Group Tesco
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Transcript of Group Tesco
8/2/2019 Group Tesco
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Group 5
Case study
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Introduction
Founded in 1919 by Jack Cohen
Low price = bad image?
New corporate strategy formed Largest retailer in the UK, with around
30% market share
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Strength and development
in the domestic marketThe Largest food Retailer in the U.KHeading almost 30 %share of market More than 2000 stores ranging from the extra hyper market style to smallTesco express high street outlets.UK’s more valuable brands in 2008
Tesco net worth £8.6bn
Sainsbury’s net worth £4.6bn
Marks & Spencer net worth £3.9bn
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Components of
the business strategy
Operation of a multi-format approach
Building Tesco as a brand
Coordinated business planning systemSimplification of in-store systems
Customer loyalty
Efficient and well organized supplycycle
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International Expansion
Expansion international operations hasbeen started since 2000
entry new countries substantial increases in the network
and of sales in several markets
change of format in developmentsubsequent
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Knowledge transfer
Increased regional sourcing capability Extend data sharing with major
multinational suppliers
Transfer of the multi-format approach Transfer of retail branding Centralize supply chains
Move every day low pricing policy tointernational markets Transferring retailing services to the
international markets
Types of knowledge transferred
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Developments in…. Poland
1995 – Acquired 36 small stores taking98% share of the company.
2001 – 10 hypermarkets
2002 – Acquired Dohle. Taking 13 HIThypermarkets, doubling their numbers.
2004 – Developed a multi format approachDistribution centre was opened.
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… South Korea
1999 (May) – bought 51% of the SamsungCorporation. $250 million.
(June) – totaled 89% ownership
2001 – 2005 -35 hypermarkets 2003 – new formula for a more manageable
store size
Opened the first Tesco express“most ethical company”
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… China
2004 – 50/50 joint venture with Ting Cao(now own 90%)
2005 – 15 storesOpened a distribution centre
Very fast Development
乐购乐购
Happy to buyHappy to buy
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Conclusions
Targeting the developing economies
Enter into foreign markets throughacquisition of smaller well establisheddevelopments
A quick development of a brand within thenew market
Management processes
Local adaption
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Discussion
What are the key components of implementing a strategy in the UK?
Tesco enter new and developingeconomies, how have they made theserisky ventures successful?
Tesco has developed and grown incrediblyfast throughout the world, in countries suchas Indonesia, Pakistan and Turkey. Withthe fast developments has come a lot of controversy surrounding the Tesco brandand company ethics, do you think this hasany bearing on the lack of Tesco stores inScandinavia?