Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

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Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan
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Transcript of Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Page 1: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Presented byEric Geffre

Mitch HughesWenshu WangMengqiu Yan

Page 2: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Agenda Company Analysis-Mengqiu History-Mitch Competitor Analysis-Wenshu SWOT Analysis-Mengqiu Industry Analysis-Mitch Global operations-Eric Recommendations-Eric

Page 3: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Company Analysis 2,800 branch stores across 14 countries and

regions Non-food products

Sports equipment, kitchen utensils, etc.Own label products (ex. Cherokee)E-commerce business (Tesco.com)

Page 4: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Tesco cont., 5 types of stores in the UK

Tesco Extra StoresTesco StoresTesco Express StoresTesco Metro StoresOne Stop Stores

Tesco is mainly in the form of joint ventures outside UK

Page 5: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Tesco History Founded in 1924 by Jack Cohen Opened small store in Edgware, London National food store chain in the 1970s Took over 40 Hillards supermarkets in 1987 Surpassed Sainsbury to become largest UK retailer in

the 1990s Now world’s 3rd largest grocery retailer and 59th on

Fortunes global 500

Page 6: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Competitor Analysis Wal-Mart

Carrefour

Metro AG

Small local retailers

Page 7: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Wal-Mart In 1962, Sam Walton, in the USA. Largest retailer in the world: 6,796 stores in 14

countries. “Always Low Prices” In 1999, ASDA ( the second, in the UK) In 2007, bid for the Sainsbury( the third, in the

UK) Tesco’s Fresh & Easy in the USA

Page 8: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Carrefour In 1959, Marcel Fournier and Louis Defforey,

France, “crossroads” “High-Low Price”, hypermarket

NO.1 in China’s market

Tesco Carrefour

11 stores

in Czech Republic &

4 stores in Slovakia

6 stores in Taiwan

&€ 57.4 million

Page 9: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Metro AG

In 1964, Otto Beisheim, Germany

Cash & Carry, commercial customers

Bad performance in China’s market

No.1 in Eastern Europe market

Page 10: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Small Local Retailers

Daily grocery

Popular in Asia, especially in China

Example: Seven-Eleven

Page 11: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

A small shop in Korea

A small shop in China

Seven-Eleven in Japan

Page 12: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Strengths Strong brand image

“good, better, best” Partnership strategy

As a partner with Le Gou in China Customer service

“Every little helps” Clubcard

Performance of Tesco.com Largest online food market

Page 13: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Weaknesses High dependence on UK

76% of total revenue from the UK market Low returns

Page 14: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Opportunities Green Consumption

Low carbon economyRenewable materials

Non-food market

Page 15: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Threats Intense Competition

Wal-Mart, Carrefour, and Metro (international market)

Asda, Sainsbury, and local retail stores (UK market)

Increasing labor wages in UK

Page 16: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Industry Analysis Food retail industry

SupermarketsHypermarketsFood specialistsDiscountersOther

Page 17: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Industry cont., Increase in 2001 Decrease in 2002 Causes

Energy costsProperty taxesTransportation prices

Page 18: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Industry cont., Food retail industry in Europe

Page 19: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Industry cont., Environmental management program

Tesco’s environmental program Employees and community Recycling and waste management centers Reduce energy consumption Bio-fuels

Page 20: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Global Operations Entered international market in 1994 First international store in Hungary Poland, Slovakia and Czech Republic followed Entered Ireland in 1997 Entered Asia for first time in’98 in Thailand Followed by South Korea, Malaysia, Japan China in 2004

Page 21: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Global Operations cont., Tailors stores to local cultures Extensive use of local resources

Only 100 of 100,000 international employees are ex-patriots

Multi-format stores

Page 22: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Global Operations cont., Operates 87 stores in Hungary

Market leader Largest foreign investor

Has 105 stores in Poland 13 acquired from HIT Also the market leader

Operates 72 stores between Slovakia and Czech Republic Most stores are smaller formats

Page 23: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Global Operations cont., Tesco runs 91 stores in Ireland

Market leader Has 8 stores in Turkey Entered Thailand in 1998

Purchased Lotus chainOperates 219 storesVery successful with multi-formats

Page 24: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Global Operations cont., Very successful in South Korea

Operates 62 stores, 12 were acquired from Aram-Mart

111 stores are located in Japan Purchased Tanekin business to help grow organic market

Entered China in 2004 Now has 39 stores Area of concentration for Tesco

Page 25: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Global Operations cont., Opened 238 stores internationally in 2006 Helped grow international sales by 40.7% over

2005 sales

Page 26: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Recommendations Focus on brand

Don’t focus on price competition

Look to offer more unique products Become more environmentally conscious Continue to develop overseas market

Have greater percentage of sales come internationally Focus heavily on Chinese market

Page 27: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Conclusion Tesco is continuing to establish brand around

world In a competitive industry with strong

competitors Continuing its global expansion Will have to evolve to be successful

Page 28: Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.

Any questions?