Business Strategies: Core Competence

1A Question: “Core Competences are a route to competitive advantage but are hard to identify and develop”
The core competence of the company describes about the critical business issues and its competitive advantage. By managing a business the managers should know how to identify the organisations core competencies to concentrate on the success plan for the business to grow and widen with competitive advantage to compete with the competitors.
The core competence is a main strength of strategic advantage of business. The core competence is the mixture of knowledge and technical capability to perform in a business to compete in the marketplace. It enables to expand the company in new markets as well as provides major benefits to customers,

The growth strategy is a tacit method used by marketing management to expand consumer market by company’s product. The common growth strategy of organisation uses to succeed by market penetration, market expansion and product expansion. The organisations economic growth is based upon the product extension and product diversification.
Market penetration is the way the company sells its own product in larger amount of quantity in the same market zone. The market expansion for organisation is done through focusing on its products and enters in new market divisions to accelerate its growth by increasing its market share. Developing new products for their existing market performs the product expansion in an organisation.7
Types of Growth strategy:
The growth strategy is classified into two they are internal growth strategy and external growth strategy. The internal growth strategies are classified into various methods such as expansion, modernisation and diversification. And external growth strategies are like merger, acquisitions, joint ventures and strategic alliances. The organisations follow their growth or expansion strategic action by choosing these methods. The organisational needs for growth strategy, 8
• Developing new product and services.
• Increase the sales of product and

Tesco grow up very slowly in the market it has more than 800 stores around United Kingdom. The major competitors of Tesco in United Kingdom are Sainsbury’s, ASDA and Morrison’s. Tesco being a major player in food supply in UK it has faced problems in sustainable growth by pricing factor among their competitors. The Tesco came up with attractive idea by promoting its products using a value added pricing for its customers, and then later their competitors replaced this concept. The Tesco choose a sensible growth strategy by expanding its store by using horizontal diversification growth, it has differentiate it by size, range and products and customized into various segments such as Tesco Metro, Tesco super stores, Tesco Express, Tesco Extra and one stop. Through this strategy Tesco had good growth rate in UK. Later Tesco made an alliance strategy with ESSO which now a part of Exxon-mobile Corp. The ESSO is a petroleum company limited that is leased by Tesco using their subsidiary of that is operated and controlled by Tesco Metro, in major cities of United Kingdom. Tesco implemented product diversification by bring a values to their customers by Tesco credit cards, Tesco home phone, Tesco Mobile, Tesco broadband and Tesco Finance. Tesco was the first to bring the club cards for the customers and for every three months the cardholders received free coupons. Tesco starts