Strategies And Competitive Strategy: Tesco's Marketing Strategy

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Theory 4(Explanation) From Sun Tzu’s Art of War, “those who are not able to win must defend” which means defend yourself when you cannot defeat the enemy and wait for a good time to attack back the enemy when you can. Sometimes a good defense, but also a kind of attack, when you can protect yourself for a long time, you can also deplete the enemy 's resources. Thus, they are capable both of protecting themselves and of gaining a complete victory. Company’s Practices One of the listed company using the defensive strategy which is Tesco. Tesco was the market leader in general merchandising when Wal-Mart began to move in, Tesco responded by lowering the price on many items, to attract their customers with lower prices, while simultaneously improving the personalization of coupons and promotions. In so doing, and although Wal-Mart’s ongoing success, Tesco kept hold of its customer in many cities. Defensive marketing strategies refer to the actions of a market leader to protect its profitability, market share, product positioning, and mind share against a new competitor. If not undertaken, customers will leave the established business in favor of the competitor and will let the competitor displace the market leader and rise to the top. Tesco must be used different defensive strategies and depend on the nature of the competitor’s attack. If the competitor’s product is low price, this strategy will be a focus on the price-sensitive customer. If the new product has a specific

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