Tesco Business Strategy

Tesco is robbing the UK of its culture and that’s bad for business. Enough is enough. Tesco is one of few chain retailers in the UK guilty of creating clone towns. A Clone town stall the quality of life in home town and prospect for growth becomes smaller. Retailers like Tesco cause home towns to lose its individuality and the way of life becomes unrecognizable to the people that live near a Tesco. 41% of the town is clone town populated by chain stores with limited categories of shops with an even lower range of service available. Britain can fight becoming a nation of clone town and Tesco can reverse this trend, Cohen’s aggressive manner to negotiate bargains with manufactures provides a false sense of loyalty for the consumers (Winterman,2013).

However, the aggressive manner Tesco uses its resources and capabilities are in question. The illusion of loyalty helps strengthen Tesco’s vision for growth and diversification. The exploitation of its capabilities to distribute goods effectively is in question. Tesco’s strength is to exploits its resources and capabilities. Which is great for business and its shareholders. The result, over 60% of the British’s household has shopped at Tesco’s at least once a week (WalesOnline,2009). According to the textbook. resource-based view highlights the company’s innovation and learning, to build, apply and extend current resources and capabilities where global sales are declining (Pitt&Koufopoulos,2012). By applying their unknown comparative strengths, Tesco’s resources and capabilities reinforce the company’s active performances. However, for the suppliers and communities, Tesco is a corporate bully robbing the community. Like the pilgrims and Native Americans changed the culture of America. Tesco’s growth comes at the expense of small businesses while diverting trade and wealth from local economies. On the other hand, the clarity of Tesco’s vision of continuous growth via diversification supports the organizational effectiveness in the marketplace (Pitt&Koufopoulos,2012). Tesco ability to gather resources and adapt their capabilities to create value reminds me of Wal-Mart rise to the world’s #1 retailer. With strategic asset (land) and distinctive capability (Loyalty), companies will continue to manifest a creation of value. Exploitation leads to increase opportunities to create advantages and enhance its value-creating capabilities in the