This made them get their own brand value and trust in the brand has increased. Differential pathways - Tesco has entered into non food business, technology as smart phones, and finance sectors. Many supermarkets have attempted to expand in other areas, but Tesco has been quite successful. Tesco stores Malaysia is making it easy for customers to do hassle free, convenient and easy banking. It has collaborated with RHB banking group.
Tesco 's ownership is owned by several partners due to it being a PLC. Thousands of people have shares within the company which means it is owned by shareholders who fund the company. The advantages of this ownership are being a PLC means you have limited liability which means you only lose what you put into the company. It is easier to access capital as you can raise share capital from existing and new investors. Shareholders are able to buy and sell their shares which can sustain the liquidity of the business.
Introduction Tesco is one of the world’s largest retailers, the company is doing stores and also online business. The company has a strong distribution network to maintain the position of the company among the world’s largest retailers. Distribution network of Tesco plays the role of make sure the goods are delivered to the global customers in the right time at the right place with the right goods. At the same time, the online home delivery service of distribution network of Tesco is one of the strategy to increase revenue but at the same time it becomes a problem to the company. Besides that, Tesco are having a higher transportation costs in the distribution costs.
Frankly, as a customer in low and middle classes, usually will look at the price first before they make decisions to buy things. Tesco has higher cost products if we compared it to other grocery retailer stores, but Tesco always has smart strategy to attract consumers, such as specific product offers, special discounts or price cutting. “The lower the cost of producing your goods and services, the lower can be the price to your customers. The operation will spend its money on staff costs, facilities, technology, equipment costs and material costs”. (O’Brien, p45, 2004).
Tesco may take this as a challenge due to the pressure of hiring Malaysians and train them in comparison to foreign employees. As they know foreign employees is more skillful in handling the management of the company and much more efficient. By taking the local people at Malaysian, Tesco will have an increase in operational cost due to training the local to meet their skills requirement. Providing training for the local staff will be expensive and it is a time consuming
Tesco tend to offer a lower price of their goods compared to their competitor in order to attract more customers. Lastly, Tesco aim to develop a large internet shopping site to provide groceries, electronics and clothing goods as well as number of their services online which may attract more customers. Tesco Stores are operating a home shopping service through their official website since 1994 and it was the only food retailer in the world to offer a robust home shopping service as of November
People working longer will increase the size of the labor force, but there will also be further pressure on services. This would affect TESCO products as people are curving more healthy products, thus Tesco started producing organic products, it provides as well an esteem added to its products and services. Technological factors: Technology is an intrinsic element to Tesco supply chain management of Tesco, it uses many technologies like wireless devices, self- checkout machines, intelligent scale, Radio Frequency Identification (RFID), Electronic shelf labeling, etc. The utilization of Electronic Funds Transfer Systems (EFTS), Electronic Point of Sale (EPS) and electronic scanners helps the company to improve stock activities and effectiveness of distribution (Tesco, 2014). Tesco as an online retailer would be able to sell a lot of good in sterling prices since it’s devaluating as a result competitors would be higher than its prices.
Additionally, some people still believe that the company is taking advantage of them because of low-quality products. For example, according to the article by Barford (2012), the quality of Tesco’s products was dropping because the company used substitute ingredients
Tesco is amongst the largest food retailers in the United Kingdom (U.K) with over 3,400 stores and staff amounting up to 310,000. Tesco operates predominately in Europe and America with their headquarters located in the U.K. Tesco has the greatest market share in the U.K dominating approximately 28% of the overall market at the end of 2017. However, there is a constant battle in the highly competitive U.K supermarket industry with the four major players being Tesco, Sainsbury, ASDA and Morrisons. In recent years, Tesco has had to change their business model as well as their services to stay a market leader and differ-entiate from the competition. To find the main sources of competitive advantage that Tesco has over its competitors an analysis of the structure of the industry should be under-taken (Porter, 1980).
In addition, Tesco is suggested to segment the existing self-brand product lines in vertical direction, for instance, Sainsbury divides its self-brand products on food and drinks into ‘Basic ’and ’Taste the Difference, which are targeted for diversified consumers. However, Tesco established its Tesco Finest started in ready meals and chilled foods, where the retailer has a natural advantage (these products are difficult to prepare and distribute). It was also evident that Tesco Finest was an encompassing proposition and could stretch into other categories. Therefore, Tesco needs to penetrate the competitive market and develop and segment own product lines in the face of high