TESCO

TESCO E-Strategy



Table of Contents

Executive Summary3

Task 14

The Company4

Business Summary4

Pricing Summary5

Key Financials (In GBP as of 02/26/2011)6

SWOT Analysis7

Strengths7

Weaknesses8

Opportunity8

Threat8

Industry Analysis: PEST Framework9

Political Factors9

Economic Factors9

Social/Cultural Factors10

Technological Factors10

Industry Analysis: Porter's Five Forces10

Bargaining Power of Suppliers11

Bargaining Power of Customers11

Threat of Substitutes11

Bargaining Power of Competitors12

Generic Strategies of Tesco12

I.T Integration16

Growing Importance of Online Marketing16

Internet Users and Their Attitude towards Online Marketing17

Recommendation and Conclusion17

References20

Appendix22

Task 222

Objectives of the Document22

The Websites Evaluated22

Major Findings23

Conclusion24

Key Figures24

Executive Summary

The company that I have chosen to conduct strategic analysis is Tesco. In 1919, Tesco Plc was established by Jack Cohen, by utilizing the bonus which he achieved for his services in the World War I army. Then in 1924, he purchased a tea consignment from the company TE Stock well. He decided to put the initial three alphabets of TE Stock well, and the initials of his name Cohen collectively to name his brand 'TESCO'. The growing market share of Tesco owns 13% of the UK retail market. Tesco is functioning well and providing services with its stores all around the world. UK market is still the main source of the company's income even though the international business is still growing and contributing to the Tesco's profit. Technology is among the chief contributor's in the progress of Tesco's productsFrom the middle of the 1990s TESCO has been foraying into foreign markets outside its core operations at UK. Tesco has got its operations in twelve foreign markets presently and spans over Asia, Europe and North America. We will conduct a SWOT analysis alongwith PEST analysis and Porter's Value chain that will assist in analysisng e-strategies for TESCO.

TESCO E-Strategy

Task 1

The Company

The company that I have chosen to conduct strategic analysis is Tesco. In 1919, Tesco Plc was established by Jack Cohen, by utilizing the bonus which he achieved for his services in the World War I army. Then in 1924, he purchased a tea consignment from the company TE Stock well. He decided to put the initial three alphabets of TE Stock well, and the initials of his name Cohen collectively to name his brand 'TESCO'. In 1929, Cohen opened the very first Tesco store in Edgware, London. Originally, Cohen's formulated the strategy of "Piling it high, selling it cheap". Despite the fact that this strategy assisted Tesco in attracting a great amount of consumers, it also assisted Tesco in branding itself as a store for average class consumers and even earned an image as a low-end store. Furthermore, Tesco had small and poorly equipped stores, as well. The only competitive edge Tesco had been the price. The products that were available at the store seemed to be of ordinary. The rise in the income of customers in Britain caused the customers did not want to look for bargains. They were now seeking high quality products. In order to cater these changing demands of the customer, Tesco decided to close down its numerous stores to focus on super stores to provide improved quality.

Business Summary

Tesco is engaged in retailing and associated ...