COMPETITIVE ADVANTAGE OF TESCO
Nowadays, many company around the world. So, there are a lot of competitors in a market. To differentiate the company with other competitor is through competitive advantage. Competitive advantage exists when an organization acquires or develops a combination of attributes that allow it to outstrip its rivals. Competitive advantage can occur using new technologies such robotics and information technology.
Tesco have a lot of competitive advantage than other companies. Firstly, Tesco have strongest company in their own brand marketing. Many company think that they were should sell their brands before their product. For example, Tesco is one of the examples that have used its powerful brand image to gain permission to sell a wide variety of products and service to customers. Tesco has a strong brand image with good quality, faith worthy goods that represent excellent value. Tesco can strive to facilitate better
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Through this competitive advantage Tesco has led to profit growth. The company can reduce costs and also reduce price because price ad service most important things to company which is they are extremely slick logistic organization. Many companies strive to holds the cost leadership. Like Tesco have advantage in holds the cost leadership. To maintain cost leadership, Tesco can strive to have the lowest costs in the industry and offer its products and services to a broad market at the lowest prices. They are able to price their products competitively. Tesco can ability to control their operating costs through the cost leadership so they are able to price their products competitively and be able to generate high profit margins. Thus, this is having significant competitive advantage to Tesco. Tesco will be able to create brand loyalty for their offerings and thus, price inelasticity on the part of
Tesco's suppliers provide them goods for their stores in order to sell which is really important, because without them Tesco would not have anything to sell. Tesco make sure to have good quality suppliers who can offer better stock than their competitors. Suppliers help Tesco because it deliver them with the stock for their company to run and be successful, also Tesco helps their suppliers by providing them money because they have large unpackaged orders at a time and also the suppliers will achieve good name because they supply their goods to Tesco and this is a successful high-street.
Tesco Plc is a Public Limited Company who securities and shares are included in the stock exchange and list of different countries. In UK, companies like Tesco Plc are registered under the companies Act 1980 and its shared are offered to public in regards of limited liability. In addition, Tesco is associated with retail sector that carries out a majority business of the company and contribute their share in country’s economy to a huge scale. Apart from the retail sector, Tesco Plc faced tough competition all over the world from companies like Wal-Mart, Asda, Sainsbury, and others. Although, Tesco is not in dominating position in the current retail market in the UK, but the company is one of the biggest retail companies working in the UK, North America, Asia, Europe and other. The company
Competitive advantage exists when a firm has strategy, product or an attribute that makes the firm capable of delivering similar benefit to that of competitors at a cheaper cost. Having competitive advantage is not enough the company should be capable of sustaining that particular competitive advantage for a longer period of time.
This information Tesco is gaining helps them as they are able to achieve more customers so this increase the rival competitors and they are also gaining an increase in profit and customers due to the fact more people are shopping at Tesco and using the services they provide, this also means Tesco are able to develop even more.
Tesco PLC, the top three retailer in the world, which was establish by Jack Cohen in 1919 year, which has near 100-Year history. In these days, it has been thrived to 12 country all over the world, including United Kingdom, Malaysia, India, Hungary, Ireland, Kipa, Slovakia, Poland, Czech, Thailand, even South Korea, and China (Tescoplc.com, 2012). Tesco is a public limited company. According to Marcouse (2011:92), “Public limited company (Plc) is a larger type of company that must have at least £50,000 of share capital and has its shares traded on the stock market”, therefore Tesco can have greater capital source and shareholders in their business.
The reason why I have chosen to analyse Tesco’s competitive strategy and organisational structure is because both area’s concentrate on the company’s goals. Without these areas being acknowledged properly and successfully analysed they cannot achieve competitive advantage
Tesco is originally as grocery retailer specialized in food and drink, it has diversifies into many areas such as clothing, electronics, financial services, telecoms, insurance, internet services and software.
A Competitive Advantage is a peculiarity for an organization between it's competitors . It's achieved either by lowering prices or by greatening the value of the product or by offering luxury service and benefits to cope with high prices .
Competitive advantage is that a company has better ability in earning profit and profit growth compared to its competitors for the same group of customers in one industry.
Competitive advantage(CA) is an advantage competitors gain by providing or offering customers or consumers greater value for their money through product and service differentiation or through lower prices. Maintaining competitive advantage is crucial to many businesses or organizations' success in order to survive in the market. Competitive advantage is characterized by superior performance which could be an attribute to outperform the competitors whether current or potential; or gaining a higher market share in a particular industry thereby ensuring market leadership; or ultimately, maximization of profit.(JOBBER 2010)
tesco can take advantage of its successful international expansion. tesco is in a position to share their know-how and also is able to apply technologies and know-how which will create a competitive edge over its rivals and also step its learning curve.
Competitive advantage is a very general but genuine term in the present business market. The business market is very competitive. One has to be very unique as well as customer satisfying in order to sustain in the market for the long run. “A competitive advantage is an advantage gained over competitors by offering customers greater value, either through lower prices or by providing additional benefits and service that justify similar, or possibly higher, prices” (Ehmke, 2008). (Porter, 2008) “Competitive Advantage introduces the concept of the value chain, a general framework for thinking strategically about the activities involved in any business and assessing their relative cost and role in differentiation.” It can be in various aspects of
Competitive advantage is explained by Mahoney and Pandian (1992) as the function of industry analysis, organizational governance and the firm’s effects in the form of resource advantages and strategies. In order for a firm to be competitive it must adapt to the volatile business environment and through strategic management decisions establish a competitive advantage that will ultimately produce superior performance relative to its competitors (Akimova 2000).
Tesco had to adapt to the local requirements, offering new solutions to previously recognized issues, by combining centralized purchasing and working with local suppliers, Tesco achieved economies of scale and transfer the benefit it to its customers in its express outlets. It actively engaged in creating a favorable environment in various markets; from bringing its UK based suppliers to USA and setting up in DC to engaging in Thailand with local community to explain the benefits of its value chain.
* A competitive advantage is one that distinguishes a firm or a business from the competitors in the minds of the customers. It also refers to the state or condition that make a business more successful than the businesses it is competing with, or a particular thing that makes it more successful such as having a higher sales through offering low or affordable goods and services.