Marketing Recommendations for Tesco

Tesco is the 3rd largest retailer in the world measured by profit and 5th largest

Technology-Tesco's is into mails although this method of communication has been in existence for ages and is still used. But the internet enables messages to be sent faster than postal mails. So Tesco's might face competition from cyber cafes and such businesses operate within the Information Technology (IT) Industry.

Tesco’s biggest weakness is its increasing of debt. As growing its network worldwide, Tesco has undergone into huge financial debt. Tesco has not been able to get rid off from debt in last year as compared to its competitors. Dues to this financial crises, Tesco has been withdrawn a series of products from the market. This has been concluded in a huge financial loss also, has been damaged its image in market.

Tesco has expanded into many other countries over the years, but as the “BRICS” economies are becoming increasingly attractive, an opportunity to venture into these economies seemed to be a ‘rising star’ for Tesco. Tesco’s ‘eye on the prize’ meant that they took their eyes off what made them successful in the first place- their UK stores. Ultimately, expansion into China, India and Thailand has left what was their ‘cash cow’ UK stores to currently become their ‘problem child’. Losing focus on their original investments meant that they “slipped behind in terms of stores, service and innovation.” http://www.bbc.co.uk/news/magazine-17767565 In addition to their struggles to maintain the success of their UK stores, focus on China, Thailand and India had a massive impact on their competitors such as Asda, Sainsbury’s, Lidl and Aldi. During the time that Tesco focused on the new move, it was an opportunity for its competitors to steal Tesco’s 30% market share – Sainsbury’s brought in “By Sainsbury’s” and Asda brought in “Chosen By You”. When Tesco realised their mistake and focused their attention on their UK stores, they invested in the “Big Price Drop Flop” but the £500m campaign only damaged their branding image, as customers thought the quality of their products had dropped. It was a clear step by step process for Tesco losing its place

Tesco operates in 14 different countries. Therefore its performance may be influenced by the local legislation and political factors. There are

Tesco PLC is one of the largest retailer in the world and by revenues it is the third largest , started in Welwyn

When looking at the political factors for Tesco, and, as it operates in a globalized environment with locations across the world, the company’s performance is extremely influenced by the political and legislative functions of each country. In terms of legislations under employment, the government really encourages retailers to provide work-place opportunities from, flexible, lower paid, local based jobs to highly skilled, paid, and centrally located jobs (Balchin, 1994) to meet certain demands relating to students, senior citizens and working parents. The company understands that while being in the retail industry, it has a large impact on individuals and the work place (the development of new stores may often be seen as a conflict to other retail sectors due to the fact that the ‘traditional’ stores go out of business or are forced to cut certain cost in order to being able to compete) as being a fundamentally local and labour-intensive sector.

To hand of Tesco are a lot of opportunities for as well as development into marketplaces such as digital show business over their 80% speculation.

As I have mentioned before, this research paper is being taken exclusively with the aim to evaluate the Tesco’s performance in both financial and business terms over a three years period. Since the financials will be compared with its three year

Tesco is one of Britain’s leading food retailers and has 586 stores. From 1992, Tesco has grown greatly and has increased its market share from 10.4% to 15.2%. This increase in customers has also given Tesco a large amount of profit.

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.

These may be as a result of Tesco's troubles from accounting scandal that has obligated changes in its top management, a sinking share price, decreasing sales and loss of consumer confidence as consumers turn to discount rivals such as Lidl and Aldi. Nevertheless, Tesco has put in place a road map to address the key issues by rebuilding trust with shareholders and stakeholders, as well as to win consumers’ confidence in Tesco’s brand.

Since acquiring number one ranking in 1996, Tesco has developed a successful multiformat strategy that has accelerated its advantage. Its UK sales are now 71% larger than Sainsbury’s. Also the Competition Commission’s report makes it very difficult for a competitor to challenge its scale and has effectively scuppered Wal-Mart’s chances of stealing UK leadership. Therefore, Tesco is in an enormously strong position in its domestic market.

Tesco had achieved measurable success in the UK market which was highly regulated and competitive. Due to regulatory pressures, Tesco focused on its operations and capital investment within UK, which also led to opportunities in the international markets as they were a profitable business.

The Corporate Steering Wheel has delivered an impressive performance of Tesco in line with its corporate goals and mission. Each of the five perspectives has assist and transformed Tesco to be well positioned for long term growth. David Reid, the Chairman reported that the Tesco team has once again delivered a good set of results for the year 2010. Even as the markets around the world are emerging from recession, each part of Tesco’s business is well positioned to pursue its