Strategic Management of Tesco

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1.0 Introduction The food and drink retail sector represents the largest industry in the UK. In recent years UK supermarkets have come under increased scrutiny over their treatment of suppliers, customers and their competitive position in the market. The report below provides an insight into the supermarket company, Tesco, with emphasis on its external environment analysis and company's analysis of resources, competence and culture. Tesco is one of the largest food retailers in the world, operating around 2,318 stores and employing over 326,000 people. It provides online services through its subsidiary, Tesco.com. The UK is the company's largest market, where it operates under four banners of Extra, Superstore, Metro and Express. Many…show more content…
And as suggested by Porter in his article Strategy and Internet, the companies should start viewing Internet as a complement to their business rather than a cannibalistic as done by Tesco. Initially with the introduction of Tesco.com the company was able to improve its logistics and reach more customers and increase sales. Tesco.com was successful in attracting busy customers who could do an entire week’s shopping in 10 minutes. The combination of use of Internet along with the physical store made Tesco.com a very successful venture. For Tesco operations have become necessities rather than luxuries. Systems that control stock, keep all the stock and deliveries records and analyze business transactions are the lifelines of the company. It can also be said that IT has risen beyond its traditional support role and taken up a central role in business strategy formulation. Going further, by implementing IS strategy to its core business like implementing extranet system at Tesco would enable it to use the Internet to create proprietary and customized information flows between the company and its business partners. The system would connect business partners online behind virtual firewalls, bringing more flexibility, scalability, extensibility and integration across the distribution channels. It will also helps to extend the key information on business partners throughout the supply chain and facilitate collaborative relationships
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