1.0 Introduction
There are “Big Four” supermarkets in the UK: Morrison, Tesco, Sainsbury and Asda (Cashian, 2007). Supermarkets play an important role in daily life for people. In order to get the result which is better, this portfolio will related to the supermarket industry and make the comparison with Tesco and Asda on the strategic choices respectively. There will be four theories as the tools for analyzing in blew contexts which hope to compare the different situation from difference aspects. The Five Forces Model (1979) will used for the supermarket environment in analyzing the external environment of industry, The Value Chain Model (1985), The VRIN Model (1991) and The Blue Ocean Strategy (2005) will help for comparing the competitive advantages of Tesco and Asda.
2.0 The overview of Asda and Tesco
Asda is a British supermarket chain which was built in 1949 (Asda, 2016). In 1999, Asda joined to Wal-Mart (Asda, 2016). “To be British’s best value retailer exceeding customer needs, every day” and “Saving you money, every day” are the mission and objective of Asda respectively (Business Case Studies, 2015). Asda developed low-price strategy and always performed for achieving the mission and objective and getting competitive advantages.
Tesco is the largest retailer in the UK while is the third-largest supermarket group in the world (Tesco, 2016). Tesco was built in 1919 which operated for food, clothing, electrical appliances, financial services, Internet services,
Tesco is a British multinational grocery and general merchandise retailer, it has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in UK, where it has a market share of around 30%.
Tesco’s is a private company which is owned by directors and shareholders who fund the business and the sole purpose is to make money. Tesco’s main purpose is to sell and make profit on products they sell such as food and online service. Tesco’s will provide excellent customer service and make sure all customers come back which
As Asda is a public limited company its shares can be sold to the public by selling its stock. Asda’s purpose is to supply goods of a certain quality to customers and as well earn money to stay in the retailer’s competition which include Tesco, Sainsbury’s and Morrison’s. Asda is a national organisation founded in 1948 by J.W. Hindell however was took over by the retail corporate giant in America, Walmart, after a £6.7 billion takeover in July 1999. Asda’s current owner since 2016 is Sean Clarke. Asda is solely in the tertiary sector as it provides a service/product to its consumers for example vegetables and meat.
ASDA is a large organisation that operates internationally; therefore they have branches in different areas. Their main targets are families, and they do everything towards making good customer satisfaction. In order to make this possible they communicate with their customers and employees through different methods. ASDA has their strategic decisions to operate and keep the customers informed.
ASDA is a public limited company and the second largest supermarket in the UK. ASDA founded in 1949 under the name of Associated Dairies and Farm Group. Asda offers various types of goods and service such as clothing, grocery, electronics, home furnishings and baby product (ASDA, 2014).
Product offerings by these contenders are similar as Tesco’s to a huge degree. This procedure helps Tesco to ensure its commercial center by expanding competition. A large portion of the contenders of the Tesco have an equivalent or a bigger market share in the store business. By industry investigators, Tesco PLC has a twenty nine per cent of shares the grocery store industry.
Tesco is the biggest private sector employers and market leader in the UK supermarket sector.
Tesco is a PLC which means it’s a public limited company therefore has limited liability. Limited liability is when only the money you invest is at risk and not your personal possession. Tesco is a British and Irish multinational grocery and general merchandise retailer and owns 27.8% of the market share in the United Kingdom. It has 6809 stores over 12 countries across Asia and Europe and it is a large company as it currently employs over 476,000 people worldwide. Tesco was founded in 1919 by Jack Cohen as a group of market stalls and on his first day he made a profit of £1 on sales of £4. The name Tesco came from
Tesco is one of the leading food retailers within the UK retail industry and is one of the largest food retailers in the world with its headquarters based in Chechens United Kingdom In 1919 Jack Cohen the founder of Tesco started selling groceries from his market stall in the East End of London. In 1929 the first Tesco store was opened by Mr Cohen in North London. The business has continued to grow and Tesco now operate in 12 different counties, employ more than 500,000 staff and cater for over 75 million shopping trips every week (http://www.tescoplc.com).
The aim of this report is to examine what generic strategy Tesco employs, the position this strategy takes on Bowman’s clock and whether Tesco’s generic strategy provides an effective competitive advantage. “Strategy is the direction and scope of an organisation over the long term: which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations.” (Johnson et al, 2005)
Tesco is the largest supermarket retail chain in the United Kingdom with Sainsbury being their closest rival. It is also the third largest retail chain in the world. In the beginning Tesco started off by selling basic groceries before diversifying into many different markets. In 2007 Tesco was operating in the following fields:
The low priced fair-trade cotton clothing could lead to price wars. In addition, there can be low profitability because of competitive moves for Tesco. Finally, international competitors like Wal-Mart could add a cotton line in Germany to compete with Tesco.
Prepared by: Martin Witthoeft Module Title: Strategic Management Module Leader: Graham Webster Module Code: BC315017S Academic Year: 2008/9 Semester: One Level: 3 Submitted: 17 December 2008
Tesco, which is one the largest supermarket chains in the U.K., was founded in 1919 by Jack Cohen. The first store that was opened was in a small market in London and since then it has managed to expand over 12 countries with 530,000 employees. The brands aim is to maintain competitive prices.
Tesco is the biggest retail chain in the United Kingdom. Tesco was first founded in 1919 when Jack Cohen started selling surplus groceries from a stall in the East End of London. Along the years, their business has grown and currently Tesco operates in twelve countries around the world, employs over 530,000 people and serve tens of millions of customers. The brand name Tesco was formed by the combination of the initials. Between 1955 and 1960 over 500 new stores were opened. Tesco had become a common name, not only for groceries, but also for fresh food, clothing and other.