Tesco Value Chain Analysis

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Established in 1919 by Jack Cohen from a market stall in London’s East End, Tesco has grown and became the leading multinational retailer in the UK with a wide range of products. Tesco’s operations in the UK are the largest within Tesco PLC (Tesco, 2014). The success of Tesco lies in its strategic management. This analysis will look into Tesco’s business in the UK by following a structure of four main parts: Tesco’s value chain management; Tesco’s important stakeholders and its managing them; Tesco’s attempt in competing with other rivals and finally, potential international opportunities for Tesco to get more profit.
QUESTION 1:
“The value chain identifies where the value is added in an organization and links the process with the main functional
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When shopping at Tesco, customers can compare prices of Tesco products with ones of Asda, Sainsbury and Morrisons. If the products are cheaper there, customers will be given a coupon. Tesco gets the prices for customers to compare from taking daily prices from Asda.com grocery website, Sainsburys.co.uk website and using an independent agency to visit Morrison’s store twice a week. (Tesco, 2014). Besides, Tesco takes advantage of technology to attract more customers by introducing their own tablet called Hudl and mobile apps that can be used for online shopping, viewing movies and other Tesco-branded services. Hudl cost about £119 – a competitive price for such a multifunctional equipment. (Forbes, 2013) By taking technology as a platform to develop business, Tesco created a marketing strategy. According to Tesco (2014), Tesco wholly owns Dunnhumby which is a world leader in customer insight. Dunnhumby works with worldwide retailers and brands to collect customers’ feedback so that Tesco could supply right products with good prices and promotions. Dunnhumby helps Tesco understand customer more and get their loyalty. Advanced technology allows Tesco to differ their products and services from those of

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