Tesco’s success Essay
They currently have 11 markets throughout Europe and Asia and are currently the market leaders in five countries. Tesco also currently have over 160,000 employees working internationally serving 28 million customers. Tesco has also adapted to the Multi-format stores internationally which targets the specific area, utilising space and providing customers with local offers which will interest them. This should thus meet the needs of the customer by gaining loyalty. In order to achieve continued international growth and maintain success Tesco has evolved an international strategy based on six elements.
These elements stress the need for flexibility and change when entering different markets and the need for customer feedback. Through the constant implementation of this strategy Tesco should have no problem in maintaining international growth. Tesco’s third aim takes Tesco to a completely new level with different more intense competition globally which they are not as familiar with. Tesco’s third aim is ‘Be as strong in non-food as in food’ which basically concerns the Tesco direct website, Homeplus stores (7) and Extra stores.
Some of the stores have opticians and over 240 pharmacies. Tesco have also adapted their ‘Tesco finest’ range in the non-food sector offering products such as cashmere jumpers. Tesco currently
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Currently 22 per cent of Tesco’s sales and profits in the UK come from Non-Food and whilst only owning about 7% of the market share can still generate 6 billion in profits in the UK alone. This clearly shows how successful Tesco have been in trying to meet their aim. Customers’ interests in non-food items are growing, profits are increasing and market share is growing. Therefore Tesco is making their non-food sector very profitable and are moving closer to their aim of making non-food as successful as food.
Tesco’s fourth major aim is to ‘Follow customers into new retailing services’ and since 1997 when Tesco entered the sector they have been achieving this aim. In 1997 Tesco Personal Finance was launched as a joint venture with Royal Bank of Scotland. It currently offers customers a choice of 26 products ranging from savings accounts and credit cards to car and travel insurance. Since 1997 TPF has been very successful and has attracted the customer’s attention. Tesco were able to make personal finance profitable and in 1999 Tesco launched a new on-line bookstore and on-line banking website
In 1998 Tesco Telecoms was launched, providing simple, straightforward telecoms services with great value tariffs. However Tesco didn’t take telecoms seriously until 2003. It has not purchased or built a telecoms network instead it pairs with other existing providers. To date Tesco Telecoms has over 2 million account holders and is proving to be a growing profitable business. For this assignment I am concentrating on my local Tesco branch located in Monaghan. It is one of the 95 stores currently in Ireland. Tesco has expanded in Ireland through takeover, mainly through the takeover of Quinnsworth stores for 680 million.
This is how it became the anchor tenant in the local shopping centre in Monaghan. Tesco support local growers and buys directly from manufacturers in Ireland wherever possible. For example they buy potatoes from local producers in Monaghan. It has become a very good employer and contributes to fundraising and supports organisations such as Rehab. Objectives In order to fully fulfil their aims Tesco have a number of objectives which they have divided into 5 main categories’s including: customer, community, operations, people and finance.