Tesco and Street Consumer Tesco Essay

Submitted By YunHU1
Words: 936
Pages: 4
Open Document
Michael Porter introduced a model that allows analyzing why some nations are more competitive than others are, and why some industries within nations are more competitive than others. This model of determining factors of national advantage has become known as Porters Diamond. It suggests that the national home base of an organization plays an important role in shaping the extent to which it is likely to achieve advantage on a global scale. This home base provides basic factors, which support or hinder organizations from building advantages in global competition. Porter distinguishes four determinants:

1. Factor Conditions

Factors can be grouped into human resources (skilled labor, qualification level, cost of labor, commitment etc.), material resources (natural resources, vegetation, space etc.), knowledge resources, capital resources, and infrastructure. They also include factors like quality of research on universities, deregulation of labor markets, or liquidity of national stock markets.
Porter points out that these factors are not necessarily nature-made or inherited. They may develop and change. Political initiatives, technological progress or socio-cultural changes, for instance, may shape national factor conditions.
To established the retail industry in UK almost the same factor conditions work for ASDA and TESCO. Both have skilled workforce and sophisticated infrastructure, skilled human resources or a scientific base, speed of creation, speed of upgrade, and degree of specialisation in retail industry.

2. Related and Supporting Industries

A set of strong related and supporting industries is important to the international competitiveness of firms. This includes supplier and related industries. When local supporting industries are competitive, firms enjoy more effective and innovative inputs. Internationally competitive home-based suppliers create advantage in downstream industries through superior inputs, co-ordination in the value chain and innovation and upgrading.
The competitiveness of retail industry is benefit from the local industries, local producers and local farmers. ASDA and TESCO are both selling almost similar items like Grocery, Fresh, Wine, Clothing, Phone accessory, Electronic goods. We can see both retail company-ASDA and TESCO has a good supply chain with their local Industries, local Producers, local Farmers and foreign suppliers.

3. Firm Strategy, Structure, and Rivalry

The context of characteristics of firm strategy, structure and rivalry in different countries also helps explain bases of advantage. The conditions in nation governing how companies are created, organized, and managed, as well as the nature of domestic rivalry.
TESCO implement a clear cost leadership strategy, as market leaders they benefit heavily from economies of scale. The introduction of their own brand allowed the company to cut their costs and increase their profit margins. Tosco's current strategy is very much one of growth. Depend on the feature aimed at the high street consumer TESCO offering different categories shop and services-
In ‘'Tesco's Extra'' stores here are over 15,000 of their own brand products. Customer can buy any product in cheaper price. "Tesco Extra" stores, selling not just food, like other supermarkets but material products such as kitchen accessories, entertainment items such as televisions and VCR players and CDs, magazines and cleaning products.
"Tesco Metro" was introduced. This was a feature aimed at the high street consumer while offering the benefits of a large supermarket.
"Tesco Express" in essence a petrol station with a small Tesco store onsite. This offered customers convince products i.e. bread, milk and essential grocery items.
Tesco Direct - The recent interim results show how Tesco's non-food products have made good progress. Tesco's Direct will offer the vast range to anyone with computer access.
Telecommunications - Tesco launched
Show More

Related Documents: Tesco and Street Consumer Tesco Essay

Five Parts Ofpromotional Mix

business like Tesco lowers prices for a short period of time to convey the effectiveness of item. For example Tesco may make a promotional offer where they lower the prices of Oriental food only because some potential consumers may not know what is was when it was first introduced to the market so the consumers would not want to spend money on a product which they have never tried . So the organisation would want to lower the price of the product until it is enhanced by the consumers then they rise…

Words 1234 - Pages 5

Tesco d1 mel Essay

recognition and do better overall. Tesco has been particularly successful because of its powerful brand. It has a reputation for value, low prices and for being customer focused. Its brand and associations have helped the company to expand into new sectors and markets. Tesco has also been strong in public relations, advertising and building profile in catchment areas on a local level. This local approach to marketing appears to be a key driver for success. Tesco has a good range of products, including…

Words 492 - Pages 2

Essay on Marketing Strategy

to ensure their products and services satisfy the needs of consumers. Marketing can also have a significant effect on a company's performance in terms of influencing the customers’ buying behavior. This essay will discuss different types of marketing strategies used by supermarket companies focusing on four main aspects: location of supermarkets, products placement, own brand, pricing strategies, as well as comparing differences how Tesco, Morrison and Aldi used them in marketing in St. Andrews…

Words 1331 - Pages 6

Assignment 1 Essay

of the employment characteristics of the retailing industry. l) Sizes of retailers and trends in sales. m) The different types of ‘ownership’ of retailers. M1 Tesco have many different types of stores to cater for different customers, locations and services. These are all listed below. Tesco Extra Tesco Superstore Tesco Metro Tesco Express One Stop Home Plus For each of those stores you must: Describe the type of store it is using a real life location address in Yorkshire. Where they are…

Words 3260 - Pages 14

Essay on business studies

The vast influence of Tesco in todays society As many of you will be aware one of our biggest supermarkets if not our biggest in the UK Tesco dominate the high street in many towns and cities. We now have a case where we get what are called "tesco towns" where the influenceand the role a Tesco has is unrivaled in a town. I found this set of facts about Tesco from the excellent Tescopoly website which you can check out here http://www.tescopoly.org.uk/ 1) 1 in every 7 pounds spent in the…

Words 2141 - Pages 9

Marketing Mix - Tesco Poland Case Study Essay

1. Marketing mix using Tesco Poland as an example 5 1.1 Products 5 1.2 Price 6 1.3 Place 6 1.4 Promotion 7 1.5 People 7 1.6 Process 8 1.7 Physical evidence 9 1.7.1 Parking 9 1.7.2 Buildings 9 1.7.3 Stores/decor/furnishings 10 2. Micro environment - competition 11 2.1 Tesco vs. Biedronka (Ladybird) 12 2.2 Tesco vs. Carrefour 12 2.3 Comparison of the top 3 retail chains in Poland 13 2.1 Current and potential threats to Tesco in Poland 16 3 Suggested…

Words 3653 - Pages 15

Tesco Stores Essay

919 to 2000[edit] A branch of Tesco built inside the Hoover Building in Perivale, London (now a listed building) Jack Cohen, the son of Jewish emigrants from Poland, founded Tesco in 1919 when he began to sell surplus groceries from a stall at Well Street Market, Hackney, in the East End of London.[14] The Tesco brand first appeared in 1924. The name came about after Jack Cohen bought a shipment of tea from Thomas Edward Stockwell. He made new labels using the first three letters of the supplier's…

Words 4201 - Pages 17

Intro To Marketing Essays

uk/catalog/tesco/market-research.htm http://www.research-live.com/news/tesco-research-adds-to-value-range/2000056.article http://www.markedbyteachers.com/as-and-a-level/business-studies/tesco-marketing-activities.html http://people.exeter.ac.uk/wl203/BEAM011/Materials/Lecture%204/TESCO%20Company%20Profile.pdf http://www.environmentalleader.com/2009/04/02/tesco-trials-in-store-market-research-to-cut-packaging/ In order to find out their customers interests and thoughts about the business, Tesco have…

Words 773 - Pages 4

Tesco Distribution Channel

Food retailer: Tesco Q1) Marketing - – channels A way of selling a company's product either directly or via suppliers "possible submission programs are merchants or small retailers or retail stores or direct mailers or your own stores" The path through which products or services journey from the source to the customer or payments for those products journey from the customer to the source. http://www.businessdictionary.com/definition/distribution-channel.html Q2) Selling through indirect channel…

Words 1711 - Pages 7

Essay on Outline Who Are the Winners and Losers in a Consumer Society.

TMA02 - Assignment Plan Assignment question: Outline who are the winners and losers in a consumer society. ‘Outline’ – my understanding of this is to summarise/define the winners and losers in a consumer society, focussing on identifying who they are and not why they are. Intro; Describe what I am going to do – keep it short and refer to the question that is being asked, I could start by pointing out who are the winners and losers in general and then building on them in the following…

Words 2394 - Pages 10