Tesco’s Operations Strategy
Corporate strategy (Top-down)
1. Tesco’s slogan: “Every little helps” – is for every 1 for every little help and to full fill every little need of customers.
2. Tesco is based on 4 main factors Core UK business, Non-food business, Retailing services and International growth.
3. Consumer – centric concept competing on price: low price policy and clubcard for customer loyalty. Tesco is using its own brand products as the "Finest" and low-price "Value” varieties.
4. Nowadays, it mainly operates 4 store models namely, Tesco Express, Tesco Metro, Tesco Superstore and Tesco Extra. The multi-format stores can not only increase Tesco’s customer flow, but also can ensure its store format to international market such as Turkey, China and Poland.
Bottom-up
1. For maximizing its customers they use bottom- up perspective along with the Top down perspectives as their day to day experience operations are different, recently on Football world cup tournament Tesco used to sell different accessories and cloths having UK football team logos and numbers to support British Football team.
2. company also improves delivery system and innovates supply chain for a good customer service. Firstly, Tesco improves its delivery system through moving to home delivery service and developing prime distribution process.
Tesco’ online shopping model can save huge amounts of capital to build warehouses, reduce the staff overhead and also increase the delivery speed its home shopping service, the company introduces new engineering process, equipment and software which called Vanderlande system
In order to increase the delivery speed and save cost, Tesco developed primary distribution that Tesco use its own fleet to transport domestic goods form suppliers. The prime distribution improves the utilization of Tesco’s trucks and increase the delivery efficiency
Market requirements
1. As they know their target market and they are successfully providing what their customers need in favourable price and time to time thy update their products and services according to customer’s expectations to satisfy them.
2. Capturing huge market nicely they have lots of supermarkets in different cities of country that made more convenient for people to go Tesco as compared to other supermarkets, and they have proper management and quality control departments for delivering max quality.
3. Huge varieties of good and focusing on
