Tesco

Tesco plots to make even more dough
Identify the development directions available to Tesco. Assess the relative suitability of each of these options by ranking them . For each of the top four development directions in your ranking compare the relative merits of each development methods. Complete your evaluation of the options thats now appear most suitable by applying the criteria of acceptability and feasibility.
Group- 7 week - 7
By : Prasath, Nikhil, Pinkesh.
1
Identify the development directions available to Tesco
PINKESH
Market Penetration
Four Important Development Directions
Product Development
Market Development
Diversification
PINKESH
Market Penetration
Product Development
Market Development
Diversification
Market Penetration
Current situation and future direction :

core competence and powerful resources for grocery industry. Different scheme such as club card and value range loyalty scheme. Stable profit due to economic of scale. Offering product with backward integrity in order to minimize the cost. Current strategy : Continues expansion; Nationally and internationally. purchase large volume of product. Increase the Purchasing power of existing customers. Strengths of company :
strong brand reputation.

Wide range of resources. Increasing number of customers. PINKESH
Market Penetration
Product Development
Market Development
Diversification
PINKESH
Product Development
Current situation and future direction : increasing demands for Non-food product Current strategies: Focusing on the development of non-food products . Introduction of new product in existing market. Benefits of these direction : High growth market share and revenue
PINKESH
Market Penetration
Product Development
Market
Development
Diversification
PINKESH
Market development Current situation and future direction:
Varieties of product. Target different market segment. Target different countries and culture.
Current strategy :
Target the other countries . format of shops.

On-line shopping channel.
Benefits of these direction :

Vast opportunities with other countries in terms of size and scales. Customer segmentation improves revenue and market share. Own label products for on- line shopping.
PINKESH
10
Market Penetration
Product Development
Market Development
Diversification
PINKESH
Diversification
11
Current situation : Longer opening time Non- food product current strategies: Emphasis in different sector like finance, telecommunication process.
PINKESH
each of the four development directions in your ranking compare the relative merits of each development methods (internal,acquisition or strategic alliance)
NIKHIL
Internal growth
Market Penetration. - Join and use the existing marketing strategies. - Market expansion by improving the line of products. Market development. - Market entry is considered as critical, based on the internal venture. Product development. - Innovation is necessary. - Products should be improved with the help of knowledge and skills inorder to meet the customers needs and demands. Diversification. - Diversification is difficult due to current knowledge and skills.
NIKHIL
Acquisition
Market Penetration. - Expanding the range of products. - Developing market share. Market Development. - Penetration to new market. - Development of new segments. Product Development. - Use the competency in order to develop new products and innovations. - Improving the position in the market. Diversification. - Focusing on the new market. - Application of horizontal integration in order to have an access immediate access to the new market.
NIKHIL
STRATEGIC ALLIANCE
Market Penetration - Expand the range of products - Develop market share Market development - Global expansion - Focusing on new segments Product development - Application of new technologies with improved knowledge and skills - Adding resources for innovation and developing market share Diversification - Substitution of vertical integration - Risk of seasonal and cyclic fluctuations in product demands - Focusing on the competition
NIKHIL
Complete your evaluation of the options that now appear most suitable by applying the criteria of acceptability and feasibility
PRASATH
Strategic direction of tesco

To increase the company core competency as a strong platform for grocery retailing To develop higher-margin non-food category products To develop new markets in order to create additional profit Additional services that are being offered by the company
PRASATH
Strategic direction (cont..)

Benefits
Higher margin
Reduce the operation cost

Helps in analyzing the customers for the future process of decision making
Risk
Experience High competition
PRASATH
Acceptability Evaluation
CEO customers
shareholders
Suppliers
PRASATH
Internal factors
Investment requirements & Working capital requirements
Employment implications -to improve the core competency of the company

Technical skills is important for expansion of market segment Acquisition and acquisition planning New products can help to cover new markets Communication can help to focus on market and product expansion as well as improvement of new services
PRASATH
External factors
The aspects about how the bankers respond to the strategies that the company proposes
Customer will help to strengthen the core competency of the business, together with the process of product and market expansion
Competitors will be affected regarding the issues of competitive advantage and expansion of line of products and target market Suppliers are important in the process of competitive advantage due to supply chain, product innovation and market expansion The government and other regulatory approval
PRASATH
22
References :
Meldrum,M,McDonald,M.(2007)Marketing
in a nutshell: key concepts for nonspecialists ,Elsevier ltd. www.guardian.co.uk www.tesco.com www.foodanddrinkeurope.com
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Any questions ????
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What are the four important development directions for Tesco discussed in the document?

What are the four important development directions for Tesco discussed in the document?

What are some of the current strategies adopted by Tesco for product development?

What are some of the current strategies adopted by Tesco for product development?

Tesco plots to make even more dough

Identify the development directions available to Tesco

Four Important Development Directions

Four Important Development Directions

Current situation and future direction :

strong brand reputation.

Four Important Development Directions

Four Important Development Directions

Market development Current situation and future direction:

Target the other countries . format of shops.

Benefits of these direction :

Four Important Development Directions

Strategic direction of tesco

Strategic direction (cont..)

Reduce the operation cost

Employment implications -to improve the core competency of the company

Any questions ????

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