Tesco pursues these market segments through deployment of a seven steps core business strategy which determines the company’ s vision and intent onto these areas: Grow and sustain the existing UK market, expand retailing services in all geographic target markets, establish as an outstanding retailer amongst all product-market categories, sustain retailing leadership amongst all product categories through cost leadership and technology and innovation, transcend and leverage Tesco’ s brand value to existing and upcoming brands, create value to the communities at large, and expand Tesco human resources team to add strength to the company.
The firm currently employs around 500,000 employees for smooth operations of the organization (Tesco PLC c). Tesco has a diversified location strategy which provides the customers with a wide assortment of brick stores along with an online shopping facility through its e-retailing strategy. Tesco runs around 4,000 stores globally, which are responsible for a sales turnover of roughly about 50 billion pounds per year. The various store formats of Tesco include Extra Stores, Metro Stores, Express Stores and Super Stores (Tesco PLC b). The size and location of these stores differ with respect to the changing consumers’ demands, their shopping trends, and their respective purchasing patterns and behaviors.
Tesco scans the market trends in terms of opportunities and threats and devises the strategy to counteract accordingly. The company has embarked upon diversification into several retailing businesses besides food retailing. It includes finance services retailing, telecommunication services, Internet retailing, petrol stations retailing, and health care, research and consultation services etc. Tesco employs integrated operations strategy to deliver value to customers through cost-efficient and effective operations across the company logistics chain.
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