Tesco's Competitors
Tesco, Asda and Sainsbury's are much bigger stores than the discount
stores like Aldi and Netto. This means the bigger supermarkets will be
able to sell more goods and gain a bigger profit. If Aldi and Netto
were to make their stores bigger they would be able to compete with
Tesco, Asda and Sainsbury's in the sales department. This will mean
that they will be able to contain more goods and sell more to gain a
larger profit. It will give them the opportunity to sell more
different types of foods and different brands. The larger supermarkets
are now using diversification and sell more different types of
products e.g. electrical goods and clothing. Expansion of the smaller
supermarkets would also give them the opportunity to diversify their
product range and start competing with the bigger ones.
Recently I have noticed that Aldi have started diversifying in their
product range slightly. They now have their own sporting make and sell
camping equipment, sporting equipment and electrical appliances etc.
This will increase their market share and make them more competitive.
Tesco have now set up their own mobile phone networks, bank, insurance
company and clothing company. Asda and Sainsbury's are now attempting
to follow in Tesco's footsteps in order to continue competing with
Tesco. The smaller discount companies would also have to invest in
these services if they wanted to compete with them.
Another reason why Tesco consider their competitors to be Asda and
Sainsbury's and not Netto and Aldi is that the two supermarket groups
aim their products at different people. Netto and Aldi are renowned
for being 'Discount...
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...allow them to charge high prices for the
prestige goods, therefore make a large profit on them.
The large supermarkets use going rate pricing, this means that they
are immediately competing with the other supermarkets with a certain
type of product.
The large supermarkets use loss-leading pricing to make the customers
look around the supermarket. The smaller companies should use this if
they want to compete. The supermarket staff should put certain objects
in popular places to make them buy them while they are buying the
chosen cheap product. The large supermarkets use this effectivaly.
The larger companies have extra facilities (that you have to pay to
use) in the supermarkets to gain extra profit. They have things like
café's and newsagents to make extra money on top of the money made
inside the main store.
• A more competitive, efficient and profitable business with less competition in the domestic markets.
(c) Create an expanded and secure market for the goods and services produced in their territories.
In today’s world even with the economy suffering and individual income declining, the food industry is still up and running. Chain restaurants, mom and pop establishments, and fast food restaurants that are learning to market their products cheaper and more reasonable to the consumer are still going strong in the United States. They are offering healthier meals due to the consumer wanting to become healthier. They have their ups and downs like any business but are learning to give the consumer what they need and desire. That is the way restaurants keep their customer happy, by buying products from company like Sysco, Gordon’s Food Service, (GFS), and other restaurant suppliers. However; Sysco is the number one supplier to restaurants and hospitals, making them the most profitable company in the world (Sysco.com, 2011).
There are several common factors of Sainsbury’s being a successful organization. The key elements of the planning processes of Sainsbury’s are vision, mission, values, plans and objectives. The mission of Sainsbury’s is to be the consumer's first choice of food, delivering products of outstanding quality and great service at a competitive cost through working faster, simpler and together. The vision of Sainsbury’s is to be the most trusted retailer where people love to work and shop. Sainsbury’s also has five values that it’s said that they are what have made Sainsbury’s different from other retailers and provide framework. The first value of Sainsbury’s is best for food for health. For the sake of being best for food for health, Sainsbury’s serves over 23 million customers each week and plays a key role in helping them Live Well For Less. Being best for food and health involves making it economical and easy for the customers to enjoy a healthier, balanced lifestyle, providing specialist health services and promoting activity. Sainsbury’s has been part of the Department of Health’s Responsibility Deal from the outset, building on the work over a number of years to make the food healthier. The second value of Sainsbury’s is sourcing with integrity. Sourcing with integrity is the key in Sainsbury’s dealings with farmers, growers and suppliers in the UK and around the world. By ‘sourcing with integrity, Sainsbury’s provides the customers with quality products at fair prices as consumers care about the provenance of the goods they buy and the integrity of the companies they spend their money with. Thirdly, respect for our environment. At Sainsbury’s, respecting the environ...
...price, it also allows for them to increase their sales and enter into new markets, which in turn would help to increase their profits.
4.2 Analysis of Resources, Capabilities, and Core Competencies. Selecting a business strategy that details valuable resources and distinctive competencies, strategizing all resources and capabilities and ensuring they are all employed and exploited, and building and regenerating valuable resources and distinctive competencies is key. The analysis of resources, capabilities and core competencies describes the external environment, which is subject to change quickly. Based off this information, a firm has to be prepared and know its internal resources and capabilities and offer a more secure strategy. Furthermore, resources and capabilities are the primary sources of profitability.
The expansion into new markets and lines to help assure the full use of resources;
To increase the amount and type of stores internationally, as it is in the United States.
The first data protection Act came into force in the UK in 1984 to protect individuals who had information on them held on computers (meaning personal information must be obtained legally). This Act gave people the right to see their personal file, recently the data protection Act of 1998 was introduce because the previous Act does not apply to written data, therefore individuals had little control over the use of personal data. However the Act regulates the way personal is collected stored, process and used. It applies to all data stored in a computer systems and paper based on manual records that are stored in a structure way. Within the N.H.S a person, called the data controller should take charge of the storage of all personal records.
...ries such as Spain, Belgium, UK, Japan, and China. Future growth can be obtained through positioning current brands in those emerging markets.
A company’s vision is the core of the company. It defines what a company wants to achieve and gives general direction on how to achieve its goals.
It is a right decision to exit from the United States for Tesco. Firstly, Tesco faces the huge pressure of competition in the United States. Tesco is the world’s third largest supermarket group, but America has the world’s largest supermarket group: Walmart and a lot of native supermarket brand such as Costco and Trades Hoes. These supermarkets in almost cover all parts of the United States. Although Tesco use small format grocery stores as their business strategy so that can compete with native American supermarket brand. However, Americans prefer to shop in large supermarket stores to ensure varieties and quality. So this kind of mid-retail stores do not have the market in America. This is also because Tesco ignores the aspect of social when they analysis the American market. Tesco does not understand the American spending. There is a large difference between American customer and British customer. A store environment, service and sales staff can effect consumer judgements, but Fresh & Easy located in these areas are too simplistic such as they rely heavily on self-service tills, which caused the company brand looks very weak. On another aspect, Fresh & Easy pay attention to California, Nevada, and Arizona, but these is a problem of economic recession in these regions. Tesco choose this time to enter America, which make company take the risk of subprime crisis and the subsequent global economic downturn. Except this, Fresh & Easy do not have good marketing tool to attract customers. For example, some supermarket chains use coupons to attack customers such as
International trade is the growing share of global production and growth in trade is expected to outperform
... to develop comparative advantages and conduct the uneven competition and make a joint effort to accelerate its advancement, and therefore, increase their respective competitiveness on a global scale.
...ndustrial capacity, technology, and infrastructure to compete with the industrialized countries, which have been honing their economic might for over a century.