Tesco Case

Tesco

1 – Tesco is an extremely successful supermarket chain based out of the UK. It is the third largest retailer behind only Wal-Mart and Carrefour. It has been very successful from various things. It has been vastly successful in expanding to foreign countries. Generally Tesco does not fail because it does its research and is cautious. Tesco is known for adapting to foreign markets well and changing as needed. Tesco is also very good at evolving with technology. They have changed a large amount of their business to online ordering. This process involves the customer ordering and Tesco has it ready to be picked up or delivers the order to the customer’s house. This value added service as well as their many locations make them very appealing to the consumer. Once they get you in the store they build your loyalty through quality and options of product.

2 – Out of all of Tesco’s major success factors there are some that can be transferred to the United States as well as others that cannot. Their ability to adapt is absolutely transferable. They must adapt according to the American consumer which is not easy as a foreign company as the culture is different. Tesco’s ability to evolve with technology is also transferrable especially when it uses the same language regardless of dialect. The problem with the online ordering and delivery or pickup is that you need to build your brand before consumers will begin to trust the service and product you offer especially when America consumers are very loyal to their brands. Changing to the new grocery store where you buy necessities would be a big risk for the consumer. The issue of area you can cover with a lack of number of stores arises as well. When you are first emerging into new countries your services can only cover a specific radius or range. This makes it difficult to convert consumers to your product and service. The online ordering can be transferable but not right away.

3 – Tesco was very smart but at the same...