Tesco

STRATEGIC OPTION FOR TESCO

Strategic option is a vital aspect of any organisation. Generally it is fixed by the policy makers of relevant companies. Tesco is a one of the biggest global company positioned third in the retail industry. Keeping in mind Tesco’s two different types of shareholders and investors perspective , one group want to see it no 1 in the next 5 years and another group eagerly awaiting for sound return on their investment, Anshoff matrix, porter’s generic strategy and the mode of further expansion have allows us to understand how Tesco can satisfy them well.

Porters generic strategy basically emphases on three major areas like cost leadership, differentiation and segmentation strategy. Tesco has every careful access in these areas. For example, recently launched ‘Tesco’s price check offer’ has attained much attention and given positive edge in compare to its rival Wal-Mart and other operators. Wal-Mart responded in shaken way by this challenge, which means it was a right drive in right time. To mention Tesco’s differentiation strategy we can set Tesco bank as a perfect example through its recent lucrative bond offer. In this bond they offered 5.2% interest rates for their investors which are really catching and non traditional way of approach. Once again Tesco has proved that yes we can generate innovative idea. Besides, Tesco’s segmentation policy is also different from other retailers. They utilise their innovative power to make benefited either every segment of consumers or products. For instance, launching range of organic clothing can claim praise worthy because now a day’s group of customers are more choosy about their quality products rather than being with only cheap items.

If we analyse Tesco’s mode of expansion, it is clear that Tesco adopts all the available option of growth like organic, joint venture, merger and acquisition wherever it founds easily penetrable and profitable. One of the successful examples of organic growth...