Tesco

Section

 E06

 –

 G13

  Ana

 Bodin,

 Tomoko

 Ishikura,

 Otto

 Turton,

 Rahul

 Agrawal,

 Ronny

 Roeller

  Strategy

 Homework

 –

 2

  1.

2.

TESCO’s

  business

  level

  strategy

  in

  its

  primary

  business

  and

  how

  this

  strategy

 impacts

 willingness

 to

 pay

 and

 its

 costs

  We

  had

  defined

  primary

  industry

  for

  TESCO

  as

  Retail

  Supermarkets.

  These

  supermarkets

  offer

  a

  wide

  range

  of

  products

  from

  food

  to

  non-­‐food

  categories.

  As

 per

 the

 latest

 retail

 journals

 both

 groceries

 and

 non-­‐food

 products

 are

 defined

  as

 groceries.

 For

 the

 purpose

 of

 this

 analysis

 we

 define

 the

 product

 catetory

 as

  Retail

  groceries.

  Essentially

  we

  were

  earlier

  focussing

  on

  the

  size

  of

  the

  stores

  and

 now

 we

 are

 further

 drilling

 it

 down

 to

 the

 product

 category

 in

 these

 stores.

  Tesco

  uses

  an

  integrated

  “low-­cost/differentiation”

  strategy

  while

  keeping

  its

  focus

  on

  the

  “broad

  market”.

 It

 appeals

 to

 all

 segments

 of

 the

 market.

 As

  part

 of

 Tesco’s

 strategy,

 they

 invest

 on

 own-­‐brand

 products

 including

 up-­‐market

  “Finest”,

  mid-­‐range

  Tesco

  brand

  and

  low-­‐price

  “Value”.

  Tesco

  caters

  to

  customers

  from

  all

  geographies,

  classes

  etc

  hence

  it

  falls

  under

  the

  “Broad

  Market”

  category.

  Tesco

  also

  invests

  heavily

  on...