Tesco Strategic Analysis
Autor: rita • April 11, 2011 • Case Study • 2,912 Words (12 Pages) • 1,869 Views
annual reports and information from Tesco's website. The information gained
from these sources helped to discover how Tesco manages to gain the
competitive advantage in their industry. It has also helped to focus the
importance of successful competitive positioning with models from Porter to
establish the position in the minds of the consumer.
This report includes a theoretical model which will reflect the practice of Tesco
in relation to strategic analysis. It will look at the competitive positioning
approach and the models/concepts used by Porter to gain a competitive
advantage over Tesco's rivals. By doing this it will show what other
companies in the industry would need to do in order to take over the
competitive advantage that Tesco have.
Strategy is based on the long term of a business and is the direction and
scope of the organisation. It aims to achieve advantage in a changing
environment through its configuration of resources and competences
(Johnson et al, 2008).
There are generally three different levels of strategies associated with
organisations. The top level is known as the corporate level strategy which is
alarmed with the overall purpose and extent of the organisation. The second
is the business level strategy which looks at particular markets and how to
compete successfully in them and the third level is the operational strategies
which look at how the organisation delivers successfully (Johnson et al, 2008).
2.1 History of Tesco
Tesco began when Jack Cohen first opened a market stall in the East end of
London in 1919 and since then began trading in 1924. This shows that Tesco
has been serving customers in the UK for the best part of a century. Today,
they class themselves as much more of a weekly shop as they have
introduced new services, products and ways to shop all driven