The growth of Tesco has been surprising: the company announced a forecast of $1.4 billion in annual profits in 2001, and the sales volume in the first semester of this year reached $16.8 billion. Its current market share in the UK is strong: it is now 25%, contrary to 14% in 1997, and has overcome its competitors. In the domestic market, a good marketing policy can explain these good results. The strength of Tesco is not only real within the UK, but also globally. As domestic opportunities have become rare, Tesco began its global expansion like the other giants of the retail industry: the firm conquered Central Europe and Asia rapidly, and gained an important market share thanks to an efficient strategy. 37% of the company's physical floor space is located abroad, and its goal is to reach 50% by 2003. The key to success for Tesco lies in its global strategy, which combines local responsiveness and global management in many fields.
[...] Thanks to all these improvements, Tesco became a leader in retailing on a domestic scale Global expansion of Tesco The growth of Tesco in the UK has been surprising, but the domestic opportunities were becoming rare, so the firm decided in the 90's to expand globally, like many big names in retailing like Wal-Mart or Carrefour. The global expansion of Tesco is particularly fast and efficient. The good position of the firm in each market where it is established proves that the followed strategy has been successful. [...]
[...] That is why Tesco made particular efforts to be part of the community's landscape, and this willingness is indeed the best solution to compete with local retailers. To increase its growth, Tesco also uses different distribution channels, supermarkets and an online delivery service b.2. Training To be sure to fit consumers' needs, Tesco hires local managers for its stores, who know consumption trends, consumers' preferences and expectations. This policy makes work relations easier because it is easier for local employees to report to managers of the same culture. [...]
[...] Tesco implemented measures in order to meet these expectations. It decided to fit everyone's needs in providing price-conscious customers with inexpensive products, and proposes higher quality products for the upper- end target. This strategy was really risky since it is normally necessary to choose between a niche or a low-cost strategy: it is difficult to be successful being the middle”, in addressing two different targets in the same place, to propose cheap and expensive goods, to promote low prices and higher quality goods at the same time. [...]
[...] Thanks to the failure of Marks & Spencer, Tesco concentrated its efforts on adapting local cultures in its products Perspectives The current global recession represents a threat for Tesco's growth abroad. Specialists even announce potential failures in foreign activities' profitability to the firm. Furthermore, competition in developing countries has become fierce, which will increase Tesco's difficulties in the future. That is why the retailer would also like to conquer more mature markets, such as Japan or the USA. This new move in Tesco's strategy could really threaten its current good results. [...]
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