(Home plus virtual store)Raj RakholiyaYusuf KawoyaWill Mayers
Home plus (Company overview) Tesco has an 81% stake in the Samsung-Tesco venture, which operates Homeplus supermarkets. Tesco stared its operation in London UK in 1919s as a retail store. It is operating in 14 different country. Tesco invested $ 3.2 billion in south Korea as a part of their expansion plan.
Continue.. The company retail store business increased the number of superstores from 7 to 13 within 4 years. Tesco also started 24 stores in Thailand and 1 in Taiwan and looked to starting operations in Japan, China and Malaysia.
Alternative business strategy How can company grow with out increasing the number of retail store? Homeplus has the answer- virtual subway stores. What is virtual subway store? http://www.youtube.com/watch?v=nJVoYs Bym88&feature=player_embedded
Why company adopted such strategy S.Koreans are the second most hard working people in the world. After the week of hard work and due to limited time it would be difficult for people to spare time after grocery shopping. To tackle this problem Homeplus came up with idea of opening virtual store.
Result of the new strategy.. Homeplus’ online membership increased by 76% Online sales increased by 130% Homeplus became number one in the online market It is even became a very close second, in offline market
Strengths.. Succeed to attract pool of tech and time savvy people. Established brand name Successful history of operation Experienced staff Innovative Technology
Weakness.. If the range of the product is changing, it would be costly to create virtual store all over again with IQ code technology.
Threats.. Threats from hackers Power failure Technological break down Competitors
Opportunity.. Company can introduce this successful business model with the same technology in developed country. They can diversify to attract new customers. Can establish it self as value brand through offering competitive prize.
Indirect Competitors.. E-BAY Amazon Home pluss strategy is competently different from these online retailers. E bay provides platform to both buyers and sellers.
Summary.. Homeplus has used alternative marketing strategy by delivering to the door steps of customers rather brining customers to stores door steps. Thank you..