Tesco plc
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Tesco's mission is to create customer loyalty through offering lower prices, a wide selection, and brands customers trust. Its vision is to excel at retail operations through innovative controls and systems integration. A SWOT analysis found Tesco's strengths are its UK market leadership, online operations, and customer data collection. Weaknesses include recent financial struggles and brand damage from a scandal. Opportunities lie in international expansion, financial services, and improved marketing. Threats involve leadership challenges, cost competitiveness, currency risk, and potential new ethics issues.
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1. Competitive Strength Analysis
Business Model
The business model of Costco is basically using a membership of warehouses club. The memberships of the club is providing to their customers the ability to shop at Costco stores and have the access to buy the products with the lower price.
The strategies that Costco using them to make money:
1. The Price is less than the competitors, which attract the customers, as well the high quantity of all the products.
2. Scarcity the number of products in shelves. For example: comparing Walmart to Costco, Walmart carry 150,000 items, Costco only carry 4,000. They limited the number of products to give more value to their products.
3. They having their own private label power, in order to provide their customer an economical options for their shopping lists. In addition, it’s 10-20% lower than other brands.
4. They have 4 types of membership model, that includes customer discount, and offers such as gas station and groceries. As a fact Memberships is the most effective strategy that Costco Considered.
5. They are using marketing in their magazine, coupon mails, and weekly emails from Costco.com.
What is happening now, today?
· They applied strategies and techniques that helped the company making more money, as well hire more employees and lead the company to succeed.
· The website covers about 90% of the products that are in the store.
· They offer organic food.
· Costco memberships could replace Netflix subscription.
2. SWOT
Strength:
Costco is one of largest retailer in the U.S. and seventh largest in the world that offer membership warehouse club. Costco offers wide selection of merchandises and wide range of products in high volume with low prices to its membered customers. The company has many stores location in the U.S., Canada, Mexico, Korea, Japan, UK, and many others. It also offers e-commerce website for customers to order products online, this way it allows customers to have more access to Costco’s products and more convenient. Costco is able to provide low prices for its merchandises by buying directly from the manufacturers, this way it also allows Costco to eliminate the traditional middle distributor and increase in inventory turnover. It also has its own in-house brand that produce high quality products with better value compare to its competitors.
Weakness:
Costco offers limited variety of merchandises and brands in stores, which limit the freedom for customers to have more choices when purchasing products. It also has different operation schedule compared to others retail stores. Costco only open from 10am to 8:30pm and it also has an earlier closing hours on the weekend, which could be inconvenient for its customers who want .
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- CRM involves managing relationships with customers to increase their lifetime value and generate greater profits for the company. It focuses on customer retention and relationship building.
- CRM uses technology like customer databases and analytics to better understand customer needs and behaviors. This helps companies personalize marketing, improve customer service, and increase sales.
- Operational CRM supports front-office functions like marketing, sales, and customer service. It involves managing customer touchpoints and interactions.
- Analytical CRM analyzes customer data to design targeted marketing campaigns, understand customer behavior, and aid business decisions.
- The goal of CRM is
MBA Strategic Management Assignment: Business Level Strategy and Corporate L...
Tesco has implemented several corporate and business level strategies to achieve growth and success in Malaysia. At the corporate level, Tesco utilizes a low price strategy through everyday low pricing, focuses on customers to earn lifetime loyalty, and grows through programs like their Club Card scheme, green Club Card, own brands, and payment services. At the business level, Tesco pursues cost leadership, market development, product development, and market penetration. They analyze industry factors through PESTEL, Porter's Five Forces, and evaluate strategies using the BCG matrix. Overall, Tesco's strategies aim to strengthen their core UK business while driving expansion in Malaysia through a consistent focus on customers, communities, and employees.
321 23 hints-concept-review-questions_chapter-1-retailing-role-relevance-trends
Retailing involves selling products to consumers for personal use. It matches consumer demand with manufacturer supply. The document discusses various retail formats like traditional stores, department stores, discount stores, category killers, specialty stores, and e-tailers. It also discusses drivers of changing retail structures in India like customers, marketing plans, visual recognition, workplace challenges, and planning for success. Finally, it discusses how the internet redefines the retail industry by supporting marketing, facilitating retail marketing through communication and interaction, and enabling a different retail experience through online shopping.
Notes chapter 1
Retailing involves selling products to consumers for personal use. It matches consumer demand with manufacturer supply. The document discusses various retail formats like traditional stores, department stores, discount stores, category killers, specialty stores, and e-tailers. It also discusses drivers of changing retail structures in India like customers, marketing plans, visual recognition, workplace challenges, and planning for success. Finally, it discusses how the internet redefines the retail industry by supporting marketing, facilitating retail marketing through communication and interaction, and enabling a different retail experience through online shopping.
Rep consumer experience_in_the_retail_renaissance_en_28_mar18_final_dm_
This document discusses how leading brands are building consumer experiences in the current retail renaissance. It finds that while many brands say they aim to put customers at the center, their efforts often fall short due to disconnected experiences. The report surveys over 500 retail and consumer goods leaders to understand how they harness consumer data and technology to engage customers. It reveals that brands overly focus on products over experiences and need to better understand customer needs.
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Tesco plc
- 1. Tesco Plc Mission Statement: "value for customers, to earn their lifetime loyalty" which they do by becoming a "creator of brands" giving us, the customer better prices and a wider choice of products so as to encourage the customer to be more loyal and to return their time and time again to shop. Tesco Controls, Inc. experience and commitment ensures our customer's success. Vision Statement: We are Excellence in Controls and Systems Integration, because we own it! Tesco'smain vision also includes being the most valued supermarket not only to the customers who use their stores but also to the community in which it is based and to be as strong in all areas of selling as they are in the grocery department and to be an outstanding retailer both in store and online SWOT Analysis: SWOT is an abbreviation that is interpreted as strengths, weaknesses, opportunities and threats related to businesses. The following illustrates the main points of Tesco SWOT analysis STRENGHT WEAKNESS OPPORTUNITIES THREATS
- 2. Strength 1. Leadership position in the UK 2. Effective online operations 3. Club card as an effective consumer information tool 4. Strong property portfolio Weakness 1. Weak financial performance 2. Serious damage to the brand image due to commercial income scandal in 2015 3. Reliance on the UK market 4. Diminished employee morale Opportunities 1. Pursuing international market expansion strategy 2. Increasing presence in financial services industry 3. Increasing non-food retail range 4. Enhancing the effectiveness of the marketing strategy Threats 1. Inability of the new leadership to turn over the business 2. Inability to sustain cost leadership competitive advantage 3. Currency fluctuation 4. Emergence of new ethics-related problems