Tesco Executive Summary

Executive summary-

The following Report is done for Tesco stores (Malaysia). Tesco is formerly a leading retail chain in the United Kingdom. It is British’s largest multinational grocery store; with its head office is England. Tesco was founded in 1919 by jack Cohen. In terms of earnings it 's the third biggest retailer in the world and when it is considered by revenue it stands in the fifth place in the world. It has its stores across Asia and Europe.

The main object of Tesco is to create customers with their loyalty and give life time value services .They stand as a modern and innovative organization which would handle changes in the market and adapt themselves to the current circumstances accordingly. This statement covers all the topics

Customers are always attracted to low prices, when the products available are low pricing comparatively customers would easily choose them. To keep the consumers involved Tesco should come up with diverse promotional activities.

 Bargaining power of suppliers: The low measure of bargaining power shows in the market of Tesco Malaysia. Suppliers are mostly attracted to the big grocery food retailers. Since the position of Tesco in the market has always been inclined, the negotiations would be positive as they would receive the lowest prices from the suppliers. As suppliers don’t want to lose their contract with the big stores they would go for huge quantities for supplies with low pricing.

Competitors to Tesco Malaysia:-

Tesco has a rigid competition locally, one of them is Giant hypermarket; this market has been cheapest store place in Malaysia to shop everyday groceries and products besides

Its motto is low price every day. Pricing was the vital key factor for Tesco. Low prices were made to order to increase in sales and it was not a strategy but an everyday deal which attracted the customers.

 Growth strategy - Tesco has made beneficial schemes as the green card and club card these helped the consumers engage and trust the organization. Club card membership scheme has allowed to customers to save while shopping. Tesco club card has managed to be winning among the customers. Whereas green card is used to get points when customers opt out of purchasing bags or re use the bags. Tesco has achieved customer’s loyalty through such programs. This made them get their own brand value and trust in the brand has increased.

 Differential pathways - Tesco has entered into non food business, technology as smart phones, and finance sectors. Many supermarkets have attempted to expand in other areas, but Tesco has been quite successful. Tesco stores Malaysia is making it easy for customers to do hassle free, convenient and easy banking. It has collaborated with RHB banking group. This shows another important factor for Tesco for expanding into financial sector in Malaysia. The first Hypermarket in Malaysia to provide banking to