Thursday, August 8, 2019
Strategy Managment Assignment Example | Topics and Well Written Essays - 2250 words
Strategy Managment - Assignment Example The organization should continue with its online business strategy as it will help to gain more competitive advantages. The organization should implement aggressive marketing strategies in BRICK countries to increase its global market share. Threats Intense industry competition and economic downturn can affect the business performance of Tesco. Tesco requires huge marketing and investment to sustain in the international market. Overseas market revenue may reduce due to competition or economic conditions. Price war between the competitors can affect the profitability and large client base of Tesco. External Analysis PESTEL Analysis Political factors The market revenue and performance of Tesco depends upon the legislative and political conditions and European Union of these named countries. For employment in the country, government supports foreign retailer companies to provide jobs from lower paid, and flexible to high paid and highly skilled jobs to the students and other workers. Ec onomical factors Economic factors can largely influence the cost, profits and demand. High rate of unemployment level is the vital factor for economy. Unemployment rate would significantly decrease the demand of goods and also influence the demand required to produce the goods. Tesco highest market share is in UK, if in case of slowdown of UK market would affect badly on the company. Social factors Current trends for customer are now bulk and one-stop shopping. The amount of non-food products to be sold is increased by Tesco. UK retailers such as Tesco is giving attention towards the services and value-added items because due growth of female works and ageing population.... This paper approves the changes in business environment world create need for new services and products. The strategy of product development must be considered by company when developing new products for existing market. It also necessary to focus on internal development of Tesco when new products are produces for existing market. The expanding and diversifying the product development of Tesco would help to create customer relationship. Tesco can create new product line depending upon the need of the customers. Tesco should consider focus on extent and nature of diversification. The company which provide better innovative service and products can have better competitive advantage. Due to this unique store Tesco can use premium prices. To sustain in this competitive market, Tesco should maintain optimum quality on their internal strengths by implementing technologically innovative outlets and retail stores. This essay makes a conclusion the expansion of the market and to increase companyÃ¢â¬â¢s revenue Tesco should enter into new markets like Japan and China. Survey shows that consumers in Asian markets have increased their spending and changing their trends towards retailing. This provides high opportunity for major supermarkets like Tesco. International alliance strategy should be used by Tesco. This can explained as entering in to the Asian markets by partnerships or joint venture. This will significantly provide huge market presence and large scale of economy. However, Tesco may feel it is high risk to be first mover depending upon the market complexity.