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Businesses Competitive Strategies
Wal-Mart and Tesco
Explain why the strategies, which they have chosen, are appropriate and describe the capabilities and competencies, which would be required for each of the two business units?
Wal-Mart strategy to maintain low prices has resulted coveted success comes and the eventual use as a cost advantage of increasing its stock volume. This has resulted in low costs and increased prices. This cost-oriented focus has been logistically useful. The company is leading the path of developing sophisticated procedures that drive down the cost of logistics early enough compared to other companies. Wal-Mart has enhanced these capabilities and systems in regions all over the country to a point that it is impossible to slow down or stop the rural-based chains (Langabeer & Napiewocki, 2011). This strategy has enabled different markets to have access to products produced by Wal-Mart: they can easily create new services and products. The clear idea of distinctive brands focused on identified market segments is part of Wal-Mart's core capabilities and competencies: they can enter into the non-food and food retailing markets. With the difficulty of being imitated by competitors, the company's core competencies are competitively unique. This indicates that product differentiation is essential. For instance, the company has received recognition as the best food retailer company in the U.S. (Barrar, & Gervais,...
The company's management structure is based on an efficient design, which enables it to engage in the elimination of regional offices and operations based at home. Wal-Mart operates on an efficient structure of management that enables them to do away with their regional offices (Rainer & Cegielski, 2011). They plan and carry out all their operations from their home office. Using this structure, Wal-Mart has saved billions of dollars every year. When the company engages in combining structure, systems, and sales, driving traffic through convenience and strategic location of store, it attains oiled and highly effective company that cuts costs to a minimum. This is then transferred to the end consumer thus fulfill the company's strategy (Hoffman, 2000).
Tesco has employed the differentiation strategy providing products and services with unique features thus adding value to the customer. The company has created brand loyalty in their products and services thus the inelastic prices to the end consumer. Volumes of technology offerings, product, customer service, and special features are the popular strategies if attaining differentiation. Tesco has pursued dual strategies of differentiation and cost leadership that has resulted in the increased attention on quality customer service. The company's dual strategy is revealed…
Success/Growth
multi-brand sector of retailers
According to the GE matrix, Tesco and Wal-Mart received an assurance of government support for grand entry into multi-retailing countries. The companies received the assurance from the heads of Industry and Commerce ministry during an annual global forum on economic (Gottschalk, 2007). The future of Wal-Mart is bright because it is pursuing studies on the conditions before they make the entry in the new retailing markets. On the other hand, Tesco is seeking clarifications
Corporate Mission As the largest mass merchandiser in the world, Wal-Mart's work in supply chain execution, research, and policies defines best practices for the broader high volume retailing industry worldwide. Wal-Mart is comprised of three operating segments including the Wal-Mart stores, Sam's Club and the International Stores. The typical Wal-Mart discount store as 50 departments or more and a few are offering groceries in addition to apparel, fabrics, stationery and books,
Tesco is one of the world's most eminent chains of stores in the international food retail services that started as small scale domestic retailer and with its sustainable growth strategy, emerged as an international corporate giant. Tesco's operations adhered on the lines of sustainable strategic management that marketed itself with a strong sense of community service and socially responsible business practices. Tesco, instead of aggressive investments, penetrated international markets by partnering
TESCO is a transnational grocery and all-purpose merchandise dealer with its headquarters in Cheshunt, United Kingdom. It is among the three largest retailers across the world, coming third after Wal-Mart and Carrefour, when measured in terms of revenues. It is also the second largest, coming second to Wal-Mart when rated in terms of profits. It is the leading grocery distributor in UK and has multiple stores in fourteen countries across
Tesco PLC: Success and Future Products and Services Offered Business Expansion Cultural Dimensions Location Factors Tesco's Future (Porter's Competitive Model) Suppliers' Bargaining power Buyers' Bargaining Power Possible Entry of Competitors Substitutes' Threat Extent of Rivalry Tesco PLC is a UK-headquartered general merchandise store, with outlets in eleven other countries. Tesco is the largest of its kind in the United Kingdom, and only second to Wal-Mart, in the world. It began as a small group of stalls in 1919. The name 'Tesco'
Tesco PLC Case Study Tesco is the third largest retailer globally behind Wal-Mart and Carrefour, and as of March 2011, operates 4,811 stores across 14 countries including Asia, many European countries, UK and the U.S. Tesco is also the leading food, sundry and grocery retailer in the UK and has established itself as the leading provider of ancillary services through the retail channel to Western Europe (Hackney, Grant, Birtwistle, 2006). Tesco
NetJets The two primary attributes that NetJets relies on are convenience and quality, including safety of the jet aircraft (Infanger, 2007) from maintenance through its operation. The following is a graphic of these two attributes relative to competitors. NetJets Comparison Quality vs. Convenience TARGET MARKETS NetJets segments its markets geographically with NetJets U.S. And NetJets Europe being the primary segmentation criteria (Salter, 2005). This geographic segmentation is based on the needs for logistics to