Discuss about the Marketing Performance of Tesco Limited.
Tesco is one of the retail-based companies running well from the era of British Empire. Jack Cohen founded the company in 1919 in Welwyn Garden City, England. Now the company is the third largest retailers into global market segmentation by its profit nature as well as it is the fifth largest company by its revenue nature in the world. In 12 countries the company has its stores including Asia, Europe, Ireland, Malaysia and the UK. The Company is expanding rapidly and having over 100 stores in 1939 within the whole country. In 2015, it made a market capitalization around £8.1 billion approximately. It is the largest grocery retailer in the country which has all grocery items as its products in the market. The company has included 35% grocery products and rests other merchandised products. Tesco must have to think about the improvement of an action plan to implement the proper performance of the company. The company has to improve their technical and logical skills consistently to get the better result of the business into target market segmentation (Dinkhoff 2013).
Product of the Company
Tesco has grown up from 500 stores in the 19th Century to 2500 stores in the 21st Century. It established its first supermarket in the year 1956 in Maldon. In the year 1995, Tesco introduced a loyalty card and named as its own brand "Clubcard" then internet services started by Tesco in 1996. Now the company is growing consistently, and profit is increasing every year. The company's products include footwear, apparel, perfumes and all relates groceries and merchandised product across the countries. The company has a market share of 28.4% in the market of the UK because the head office of the business is situated in the United Kingdom. Now the company is considered as London Stock Exchange (Ali and Alam 2015).
Performance and growth of the company
Nowadays, Tesco is one of the largest and international retail businesses that is running in 12 countries with 2500 stores into worldwide.
Products and Services: The Company's products are selling into global market segmentation which satisfies the needs of the society's people. It is the largest retailer globally which provides clothing, electronics, perfumes, health and car insurance, financial service, internet service, telecoms and grocery products to a great segmentation (Wood 2016).
Better Resources: The Company provides better products resources to the people of the country. It has a wide range of effect in the target market segmentation. There are two segments of the company for doing business internationally such as Tesco superstores and Tesco Express stores which are located in the UK headquarter of the company. There is a banking arm of the company called “Tesco Personal Finance." The company also produces laptop and tablet to provide best resources to the customers (Wrigley 2016).
Competition: The Company faces competition in the market to provide more goods and to increase the profitability across the country. The market is perfectly competitive now, and the company faces competition to know the current affair in the market segmentation. If the company does not face competition, it cannot grow up, and profit may reduce (Coe 2016).
Strength and Weakness: To implement the IT and IS performance of the company, it must know the strengths and deficiencies in the market. The company is having strengths and weaknesses because they are running into the worldwide market. The company fulfills the gap of vulnerability to make a better resource for customers (Targett and Grimshaw 2013).
Problems and challenges faced by CIO
Though the company is running well in around 12 countries, it has some major problems within the economy which affect the effective performance of the company in every country. The company must have to run properly without facing any difficulties. The problems may cause the profit of the company. These are most significant problems which are as follows;
Differences in Price: It is the first fundamental problem of the company by which it faces different price strategy within the economy. The company has a different price for its various customers to sell the product in the market. Some products of the company are little luxurious. For this, every people of the society cannot buy the business's products. As a result, the company is facing the problem of price differentiation (Rigby 2015).
Low Working performance: Sometimes the company's performance may slow in the market because the products are luxurious and every people cannot meet the company‘s products accordingly. Customers are the main ingredient for the company's products. If people are not buying the company's products, it may suffer from the loss. It shows the negative working performance of the company within the country (Haddock-Millar 2015).
The problem of Integration: Sometimes Tesco faces the challenge of integration which indicates the adverse effect of the company across the country. As the company is running in 12 countries, it has to provide better products and services within the countries. If customers are not satisfied with the company's products, it may face the problem of integration (Ntani and Baird 2014).
Branding Process: Though the company is running well into worldwide market, the branding process is one of the issues of the company. The company wants to increase the business into another country where it is not operating. If the company does that, it may increase the margin of profit across the whole countries. The company was not so developed in the 19th Century. However, now it has the biggest brand in the world and spreading with 2500 stores within the countries (Dinkhoff 2013).
Luxurious Products and services: Some products of the company are little luxurious. For this, it is not possible for every product to buy the products of the company. It causes the negativity of the company in the country. Though the company has some fewer cost products, it has some expensive grocery products across the country (BOAKYE and OWUSU 2012).
Manufacturing Problem: Though Tesco is considered as London Stock Exchange, it is having different manufacturing process across the country because the company’s products are different from another company by its nature. At the time of implementation, companies face the problem of manufacturing process within the country (Cooper and Cummins 2014).
Competitive Advantage of the Company
Production of services: The Company measures the function of production and removes the fundamental problem of the company within the country. If the company provides better goods and services to customers, these issues may reduce accordingly from the country. The company has to increase its production for making better performance within the economy (Askew 2016).
Decision Making: The Company must have to maintain some peaceful making of a decision in the current market segmentation. Decision making is one of the primary tools of the success of the company. To make better marketing growth, the company must have to make a better decision making across the country. Decision making includes some departmental working performance of the company (Sheppard 2016).
Trends Measurement: The Company must have to measure its value of trend in the marketing evaluation to remove the above problems of the company within the company. The company measures its working performance by produce sufficient goods in the market. Most of the customers are needed expensive products. For this, it is necessary to maintain the trend value of the business across the country (Black and Ntani 2014).
Manufacturing Productivity: The company needs to keep some productivity of manufacturing process to reduce the problem of production. The company needs to hold some departmental training and program to avoid the issue of the production process of the company. This manufacturing productivity includes the overall production of the company (Black Moon 2014).
Availability of Data: Data availability is one of the necessary critical measurements to remove the problem of the company. Data should be easily available for the process, and it should take at a particular location. Tesco must have to see the quality and availability of data for the better growth and development across the country. The company depends on efficient Information Technology system. The failure of IT system in the company means failure of company's growth into worldwide market segmentation (Malik 2015).
Joint Venture: The Company has the competitive advantage of the joint venture in the market which is the major challenge for the growth of the company. The strategy of Tesco International Expansion is responding the needs to be sensitive to a general expectation of other countries by entering into a joint venture with General partners in that country (Park and Harris 2014). As a joint venture, Tesco includes the following market such as China, Japan, India, Malaysia, Poland, Republic of Ireland, South Korea, Thailand, USA, Turkey and UK. In all these countries, the company is running well and making profit internationally.
Company's Impact on Business
Now the company is well growing into global market segmentation. It is impacting the other business in the market. Some companies are doing business with same products. For this, the company is facing difficulties to participate in significant market segmentation as well as competition is very high in the market. The CIO of the company manages the business environment across the country. It has now a best retail company in the world. The company has a better resource to administer the efficiency and integrity within the country. The company runs on Information Technology basis where it can make more profit within the country (Ali 2015).
From the above discussion it has been concluded that the company is running well into worldwide market segmentation and achieving some common goals and objectives. As the company is providing retails goods to the customers, it is facing some situational challenges for the best growth into worldwide market. Tesco is based on IT System Company which is running internationally in 12 countries with 2500 stores in the world. Now the company is impacting the business performance in all countries where it is operating. In most of the cases, the company produces retail goods, but sometimes it is necessary to generate large segmentation products when the market becomes competitive in the country. It has been evaluated that the company has a real impact on the business strategy where it is facing competition in the market of the business world. The company must have to maintain its manufacturing productivity in the country. It is trying to maintain efficiency properly as well as trying to increase working performance in coming days. If the company follows these business strategies properly, it may lead to the success of the company into target market segmentation. The company is now maintaining IT system efficiency as well maintaining the infrastructure of IT and sharing world class products to customers internationally.
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