Question

can someone please answer my question ?

Tesco is a global grocery and general merchandise retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues (after Wal-Mart and Carrefour) and the second-largest measured by profits Tesco House, head office in Cheshunt, Hertfordshire. (after Wal-Mart). It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia, the Republic of Ireland and Thailand. Tesco opened its first store in Malaysia in May 2002 with the opening of its first hypermarket in Puchong, Selangor. Tesco Malaysia currently operates 49 Tesco and Tesco Extra stores.

Assume the role of a management consultant reporting to the CEO and Board of Directors at TESCO Malaysia, prepare a report based on the following questions below. In your report, address the following points:

1. Define the current strategic problems and opportunities faced by TESCO in Malaysia or in selected branches in Malaysia.

2. Analyze TESCO’s marketing and innovation strategy transformation designed to position the company on the cutting edge of consumer trends.

3. Evaluate TESCO’s strategy of developing healthy lifestyle or go green concept in Malaysia.

4. Compare and contrast the performance of TESCO with the nearest competitor of a kind in Malaysia.

5. Provide recommendations to management of TESCO on ways to improve strategically in Malaysia.

Answer 1

Solution:

TESCO being a formidable player in the global retail industry, already boasts of a high loyalty index and brand value.

After setting up the first hypermarket outlet in Puchong town of Petaling district, Selangor in Malaysia the store gained new customers and genereated considerable public interest. The first TESCO store in Malaysia was opened in the year 2002. The company's additonal Malaysian outlets are based in the following cities:

• Kuala Lumpur
• Perak
• Penang
• Kedah
• Negeri
• Sembilan
• Melata
• Johor
• Kelantan

Tesco Stores Sdn Bhd, Malaysia is a subsdiary of TESCO PLC. TESCO hypermarkets in Malaysia are known for off-the-shelf fresh produce, groceries and other household products. The leading brands owned by TESCO include the following:

1. Tesco
2. Tesco Everyday Value
3. Tesco Finest
4. Tesco Endorsed

Top competitors for Tesco in the Malaysian peninsula include 7-Eleven, Econsave, Carrefour, Giant, the Store, MYDIN and the recent entrant Aeon BIG (GROCERERS).

STRATEGIC OPPORTUNITIES

-> Tesco's biggest advantage over its competitors lies in its scale as the rivals are comparatively smaller in terms of scale and size of inventory.

-> Promotional campaigns such as the ongoing Seasons of Sakura also garner attention from potential customers. Customers ordering Japanese cuisine from the Tesco outlets are eligible to win a ticket to Japan.

-> An interesting product mix also adds to the viability of the brand

-> Another unique offering of Tesco includes an impressive list of food recipes made using Tesco products. This concept is not offered by competitors of the brand.

-> The company also acquired the Makro Malaysia company in 2006 and rechristened it as Tesco Extra.

-> Providing online grocery shopping as additional distrubution channels also aids the company to maintain the leading position.

-> The company offers additional discounts, coupons and other facilities to customers who enroll for Clubcard membership.

-> TESCO's go-green initiative recommends the use of biodegradable material for packaging.

Nonetheless, the enormous scale of Tesco brand is also a bit of disadvantage in the terms of time and pocket-friendliness. For instance, students with limited allowances are often in a hurry to pick up a quick-snack on the go. They do not have the luxury to browse through various segments of the hypermarkets. Instead, they prefer going to a smaller store such as 7-Eleven which offers reasonable snack options.

Therefore as a management consultant, a useful suggestion would be to open a chain of smaller retail outlets at places of commute for easy access of customers of all age-groups. This would definitely increase revenues significantly across Malaysia and help the brand to cement its leadership position in the retail segment.

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