Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan
Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.
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Transcript of Presented by Eric Geffre Mitch Hughes Wenshu Wang Mengqiu Yan.
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Presented byEric Geffre
Mitch HughesWenshu WangMengqiu Yan
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Agenda Company Analysis-Mengqiu History-Mitch Competitor Analysis-Wenshu SWOT Analysis-Mengqiu Industry Analysis-Mitch Global operations-Eric Recommendations-Eric
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Company Analysis 2,800 branch stores across 14 countries and
regions Non-food products
Sports equipment, kitchen utensils, etc.Own label products (ex. Cherokee)E-commerce business (Tesco.com)
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Tesco cont., 5 types of stores in the UK
Tesco Extra StoresTesco StoresTesco Express StoresTesco Metro StoresOne Stop Stores
Tesco is mainly in the form of joint ventures outside UK
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Tesco History Founded in 1924 by Jack Cohen Opened small store in Edgware, London National food store chain in the 1970s Took over 40 Hillards supermarkets in 1987 Surpassed Sainsbury to become largest UK retailer in
the 1990s Now world’s 3rd largest grocery retailer and 59th on
Fortunes global 500
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Competitor Analysis Wal-Mart
Carrefour
Metro AG
Small local retailers
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Wal-Mart In 1962, Sam Walton, in the USA. Largest retailer in the world: 6,796 stores in 14
countries. “Always Low Prices” In 1999, ASDA ( the second, in the UK) In 2007, bid for the Sainsbury( the third, in the
UK) Tesco’s Fresh & Easy in the USA
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Carrefour In 1959, Marcel Fournier and Louis Defforey,
France, “crossroads” “High-Low Price”, hypermarket
NO.1 in China’s market
Tesco Carrefour
11 stores
in Czech Republic &
4 stores in Slovakia
6 stores in Taiwan
&€ 57.4 million
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Metro AG
In 1964, Otto Beisheim, Germany
Cash & Carry, commercial customers
Bad performance in China’s market
No.1 in Eastern Europe market
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Small Local Retailers
Daily grocery
Popular in Asia, especially in China
Example: Seven-Eleven
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A small shop in Korea
A small shop in China
Seven-Eleven in Japan
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Strengths Strong brand image
“good, better, best” Partnership strategy
As a partner with Le Gou in China Customer service
“Every little helps” Clubcard
Performance of Tesco.com Largest online food market
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Weaknesses High dependence on UK
76% of total revenue from the UK market Low returns
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Opportunities Green Consumption
Low carbon economyRenewable materials
Non-food market
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Threats Intense Competition
Wal-Mart, Carrefour, and Metro (international market)
Asda, Sainsbury, and local retail stores (UK market)
Increasing labor wages in UK
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Industry Analysis Food retail industry
SupermarketsHypermarketsFood specialistsDiscountersOther
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Industry cont., Increase in 2001 Decrease in 2002 Causes
Energy costsProperty taxesTransportation prices
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Industry cont., Food retail industry in Europe
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Industry cont., Environmental management program
Tesco’s environmental program Employees and community Recycling and waste management centers Reduce energy consumption Bio-fuels
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Global Operations Entered international market in 1994 First international store in Hungary Poland, Slovakia and Czech Republic followed Entered Ireland in 1997 Entered Asia for first time in’98 in Thailand Followed by South Korea, Malaysia, Japan China in 2004
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Global Operations cont., Tailors stores to local cultures Extensive use of local resources
Only 100 of 100,000 international employees are ex-patriots
Multi-format stores
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Global Operations cont., Operates 87 stores in Hungary
Market leader Largest foreign investor
Has 105 stores in Poland 13 acquired from HIT Also the market leader
Operates 72 stores between Slovakia and Czech Republic Most stores are smaller formats
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Global Operations cont., Tesco runs 91 stores in Ireland
Market leader Has 8 stores in Turkey Entered Thailand in 1998
Purchased Lotus chainOperates 219 storesVery successful with multi-formats
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Global Operations cont., Very successful in South Korea
Operates 62 stores, 12 were acquired from Aram-Mart
111 stores are located in Japan Purchased Tanekin business to help grow organic market
Entered China in 2004 Now has 39 stores Area of concentration for Tesco
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Global Operations cont., Opened 238 stores internationally in 2006 Helped grow international sales by 40.7% over
2005 sales
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Recommendations Focus on brand
Don’t focus on price competition
Look to offer more unique products Become more environmentally conscious Continue to develop overseas market
Have greater percentage of sales come internationally Focus heavily on Chinese market
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Conclusion Tesco is continuing to establish brand around
world In a competitive industry with strong
competitors Continuing its global expansion Will have to evolve to be successful
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Any questions?