Presented by
Eric Geffre
Mitch Hughes
Wenshu Wang
Mengqiu Yan
Agenda
Company Analysis-Mengqiu
 History-Mitch
 Competitor Analysis-Wenshu
 SWOT Analysis-Mengqiu
 Industry Analysis-Mitch
 Global operations-Eric
 Recommendations-Eric

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)
Tesco cont.,

5 types of stores in the UK
 Tesco
Extra Stores
 Tesco Stores
 Tesco Express Stores
 Tesco Metro Stores
 One Stop Stores

Tesco is mainly in the form of joint ventures
outside UK
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
Competitor Analysis

Wal-Mart

Carrefour

Metro AG

Small local retailers
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

Carrefour
In 1959, Marcel Fournier and Louis Defforey,
France, “crossroads”
 “High-Low Price”, hypermarket


Tesco
Carrefour
6 stores
in Taiwan
&
€ 57.4 million
11 stores
in Czech Republic
&
4 stores in Slovakia
NO.1 in China’s market
Metro AG

In 1964, Otto Beisheim, Germany

Cash & Carry, commercial customers

Bad performance in China’s market

No.1 in Eastern Europe market
Small Local Retailers

Daily grocery

Popular in Asia, especially in China

Example: Seven-Eleven
A small shop in Korea
A small shop in China
Seven-Eleven in Japan
Strengths

Strong brand image
 “good,

Partnership strategy
 As

better, best”
a partner with Le Gou in China
Customer service
 “Every little helps”
 Clubcard

Performance of Tesco.com
 Largest
online food market
Weaknesses

High dependence on UK
 76%

of total revenue from the UK market
Low returns
Opportunities

Green Consumption
 Low
carbon economy
 Renewable materials

Non-food market
Threats

Intense Competition
 Wal-Mart,
Carrefour, and Metro (international
market)
 Asda, Sainsbury, and local retail stores (UK
market)

Increasing labor wages in UK
Industry Analysis

Food retail industry
 Supermarkets
 Hypermarkets
 Food
specialists
 Discounters
 Other
Industry cont.,
Increase in 2001
 Decrease in 2002
 Causes

 Energy
costs
 Property taxes
 Transportation prices
Industry cont.,

Food retail industry in Europe
Industry cont.,

Environmental management program
 Tesco’s
environmental program
Employees and community
 Recycling and waste management centers
 Reduce energy consumption
 Bio-fuels

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

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
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
Global Operations cont.,

Tesco runs 91 stores in Ireland
 Market
leader
Has 8 stores in Turkey
 Entered Thailand in 1998

 Purchased
Lotus chain
 Operates 219 stores
 Very successful with multi-formats
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
Global Operations cont.,
Opened 238 stores internationally in 2006
 Helped grow international sales by 40.7% over
2005 sales

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
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

Any questions?