Saturday, August 24, 2019

The task for this assignment is to analyse a case study for a private Essay

The task for this assignment is to analyse a case study for a private sector or a public organisation of your own choice - Essay Example Having said this, the purpose of this paper is to first of all analyse the strategy adopted by Tesco in relation to product transportability", transferability of competitive advantage","Inter-firm transferability of resources", and the need to adapt to local market conditions in the following overseas markets (USA, Thailand, Malaysia, Japan and China). In the first section, using relevant analytical model, Tesco will first of will be diagnosed to know it sources of competitive advantage, thereafter, attention will be shifted to the need to adapt to local overseas markets in the United States, Thailand, Japan and China. Porters five forces framework was originally developed as a way of assessing the attractiveness (Profit potential) of different industries. As such, it can help in identifying the sources of competition in an industry or sector (Johnson & Scholes 2005, Brand 1963). The basis upon which this framework is built will serve in analysing TESCO Plc strategic capabilities. With thousands of different supermarkets in the United states with each of them being strategic players, Tesco will have to adapt to local values in the United States. The competition is going to be fierce, with Wal-Mart, currently being the market leader. Thus Tesco should pay attention on the four Ps, product price, promotion, and place in these markets (Charles 2007). Tesco has a pool of financial resources, reserves; managerial capabilities that can help the company cope up with competion. In the United States, Thailand and Japan, Tesco will have to adapt to local values through sourcing of local materials and resour ces, the recruitment of local staff. Management will have to think globally but act locally (Company 2007 Report). The company ongoing exclusive rights with suppliers, distributors and transporting companies should be replicated in these markets. In these markets, it will be difficult for local supermarkets to get up overnight and start operating at Tesco scale. Though there are potentials for the sector to attract potential competitors or new entrants, the situation is however difficult for new entrants to enter the line of business, because huge capital, and capabilities are necessary to support after sales services. In terms of technical expertise to get up overnight and open a grocery store that will compete with Tesco is not easy. More so, Groceries stores often strived at having an exclusive right with their suppliers (Cheng & Bolong 1993, Drejer 2002). These is the same type of relationship, Tesco will maintain with its suppliers in these markets. Suppliers and customers have a high bargaining power in these markets. Each grocery store strive at having unique items, others offer almost the same thing making customers and potential customers to base their attention on price, quality and after sales benefit

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.