Tesco Case Study

Introduction

Tesco PLC is a British retailer that offers a variety of products in the category of groceries, financial services, telecommunication, and non-food items. It is currently present in parts of the world such as Europe, the United States of America, and South East Asia, with an estimate of 21,000 supermarkets and about a half a million employees. Over the years, Tesco's main brand has been foodstuff (groceries) but has included music downloads, clothing, utensils, and electronics among others in the near days. Tesco's marketing objectives have always been oriented towards promoting customer satisfaction and loyalty. Since the shopping methods for the groceries have changed to involve online shopping and business deliveries, Tesco has also adopted these majorly to remain relevant in the retail market.

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The application of a PEST analysis and the Environmental Factors Impacting Tesco?

The PEST analysis looks at the business's political, economic, social, and technological environments of operation. On the political sphere, Tesco has to comply with employment laws on the hiring of different level of skilled personnel. The trade blocks such as the World Trade Organisation (WTO) and the European Union have also promoted the expansion of Tesco's market network. Economically, Tesco has had to grapple with uncertain effects of the recession in the United Kingdom from 2008. Interest rates had to be reduced leading to reduced unemployment rates that have culminated into an unexpected increase in purchasing power hence a boom for Tesco. Socially and culturally, since the majority of the United Kingdom's population is made up of age, the consumer volume drops, and this poses a serious threat to Tesco's sales on fast-moving eateries. The elderly population, however, prefer online shopping, to the advantage of the retailer. Finally, Tesco has to keep up to the most recent technological advancements. This helps satisfy the growing wants of the increasing techno-savvy population as well as compete favorably with its competitors.

The First three competitors of Tesco, and what are their advantages/disadvantages concerning satisfying the value proposition of their customers?

The three major competitors of Tesco in the United Kingdom can be said to be ASDA, Morrison's, and Sainsbury's. As at August 2015, Tesco had the largest market share of 28 percent followed by ASDA and Sainsbury's at 17 percent each. It is of great importance to reinstate the fact that the last two years have seen a sharp rise in new market entrants' hence more stiff competition. The competitors are banking on factors such as maintaining low prices, improvement of store layouts and online sales path to cater for the evolving needs of the shoppers, increasing of merchandise categories and the addition of nutritional value to the private label goods. These competitors have also heavily invested in technological advancement to improve their market presence and influence.

How Tesco grow without losing focus on its core customer as they look to maintain customer value, satisfaction, and loyalty?

To maintain the top ranking in the sector, Tesco has to tap into the available opportunities in the retail market sector. Among these are continued investment in market research and development, strategic acquisitions and positive lookout for global top drive market. The research will enable the retailer to innovate more consumer-friendly products hence delivering the desired quality while maintaining the customer loyalty and satisfaction. Moreover, the acquisition of more technology firms will enable the retailer to get access to technical services at a lower cost.