Tesco Plc Strategy Analysis Coursework Example | Topics and Well Written Essays - 750 words

Tesco Plc Strategy Analysis - Coursework ExampleIt also operates financial institutions as a joint venture with the royal Bank of Scotland (Data Monitor, 2004). Mullins (2010) says that a marketing dodging primarily focuses on efficaciously allocating and coordinating marketing resources and activities in order to accomplish firms objectives within a peculiar(prenominal) product market (Mullins & Walker, 2010). The critical issue that concerns the scope of a marketing strategy is specifying the target market(s) for a particular product or product line (Mullins & Walker, 2010). This is followed by the motivation to seek competitive payoff and synergy through a well-integrated program of marketing mix that is custom made to the postulate and wants of authorisation customers in the market segment (Mullins & Walker, 2010). Michael Porter identifies three generic strategies and these include the cost leadership strategy, the specialisation strategy and the focus strategy (Mullins & Walker, 2010). These strategies argon based on strategic scope and strategic effectuality of a firm. The strategic scope is used to mean market penetration while strategic military unit is used to mean the firms sustainable competitive advantage (Mullins & Walker, 2010). Tesco uses the cost leadership strategy in its operation. With this strategy a company aims at becoming the lowest-cost producer in the industry (Stephane, Girod, & Rugman, 2005). It is a strategy that is often associated with large-scale businesses that offer generally standard products that comprise of little differentiation and are perfectly acceptable to majority of the market customers. This strategy is aimed at draw ining market share by irate costs so that a firm can offer lower prices and in the process gain market share (Stephane, Girod, & Rugman, 2005). High volume is leveraged to create low costs by getting the outstrip prices from suppliers and more efficiently utilizing fixed costs. In order for any company to use this strategy it must(prenominal) be cost conscious in every aspect of the business (Kim, Nam, & Stimpert, 2004). This strategy on that pointfore is characterized by tight budgeting, elimination of waste and thin personnel staffing. Scholars agree that this strategy is often adopted when there are many providers, growth is flat and providers are trying to steal the market share from for each one other by lowering prices (Kim, Nam, & Stimpert, 2004). Last year in September Tesco began a new strategy where it began to put its focus on permanent low pricing as opposed to its previous particular(prenominal) price promotions. This was as a result of its losing a great percentage of its market share to its competitors much(prenominal) as Sainsbury, Asda and Wal-Mart (Poulter, 2011). Market segmentation refers to the process of dividing the total market for a product or supporter into groups with similar needs such that each group is likely to respond favorably to a specific marketing strategy (McDonald & Dunbar, 2004). There are many variables to which a market can be segmental and these include the following behavioral, demographic, psychographic and geographic segmentation. Behavioral segmentation is a strategy based on customers needs and subsequent reaction to those needs or towards the purchase of intended product or services (McDonald & Dunbar, 2004). demographic segmentation considers aspects such as age, gender, education, income, occupation, size of the family etc. psychographic segmentation is all about diving tribe according to their lifestyles and values and how