Case Tesco

Henry: Understanding Strategic Management New hybrid tries to flirt US shoppers By Johnathan Birchall Published: November 5 2007 02:00 | Last updated: November 5 2007 02:00 Genea Nosik lives a few blocks away from the new Fresh & balmy neighbourhood market on Florida Avenue in Hemet, California. after(prenominal) the doors opened at the end of last week, the mother-of-four pronounced herself delightful with the clean, nice store, and said she would be back. Its close and satisfactory and I could stop there to get something to cook for dinner after work, she says. Tesco, the UK supermarket group, is hoping a lot more US shoppers go out agree with her verdict. It plans to open 250 such stores by the end of succeeding(a) year and is spending £250m ($522m) a year in the US. rough of this is going on a vast distribution vegetable marrow and its own truck fleet to supply hundreds of similar stores in California, Nevada and Arizona. As the retailer faces a saturated home market and growing concerns over its dominance, the US presents Tesco with the prospects of a second era of dramatic growth. Sir Terry Leahy, chief executive, has said the US agate line could eventually equal its $35bn UK sales. Tescos international businesses in Europe and Asia produced $11bn in sales last year.

Tim Mason, the head of Tescos Fresh & Easy operation, proclaimed last week that the stores would pursue an everyday low set strategy, keeping prices on basics such as take out and sugar as low as possible instead than using promotional price cuts, coupons, or the loyalty cards that he himself championed in the UK. But Fresh & Easy impart not compete on price alone, as it delivers a radically new convenience format, with stores that are a cast of the size of the traditional US supermarket, located close to where population live. The closest existing model for Tescos 10,000 sq ft stores is Trader Joes, the German owned gourmet store that like, Fresh & Easy, depends heavily on a limited selection of its own-label goods. OXFORD H i g... If you destiny to get a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .