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Since then, Tesco has come a long way and has faced many changes in its corporate strategy.
There are certain features of Tesco PLC which help in its differentiation from other retail giants. First is its 'inclusive offer' which has helped Tesco to appeal to all segments of markets thereby attracting customers from all groups of incomes- upper, medium and low and hence make it a one-stop shop for a an array of commodities.
Second, Tesco has propagated use of its 'own-brand products' and thereby made the best of efforts to overcome reluctance faced by customer in purchasing own-brands, as they are considered to garner more profits for a supermarket. Thirdly, one of the key features of Tesco's policy is 'Customer Focus' which is put into effect by shifting focus from 'maximization of shareholder value' to have an unambiguous focus on customer service as the top aim of the company, thereby also making higher profits.
Home Market- Tesco focuses on the core UK business which involves grocery retailing in its home market. It is also looking at expanding by making a move into the convenience-store sector which is an idea otherwise shunned by supermarkets.
Non-food business- In 2006, Tesco had successfully managed to become the largest non-food retailer in the UK. ...
Retailing services- Going one step further, Tesco is also into services like personal finance, telecoms, and other utilities. It has managed to fight competition in these fields by entering into joint ventures with the big players thereby increasing its customer base and brand strength.
International - In 1994, Tesco started to expand internationally and by February 2006 nearly a quarter of its sales were a result of its international operations. Its major developing markets are present in Central Europe, Far East and the United States.
Future Scenario-1

The centre point of this future scenario is based on the assumption that Asda, the second biggest retail store in U.K. and a subsidiary of Wal-Mart, the world's biggest retail store, takes over Tesco.
At present Tesco is the lading retail store in U.K. with a market share of about 30.6%, more than double as that of its closest competitor Asda.

Market Share (%)
Source: TNS (2006)

If Tesco looses out its market share to Asda ,owing to critical policy changes by Asda then in the face of such competition, Tesco would have to critically examine its priorities and hold on to its customer base. According to extrapolation of the current scenario, the probability of such a case to take place is very less. However, if Wal-mart focuses more on the functioning of Asda giving out its necessary skills and experience, this could happen in a matter of 5-7 years.

HRM implications
This would mean critical changes in the HR management of Tesco. It would have to undertake various measures in order to fight the ...Show more
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In 1929, Jack Cohen started the first store of Tesco PLC, which has since then, become the largest British retailer by both, domestic market share and global sales. This international grocery is the world's fourth-largest retailer, and now also specializes in consumer electronics, discount clothes, consumer financial services, , internet service, consumer telecoms and selling and renting out DVDs etc.
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