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.
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. ...