l in understanding how Tesco PLC is successful in gaining competitive advantage over its leading competitors in the marketplace such as Asda and Sainsbury’s. In order to determine the intensity of competition in the retail industry, the author of the report will implement the five competitive force frameworks along with segmentation strategies Tesco PLC has adopted pertaining to its target market. By identifying these strategies, the author will formulate certain recommendations for the management of Tesco PLC in order to capitalize on the opportunities available in the marketplace.
To achieve the objective of this report, the author of the report has used different theoretical models in order to understand the business level strategies of Tesco PLC. With the help of these strategic models and theories, the author will reflect the findings of the research activity by communicating the competitive positioning approach implemented by Tesco PLC in order to come over the intense competition provided by its rivals in the retail industry of UK. On the other hand, the findings of this research report would also communicate to the rivals of Tesco PLC, how they can gain competitive advantage by adopting counter business strategies.
The strategy analysis and the resulting recommendations are formulated keeping in view the long-term objectives of Tesco PLC and its rivals. Moreover, the focus of the recommendations will be laid on the changing business dynamics due to highly globalized business environment keeping in view the set of resources and competencies of the retail sector in UK. In order to increase readers’ understandability of the concepts presented in this report, the author will divide the strategic analysis into three parts. These are as follows:
Jack Cohen founded Tesco in 1919 by establishing a market stall in East London. In this manner, it can be asserted that Tesco is engaged in retail business for nearly a century in UK. Since 1919, Tesco PLC has been