Student of mm53I group Answers of the Case Study #1: Tesco


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Case 1


Student of MM53I group

Answers of the Case Study #1: Tesco

  1. Of course being the best and fixing the retail prices was advantage for Tesco. Why they didn’t do this. I think the most important point of this decide is having a go at servicing together. If Tesco chosen the other side they have had to try alone. By repealing Resale Price Maintenance Law they opened new doors for them. Now without this they are the first.

  2. In order to develop, you may think , they must had cut prices further , but it was impossible, because staff costs were much expensive and Tesco was trying to achieve goals with bulk purchasing. And there was another supermarket chain operation simultaneously that is related to their competitors. After that time they had to go another ways of being best like “subsiding the queue”.

  3. As you can see Tesco divided their brand to three categories. This is also type of innovation. “Value” type was special for cheap basic products, the “Tesco” brand was prepared for competition with other brands and the last “Tesco’s Finest”, which is specifically for luxurious products. This is like isolating some classes fro consumers.

  4. The difference between trading-stamps and loyalty card is that in trading-stamps system customers came for product and in loyalty card system they receive it by Tesco easily in bulk. The advantages for Tesco was infinite : how often they shop, where they live, what products they buy and so on, they were aware of every side of customers.

  5. This might be because Tesco was the biggest company of UK and was planning spread their business around other countries, for this reason they diverted this business. And also in order to be well-known they established special sale web site like Tesco.com I shared upward.

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