Tesco Research Paper Example | Topics and Well Written Essays - 500 words

Tesco - Research Paper Example In 1997, Tesco set out a strategy to expand its core business. This later resulted in the establishment of online marketing initiative. It also set out to diversify its products and services, in existing and new markets. This strategy helped Tesco to penetrate the newer UK markets successfully, as well as Europe, Asia, and recently, the United States of America. One of Tesco’s business strategies today is to expand its UK market. This is its biggest business and there are more growth opportunities here. From back in 1997, Tesco has wanted to be the most successful international retailer. In 1997, the international business generated 1.8% of Tesco’s profits. This later increased to 25%. If their business plans succeed in the UK, it is probable that the same will even apply to other markets. It is however worrying how the shoppers in UK have lost trust in Tesco and instead prefer to shop from their competitors. If Tesco does not win back trust in their markets, then it ri sks, more major loses, as UK has been its largest market (Duff, 2006). Tesco needs new management, marketing, and business strategies, in order to revive its UK market. The fall of UK market has been growing gradually over the last five years, probably due to the founding of newer markets in the US and parts of China. In an Economist article, an anonymous author feels that, for Tesco to compensate the costs of running the new markets, it had to readjust their business operations in the UK. This involved reducing employee numbers, and lowering prices in order to attract more shoppers. The UK market was neglected as all efforts and attention were drawn on establishing the new overseas markets. Diversification is another problem that Tesco needs to address in order to regain root in UK. Apart from running food-and-drinks stores, it runs a law firm, a bank, among others. Therefore, Tesco