Presented byEric Geffre

Mitch HughesWenshu WangMengqiu Yan

Agenda Company Analysis-Mengqiu History-Mitch Competitor Analysis-Wenshu SWOT Analysis-Mengqiu Industry Analysis-Mitch Global operations-Eric Recommendations-Eric

Company Analysis 2,800 branch stores across 14 countries and

regions Non-food products

Sports equipment, kitchen utensils, etc.Own label products (ex. Cherokee)E-commerce business (Tesco.com)

Tesco cont., 5 types of stores in the UK

Tesco Extra StoresTesco StoresTesco Express StoresTesco Metro StoresOne Stop Stores

Tesco is mainly in the form of joint ventures outside UK

Tesco History Founded in 1924 by Jack Cohen Opened small store in Edgware, London National food store chain in the 1970s Took over 40 Hillards supermarkets in 1987 Surpassed Sainsbury to become largest UK retailer in

the 1990s Now world’s 3rd largest grocery retailer and 59th on

Fortunes global 500

Competitor Analysis Wal-Mart

Carrefour

Metro AG

Small local retailers

Wal-Mart In 1962, Sam Walton, in the USA. Largest retailer in the world: 6,796 stores in 14

countries. “Always Low Prices” In 1999, ASDA ( the second, in the UK) In 2007, bid for the Sainsbury( the third, in the

UK) Tesco’s Fresh & Easy in the USA

Carrefour In 1959, Marcel Fournier and Louis Defforey,

France, “crossroads” “High-Low Price”, hypermarket

NO.1 in China’s market

Tesco Carrefour 11 stores

in Czech Republic &

4 stores in Slovakia

6 stores in Taiwan

&€ 57.4 million

Metro AG

In 1964, Otto Beisheim, Germany

Cash & Carry, commercial customers

Bad performance in China’s market

No.1 in Eastern Europe market

Small Local Retailers

Daily grocery

Popular in Asia, especially in China

Example: Seven-Eleven

A small shop in Korea

A small shop in China

Seven-Eleven in Japan

Strengths Strong brand image

“good, better, best” Partnership strategy

As a partner with Le Gou in China Customer service

“Every little helps” Clubcard

Performance of Tesco.com Largest online food market

Weaknesses High dependence on UK

76% of total revenue from the UK market Low returns

Opportunities Green Consumption

Low carbon economyRenewable materials

Non-food market

Threats Intense Competition

Wal-Mart, Carrefour, and Metro (international market)

Asda, Sainsbury, and local retail stores (UK market)

Increasing labor wages in UK

Industry Analysis Food retail industry

SupermarketsHypermarketsFood specialistsDiscountersOther

Industry cont., Increase in 2001 Decrease in 2002 Causes

Energy costsProperty taxesTransportation prices

Industry cont., Food retail industry in Europe

Industry cont., Environmental management program

Tesco’s environmental program Employees and community Recycling and waste management centers Reduce energy consumption Bio-fuels

Global Operations Entered international market in 1994 First international store in Hungary Poland, Slovakia and Czech Republic followed Entered Ireland in 1997 Entered Asia for first time in’98 in Thailand Followed by South Korea, Malaysia, Japan China in 2004

Global Operations cont., Tailors stores to local cultures Extensive use of local resources

Only 100 of 100,000 international employees are ex-patriots

Multi-format stores

Global Operations cont., Operates 87 stores in Hungary

Market leader Largest foreign investor

Has 105 stores in Poland 13 acquired from HIT Also the market leader

Operates 72 stores between Slovakia and Czech Republic Most stores are smaller formats

Global Operations cont., Tesco runs 91 stores in Ireland

Market leader Has 8 stores in Turkey Entered Thailand in 1998

Purchased Lotus chainOperates 219 storesVery successful with multi-formats

Global Operations cont., Very successful in South Korea

Operates 62 stores, 12 were acquired from Aram-Mart 111 stores are located in Japan

Purchased Tanekin business to help grow organic market Entered China in 2004

Now has 39 stores Area of concentration for Tesco

Global Operations cont., Opened 238 stores internationally in 2006 Helped grow international sales by 40.7% over

2005 sales

Recommendations Focus on brand

Don’t focus on price competition Look to offer more unique products Become more environmentally conscious Continue to develop overseas market

Have greater percentage of sales come internationally Focus heavily on Chinese market

Conclusion Tesco is continuing to establish brand around

world In a competitive industry with strong

competitors Continuing its global expansion Will have to evolve to be successful

Any questions?