TESCO in 2003


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Case Details:

Case Code : BSTA085
Case Length : 16 Pages
Period : 2003
Organization : Tesco
Pub Date : 2003
Teaching Note :Not Available
Countries : UK, Global
Industry : Retailing

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

Early History
By the 1920s, Tesco's founder Sir Jack Cohen had already begun to set up high street grocery stores in and around London. The Tesco name was used for the first time in 1929 in Edgeware, London...

Recent History
In the early 1990s, price and value for money began to drive food retailing in the UK. Tesco recognized that it could not simply copy its main rival J Sainsbury, the then leading retailer in the UK Tesco also had to compete with the discounters that had begun to set up shop...

Store Formats

Tesco had tried to grow by serving various market segments through different store formats. These included the Smaller Compact (neighborhood supermarkets), Tesco Metro (city-center store), Tesco Express (petrol forecourt), Tesco Vin Plus Drinks Superstore and Tesco Extra (hypermarket)...

Marketing

Tesco organized its products into categories. The selection was based on price, quality, service, innovation, the consumer's changing expectations and convenience, health and ethical issues. Tesco first began to diversify its assortment into non-food items through its 'Home 'n' Wear' collection but withdrew in the late 1980s, in favor of developing its fresh food range...

Operations

Until 1983, Tesco's suppliers delivered many of the products directly to stores. This type of delivery scheme later proved to be grossly inadequate as volumes increased. In addition, it did not facilitate standardization and quality control...

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