Article tescos

Article tescos

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  This journal is© Task 2.1-Blogger J.C.Suddaby Receiv ed 26th February 2015 http://www.tesco.com/ Competitive Factors (Tescos) Focusing on the competitive factors of the organisation, alongside their structure. ‘Tesco was founded in 1919 by Jack Cohen from a market stall in London’s East End. Over the years our business has grown and we now operate in 12 countries around the world, employ over 530,000 people and serve tens of millions of customers every week.’ (http://www.tescoplc.com/index.asp?pageid=11) Tescos has innovated and adapted its stores and is now recognisable globally, being an equally big supermarket as an E-tailer Tesco is a PLC An organisation uses competitive factors to judge their position in the market and industry. These factors they use are; the economy, trends in the market, number of competitors, and changes in the consumers. Firstly, the economy currently is lower than the October- November months, as the Christmas period is over and the consumers have less disposable incomes than previously. However, the UK has recently come out of a recession and has increased since 2012.But other competitors have arisen recently, such as Aldi and Lidi, offering lower prices, which is attracting a large number of Tescos customers. Causing a 62.3% (from 75% in 2011) decrease in sales. Tescos recently released a statement claiming a ‘250m profit overstatement’, causing employees at management level, to lose faith in the organisation, as they are no longer considered as the supermarket giant. Secondly, Tescos have used the trends in the market effectively. Suiting the needs of their customers well, providing a large quantity of goods, from electrical goods to food supplies. They have also used the fact they sell clothes to their advantage. Changing the style and range of this department, to match the current trends and interests in the fashion industry. F&F has been signed by Gok Wan, which helps endorse their range, being a recognisable fashion designer. Thirdly, Tescos, although they have struggled to maintain their popularity through competitors, they have a competitive advantage, as they are offering home delivery of goods and having their organisation as both a supermarket and an E-tailer. This of course offers convenience to their customers in comparison to visiting the stores personally. It is also allows them to offer lower/competitive prices, as less expense would be needed on the rent of premises. In terms of the location of the supermarket, Tescos have numerous elements to consider. Such as the legal regulations involved. A retail giant, such as Tescos, can’t open their store where they please, they have to consult the government, and there are government legislations in place, which organisations such as Tescos have to follow. When considering the location, as Tescos is a supermarket giant, they need to ensure they pick a populated location to attract the right mass audience. The rent of the premises is also a consideration; however Tescos may not need to take this as seriously as some of other smaller retailers, as their capital is a considerable amount. The location of a retailer is determined by not only the cost of the construction of the store, but the current trends and interest in the market. Along-side the current economic climate. Bibliography  http://www.tescoplc.com/index.asp?pageid=  https://www.google.co.uk/search?q=tescos&safe=active&espv =2&biw=1034&bih=875&source=lnms&tbm=isch&sa=X&ei= BOruVJ6EGKLP7gawjIGwDw&ved=0CAgQ_AUoAw&dpr= 1#imgdii=_&imgrc=wg0n6ov6UQQ- GM%253A%3BK2FhdfFKYFDaDM%3Bhttp%253A%252F %252Fwww.tescoplc.com%252Fwatford%252Fimages%252F tesco.jpg%3Bhttp%253A%252F%252Fwww.tescoplc.com%2 52Fwatford%252F%3B448%3B151  http://www.rsc.org/Publishing/Journals/guidelines/Auth orGuidelines/AuthoringTools/Templates/word.asp
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  ARTICLE Journal Name 2| J. Name., 2012, 00, 1-3 This journal is © The RoyalSociety ofChemistry 2012