1. Presented by
Eric Geffre
Mitch Hughes
Wenshu Wang
Mengqiu Yan

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

3. 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)

4. Tesco cont., 5 types of stores in the UK
Tesco Extra Stores
Tesco Stores
Tesco Express Stores
Tesco Metro Stores
One Stop Stores
Tesco is mainly in the form of joint ventures outside UK

5. 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

6. Competitor Analysis
Wal-Mart
Carrefour
Metro AG
Small local retailers

7. 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

8. Carrefour
In 1959, Marcel Fournier and Louis Defforey, France, “crossroads”
“High-Low Price”, hypermarket
NO.1 in China’s market
Tesco
Carrefour
6 stores
in Taiwan
&
€ 57.4 million
11 stores
in Czech Republic
&
4 stores in Slovakia

9. Metro AG In 1964, Otto Beisheim, Germany
Cash & Carry, commercial customers
Bad performance in China’s market
No.1 in Eastern Europe market

10. Small Local Retailers Daily grocery
Popular in Asia, especially in China
Example: Seven-Eleven

11. A small shop in Korea
A small shop in China
Seven-Eleven in Japan

12. Strengths Strong brand image Partnership strategy Customer service
“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

13. Weaknesses High dependence on UK Low returns
76% of total revenue from the UK market
Low returns

14. Opportunities Green Consumption Non-food market Low carbon economy
Renewable materials
Non-food market

15. Threats Intense Competition Increasing labor wages in UK
Wal-Mart, Carrefour, and Metro (international market)
Asda, Sainsbury, and local retail stores (UK market)
Increasing labor wages in UK

16. Industry Analysis Food retail industry Supermarkets Hypermarkets
Food specialists
Discounters
Other

17. Industry cont., Increase in 2001 Decrease in 2002 Causes Energy costs
Property taxes
Transportation prices

18. Industry cont.,
Food retail industry in Europe

19. Industry cont., Environmental management program
Tesco’s environmental program
Employees and community
Recycling and waste management centers
Reduce energy consumption
Bio-fuels

20. 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

21. 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

22. 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

23. Global Operations cont.,
Tesco runs 91 stores in Ireland
Market leader
Has 8 stores in Turkey
Entered Thailand in 1998
Purchased Lotus chain
Operates 219 stores
Very successful with multi-formats

24. 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

25. Global Operations cont.,
Opened 238 stores internationally in 2006
Helped grow international sales by 40.7% over 2005 sales

26. Recommendations Focus on brand Look to offer more unique products
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

27. 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

28. Any questions?