Tesco: Company Description, Market Analysis, and Industry Nature

Assessment 2
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Description of the company, its products/services and history..............................................3
Analysis of the market............................................................................................................5
Different market structure......................................................................................................7
Nature of the industry in which the company operates..........................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Business management can be defined as coordination and organising different business
activities in such a way so as to achieve the organisational goals and objectives. It is a useful
aspect within the company and allows it to manage the different resources in an effective
manner. As a result, the employees are motivated to perform efficiently and ensure that they are
committed to complete tasks that are assigned to them (Barry, 2017). Organisation chosen for
this report is Tesco, which is a British multinational retailer of general merchandise. The
company is headquartered in Welwyn Garden City, England. It was founded by Jack Chen in the
year 1919 and offers a wide variety of products at affordable rates. The report includes a
description about the company, its products/services and history. The grocery market has been
analysed for Tesco. It also analyses the market and industry the company has been operating in
as well as its market structure.
MAIN BODY
Description of the company, its products/services and history
Tesco is a multinational grocery and general merchandise retailer, that is headquartered
in England. Since the company was established, it has only grown and expanded in different
geographic locations across the world. The company is committed towards providing the quality
products to its customers at affordable rates. The company is the third largest retailer in the
world when measured by gross revenues. The company offers its products both through offline
stores as well as its online website. Tesco has been able to develop a market strategy that has
helped it in gaining a competitive advantage and stand out in the market (Bell, Bryman and
Harley, 2018). The company has got a strong brand image and a large base of customers that are
loyal to it. But, it keeps seeking different ways of improving the overall experience of its
customers. This is because the company understands the value of customers and that they can
influence the company significantly. The company operates a number of brands under its name,
like Tesco Bank, Tesco Mobile, Booker Group and so on.
The company offers a diverse range of products that include furniture, toys, books,
software, clothing etc. Tesco manufactures its own products and sells them based on different
geographic locations. The company aims to increase its overall profits by offering products at
lowest price possible. The vast product category ensures the satisfaction of different needs and
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preferences of the customers across different locations. One of the many product ranges of Tesco
are groceries. It offers products like ice creams, fresh fruits and vegetables, milk, eggs, bread,
cereals, chocolates, biscuits etc. The company operates in a high competitive environment and
thus, keeps innovating its strategy in order to market its products. The groceries are offered at
lowest price possible in order to attract as many customers as possible. Apart from this, different
offers and discounts are offered on the products from time to time. The company also delivers
products if an order is placed online.
Tesco was founded by Jack Cohen in the year 1919 with the vision of making affordable
food available to everybody (Our history, 2020). The company got its name in the year 1924
when Jack sold first product of the brand. The product was named as “Tesco Tea” and the
company opened its first store in North London (Choi and Suh, 2017). The store sold dry goods
of great value as well as the company's first branded product. Tesco built its first headquarters
and a warehouse in the 1930s. The warehouse was considered to be the first modern warehouse
in England. This was when Tesco not only expanded in London, but in the neighbouring
countries as well. In 1946, the company introduced the concept of self-service along with a rapid
growth in the 1950s. The company started operating online in 2000 and has seen a rapid growth
of its business over the years. Today, the company operates a number of brands under its name
and offers a wide range of products across different geographic locations across the world. This
has led to an increase in the overall profitability as well as the customer base of the company.
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