Competitive Strategy in Retail Industry

Competitive Strategy
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Table of Contents
Introduction................................................................................................................................3
Examine the key challenges faced by companies and contextualize the major approaches
companies apply as they formulate a strategy........................................................................4
Analyse complex strategy environments and develop confidence in working with others to
develop and apply strategic alternatives................................................................................6
Critically analyze the relationship between an organization's strategy and its structure.......8
Synthesise theoretical and practical knowledge of strategy in the diagnosis of strategic
issues and the formulation of strategies.................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11
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Introduction
The business strategy helps organization in accomplishing its desired goals and objectives in
an appropriate manner. There are various growth strategies through competitive advantage
can be achieved but Ansoff's growth matrix is a most effective model which would be
discussed in this business report. This report would be focused on the Tesco Plc. which is
international supermarket chain and currently wants to develop a competitive strategy. The
current report will include the challenges which are faced by the organization while
formulating a competitive strategy. Also, it will discuss the relationship between business
strategy and structure. At last, theoretical and practical knowledge of competitive strategy
will be given to the organization can overcome its strategy issues and formulate competitive
strategies in most effective manner.
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1. Examine the key challenges faced by companies and contextualize the major
approaches companies apply as they formulate a strategy.
The strategy is that business concept which is used to accomplish organizational goals in an
effective manner. In a business enterprise, competitive strategy plays a most significant role
as it helps the organization in accomplishing competitiveness over competitors (Armstrong,
2013). There are various challenges which are facing Tesco which are followed as under:
Market competition: In the present time, there are many companies which are entering into
retailer industry; this is creating huge competition in the market. For competing with the
market, competitor, Tesco needs to develop a competitive strategy so that it can compete with
its market competitors (Bentley, et. al., 2013). ALDI, LIDL, Coles are some major players in
the retail industry which creates a huge problem for Tesco and its future growth. There are
various negative consequences of market competition on Tesco such as low market price,
decreased customer base and poor business performance. With the help of competitive
strategies, a business enterprise can easily beat its competitors and also can grow their
business in most effective as well as in a systematic manner. Differentiation is a major
competitive strategy which can be used in this situation. By making business products
different from a competitor, Tesco can easily achieve a competitive advantage in the
marketplace.
Changing customer needs: The changing business environment also influences the needs
and wants of customers. All the successful companies have determined that customer is key
people on which their success depends. So, it is highly essential for Tesco to produce its
products as well as services as per customer needs (Bereznoi, 2015). For becoming customer
oriented, the business enterprise has to develop effective strategies so that they can satisfy
customer needs and demands in most effective as well as in a systematic manner. Also, to
cooperate with customer needs, the organization has to make customer-oriented products
which can attract a huge number of people and add extra value to a business image. For
cooperating with this challenge business enterprise can take help of product development
strategy which allows the business enterprise to attract a huge number of customers.
Globalisation: This international trend is providing huge advantages as well as
disadvantages of retail companies like Tesco, Aldi and many more (Bharadwaj, et. al., 2013).
The positive impact of globalization is that it provides an opportunity to an organization to
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