Analysis of Tesco and Aldi: A Contemporary Entrepreneurship Issue

This presentation provides an in-depth analysis of contemporary issues in entrepreneurship, focusing on a comparison between Tesco and Aldi within the UK retail sector. The presentation begins with an introduction to the topic, highlighting the relevance of the chosen subject and the factors driving its significance. A comprehensive literature review establishes the theoretical frameworks relevant to the study, examining definitions and debates surrounding entrepreneurship. The research methodology employed, which includes secondary research and case study analysis, is clearly outlined. The presentation then delves into a detailed comparison of Tesco and Aldi, examining their market backgrounds, business models, and competitive strategies. Similarities and differences between the two companies are highlighted, leading to specific recommendations for improvement. The presentation concludes with a summary of findings and a list of references, providing a comprehensive overview of the research conducted. The analysis covers market size, recent changes, and competitive dynamics within the UK retail sector, offering valuable insights into the challenges and opportunities facing these major players.

Contemporary Issue in
Entrepreneurship

INTRODUCTION
 A Contemporary issues are type of event, opinion, idea and particular topic which
related to the present areas.
 It is basically refers to show the anything about the new things people that engaged
with the business activities. These issues types on different areas such as social issue,
political issue, environmental issues etc.
 In this report, it will discuss about TESCO and Aldi firm that determine in their
specific market size and what recent changes occur in the business process

Literature review
 According to Hägg and Kurczewska, 2016. An entrepreneur always used the new
opportunities in the market place to promote their product and services.
 Internet facilities are beneficial for organization to interact with the consumers to
identify their need and requirement. Skill is needed for enterprise process to develop
their specific plans for growth and development.
 According to Link and et.al., 2017. the entrepreneur are great personality in the
organization to participate the important role towards the growth and development. All
the team members are work together to improve the performance and efficiency of
business development process.

Cont..
 According to Ribeiro-Soriano and Mas-Verdú, 2015. Sometimes, the entrepreneurship
team or group does not incorporate the sleeping members and passive.
 There are different theories that applicable in the business entrepreneur which faced
many problems related the inadequacy of skill and finances etc.
 In the competitive marketplace, It is necessary for entire team to collaborate with the
other members to conceptual frameworks on the basis of research in the particular field
and areas.
 It can be create conceptual frameworks with the help of entrepreneurship according to
the inputs on the team or groups

Cont..
 According to Ritala, Kraus and Bouncken, 2016.they also introduced the intellectual
entrepreneur, this is the person those have some quality and skill to design, launch and
running the business process all over the world.
 Every entrepreneur has some intellectual quality to expand the business all over the
world.
 In this way, entrepreneur is willingly to organize and develop the entrepreneur venture
along with the risk that converted into the profit. They also mainly focus on towards the
running and launching the business

RESEARCH METHOD
In order to collect data, there were different research method which was applied. The data
was collected by secondary method. It helped in collecting useful data and information. the
method applied are described below :-
Secondary research – the secondary data was collected from previous articles, journals,
etc. also, some case study was analyzed and evaluated to collect data about UK retail
sector. there were some terms used in selecting proper case study materials. For example,
only 2015- 2017 cases were selected. Also, only UK data was gathered.

CASE COMPANIES
 For present report Tesco and Aldi are chosen. this is because they both belongs to retail
sector and majorly operate in UK. they give tough competition to each other to gain
competitive advantage in retail sector.
 Moreover, products and services provided by them are similar. But in recent time there
has been high decline in sales that is 3.1 %.
 Furthermore, due to change in market trend both Tesco and Aldi have lost market share.
This is due to rise in prices of products and services. Therefore, in order to identify
competitive analysis both companies are selected.

Market background –
 The retail sector of UK generates overall revenue of €366 billion. The total number of
employees are 2.9 million. also, contribution of retail industry in UK GDP is 4.3%.
 There are many organizations which operate in UK such as Morrisons, Sainsbury,
ASDA, etc. so, there is stiff competition among them.
 Due to strict exit and entry barriers it has it is very difficult for nee firms to enter in it.
Tesco and Aldi is having strong market share and large customer base.

Cont..
 But as compared to Aldi, Tesco is having highest market share in retail sector. it highly
depends on UK to generation of profits. the total revenue earned is €55.9 billion. Its
subsidiaries are Tesco bank, mobile, etc. Aldi revenue was close to Tesco that is €55
billion. Its subsidiary is Trader joe’s

Comparison between Tesco and Aldi
Tesco Aldi
It is a public limited company
operating in 11 countries but
generates 28.4 % revenue from
UK and its neighboring countries.
A private limited firm operating in 20
countries. by operating globally
company generate revenue.
Tesco is diversified into different
areas such as clothing, furniture,
financial services, etc.
Aldi business is diversified into Aldi
Nord ad Sud’s .
Tesco majorly focuses on middle
and high class customer and
follows competitive pricing
strategies
Aldi target customer are high class
people and premium pricing strategy
is followed.
Due to its low cost products
Tesco has built a strong and loyal
customer base in UK.
Aldi customer base is not big as
compared to Tesco.
The benefit Tesco enjoys in
diversified sector which enables
them to earn high profits.
Here, Aldi is operating in 20
countries. so, they earn profits from
there.

Similarities
 Tesco and Aldi belong to retail sector and the expansion of stores all around the world
has helped them to create brand awareness and emerge as global brand.
 They are able to generate high sales and profits due to its expansion. Both companies
focus on product development so that more customer can be attracted.

Cont..
 They provide after sales services to customer to retain them. Furthermore, both
companies are engaged in effective marketing strategies to differentiate their products.
 In addition, Tesco provide loyalty schemes and benefits to loyal customers. Aldi have
also started such programs that has benefited in retaining customers.

RECOMMENDATIONS
 By comparing two big players of retail sector in UK, it can be evaluated that the both
provide variety of goods and services to people.
 Each of them is having customer base through which they earn profits. it can be
analyzed that Tesco operate at large level globally as compared to Aldi. Due to this
Tesco is having large customer base and are able to attract more people.

Cont..
 Besides this, Tesco is having more diversified business giving them a strong
competitive advantage to them.
 Apart from this, it is necessary to do market segmentation so that target market is
selected. This assist in defining pricing strategy and identifying needs.
 Aldi has initiated strategy to trade at global level. this has helped them to grow and
built large customer base.

CONCLUSION
 From presentation it can be concluded that there has been a high downfall in retail
sector of UK. this is due to change in trend and rise in prices of products.
 There has been high decline in sales in UK. Tesco and Aldi belong to retail sector and
offer variety of goods to people.
 There are several other companies as well which has led to rise in competition in retail
sector. it can be summarized that Tesco is such a big brand in UK whereas Aldi is not.
 Both of them generates almost equal revenue even having such differenced among
them.

REFERENCES
Books and journals
 Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts and
practice. Routledge.
 Smallbone, D., Welter, F. and Ateljevic, J., 2014. Entrepreneurship in emerging market economies:
Contemporary issues and perspectives. International Small Business Journal, 32(2), pp.113-116.
 Matlay, H., 2018. Entrepreneurship Education: New Perspective on Entrepreneurship
Education. Education+ Training, 60(7/8), pp.923-926.
 Berglund, K., Gaddefors, J. and Lindgren, M., 2016. Provoking identities: entrepreneurship and emerging
identity positions in rural development. Entrepreneurship & Regional Development, 28(1-2).pp.76-96.
 Frank, H. and Landström, H., 2016. What makes entrepreneurship research interesting? Reflections on
strategies to overcome the rigour–relevance gap. Entrepreneurship & Regional Development, 28(1-2).
pp.51-75.
 Hägg, G. and Kurczewska, A., 2016. Connecting the dots: A discussion on key concepts in contemporary
entrepreneurship education. Education+ training, 58(7/8), pp.700-714.
 Link, G.J and et.al., 2017. Contemporary issues of open data in information systems research:
Considerations and recommendations. Communications of the Association for Information
Systems, 41(1).p.557

REFERENCES
 Ribeiro-Soriano, D. and Mas-Verdú, F., 2015. Special Issue on: Small business and entrepreneurship:
their role in economic and social development.
 Ritala, P., Kraus, S. and Bouncken, R.B., 2016. Introduction to coopetition and innovation:
contemporary topics and future research opportunities. International Journal of Technology
Management, 71(1-2). pp.1-9.
 Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts and
practice. Routledge.
 Smallbone, D., Welter, F. and Ateljevic, J., 2014. Entrepreneurship in emerging market economies:
Contemporary issues and perspectives. International Small Business Journal, 32(2).pp.113-116.
Online
 UK retail stats and facts. 2018. [online] Available Through : <
https://www.retaileconomics.co.uk/library-retail-stats-and-facts>

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