Tesco PLC: Business Strategy, Growth Strategies, and Expansion

This report analyzes Tesco PLC's business strategy, focusing on growth strategies to achieve its objectives. The analysis considers Tesco's current market position, including its strengths, weaknesses, and the competitive landscape. The report explores various growth strategies, such as market entry, expansion, and retrenchment, and their potential impact on the company's performance. The report also justifies the selection of a specific strategy, emphasizing how it can help Tesco minimize risks and achieve its financial goals, such as increasing sales. The report emphasizes the importance of understanding the customer base and market segmentation for effective product and service offerings. The selected strategy aims to leverage existing products and services in new markets to foster expansion. The report references key academic sources to support its analysis.

Business Strategy

TASK 6

(a) 3.1 Strategies for Tesco PLC
As per the findings from Task 3 and 4, it has determined that Tesco PLC has highly
dependent on domestic market and high threat of entrance of new companies in
retail sector. By looking these issues and considering one of SMART objective of
company that is increase sales by 15% by the end of 2020, some alternative
strategies are as follows.
Market entry strategy: Tesco PLC is currently serving its existing products and
services to a huge target market. To attain SMART objectives and minimize the
weaknesses, company can enter into a new market such as food, restaurants,
resorts etc. For this, organization can adopt different new market entry tactics
such as mergers, joint ventures, strategic alliance etc.
Expansion: It an attractive strategy in comparison to market entry strategy. But,
before use this method, company has needed to determine the sales, present
customer bases and market share (Price and Chahal, 2006). For Tesco, to attain
long and short term objectives, it is a good growth strategy. By selling current
products into the new market, enterprise can expand its business.

Conti....
Limited growth: It is most effective strategy of growth for Tesco as
compare to above mentioned strategies. It has lowered down the
risk of failure of new investment and improve the financial condition
of company in present time. In limited growth strategy, organization
has two available options either decrease the prices of products or
launching of existing goods at new target locations.
Retrenchment: The following strategy helps Tesco to minimize
negative impacts of diversification and isolation of core
competencies. It has made extra expenditure of company under
control which will assist in building good financial position for future.
For taking retrenchment growth, firm can either adopt liquidation or
divestment strategy (Carlson, Harris and McLeskey, 2013).

(b) 3.2 Justification of selection of one strategy
By analysing the above stated alternatives of different growth
strategy, it has been found that the most appropriate growth tactic
for Tesco PLC to minimize the impact of weaknesses and
accomplished business objectives in appropriate manner in
expansion. The reason of suggesting the following strategy is it will
make company more focused towards its targets. By doing this, it
becomes easy for the organization to divide the huge customer
base into a different segment which can be easily accessible. With
the help of this, Tesco will able to sell its current products and
services into new market (Kapferer, 2012). It will minimize the risk
of diversification and dissolution of core competencies. It will help
Tesco to develop different pricing policies that attract various kinds
of customers and create a new market segment. By exporting the
services and products into new nations, expansion growth will
achieve by organization in near future.