Introduction

Tesco PLC represents most renowned retailer for merchandises in Britain, and the organisation is a grocery store with multinational presence. The headquarter of the company is located at Hertfordshire in United Kingdom. Tesco was established by Jack Cohen during the year 1919, and the initial enterprise comprises of many market stalls collected together (Jenkins & Williamson, 2015). The naming of the organisation as Tesco can be traced to Cohen’s initial venture of bringing in tea shipments from T.E.Stockwell. Tesco established the initial store at Burnt Oak in Barnet during the year 1929. Even in case Tesco was at its core a grocery retailer, the company has made significant diversification across areas akin to retailing of clothing, books, electronics, furniture, toys, petrol, telecoms, software, financial services and internet services (Jenkins & Williamson, 2015). An organisation akin to Tesco shall be focussed over the business as well as in this manner they avail the privilege for enjoying overall success spanning a longer-term horizon. In this context, corporate strategies of Tesco UK include the following: [1] delivering quality products for the needs of customers in rates that are highly competitive, [2] focussing on the delivery of customer service that is of world class, [3] providing the company’s loyal customers by way of club cards, [4] providing products that are with superior quality and in providing numerous choices, and [5] providing customers with flexible form of store formats such that the same enriches its customers with shopping experience (Jenkins & Williamson, 2015).

Critical Success Factors

Tesco UK has the ability for providing in targeted market by way of products that are sold at competitive price as compared to the rivals. In this context, critical successful factors which are integrated in Tesco UK shall include the following: [1] analysis of the competition, that is, this company owns numerous retail stores and the same in turn has an impact on food market at an overall level. At the time of financial crisis, Tesco UK faced significant shortage in customers as they had moved to the domain of cheaper products offered at the companies akin to supermarkets like Lidle, Aldi and Asda (Audu et al., 2014). With Tesco being amongst largest of the retailers across United Kingdom, the company experiences profit that is over GBP ~2 billion. Further, Tesco UK was fourth of the largest retailer globally during 2008. Further, local suppliers shall in addition be happy for working with company akin to Tesco and are at all times cooperated with Tesco UK. In effect, Tesco UK had shared the industry-level experiences amongst local clients (Audu et al., 2014), [3] Sales strategy, that is, Tesco UK has the ability for marketing of the products by usage of various media. Further, journals as well as news has aided the company for advertising newer launches, and [4] competitiveness, that is, customers shall be seen in providing feedbacks suggesting that experiences they had whilst shopping across Tesco outlets shall be highly pleasant as compared to competition. The price-levels which the companies offer has been much lesser in comparison with other supermarkets (Audu et al., 2014).

Conclusion: Strategic Fit Analysis

On the basis of analysis and review undertaken, the analysis of strategic fit is presented as follows –

Strengths
Increases in market share represents a key strength to Tesco UK as the company holds significant amount of market share and the company has been continuing in growth of share across both food retailing and also non-food retailing (Evans & Mason, 2018). There have been none of the sign for abatement in ROI as well as general levels of growth at organisational level. The investments undertaken by Tesco can be noted to be aggressive yet strategic decisions that had made concerned company for moving towards further leadership in the market. The overall revenues which shall be collected from non-food division has been 23 per cent in total earrings (Evans & Mason, 2018). In terms of insurance, insurance services offered by Tesco UK had recorded highest numbers in motor vehicle related services. The customers who are holders of club card can avail the travel insurance by the company during check out. Lastly, Tesco Online has become one of the largest online store, and sales from the same in general continuously grows (Evans & Mason, 2018).

Opportunities
In terms of business opportunities, retailing in non-food items represents a critical cope. With growth across the hypermarket segment of the company has been expected in that there shall be growth as retail sales over future years (Keiningham et al., 2020). Overall growth at the level of company shall be suitably increased by way of combination in footfalls, framework of lower costs as well as merchandising skillsets. Tesco UK experiences virtuous circle in growth by way of increased levels of earnings that can be gained from overseas markets. Further, sales by way of non-food sector shall be expected in growing further over the years. The company shall aim in being wrong with respect to non-food sector by way of notable position across food sector (Keiningham et al., 2020).

In the beauty & health sector, Tesco UK can be noted to be experiencing fastest sales in skincare products which represents a crucial business opportunity. The overall range in beauty as well as health products can be noted in growing on a continuous manner. The overall supplies in health care as well as trends across the market shall be in larger volumes (Keiningham et al., 2020).

In addition, growth in the global markets represents a crucial business opportunity. Telco UK operates across Asia, spanning six nation, and across Europe which includes UK. By way of its operations and experiences in foreign market, Tesco UK can be noted for being forced with the global growth for becoming highly focused over hypermarkets sector as the same has highly positive form of implications with respect to growth across United Kingdom (Keiningham et al., 2020).

Challenges & Way Forward
In the light of strengths and the opportunities experienced by Tesco UK, the company has a favourable strategic growth prospects. Yet the company needs to consider issues and challenges as follows: [1] disproportionate dependence over United Kingdom market, that is, even Tesco UK has presence across the globe, the company continue to rely on United Kingdom economy. The same may not be an issues in shorter-term horizon but can be critical over the longer-term. Hence, increasing and strengthening global presence shall be of critical significance to the company (Harrison et al., 2019), [2] the significant investments of capital expenditure made by Tesco has resulted in significant increases in its debt. The same can have significant strain on the financial position. Hence, the company needs to make effective form of financial management and planning to ensure stable business operations (Harrison et al., 2019), and [3] serial acquisitions by the company can have significant positive outcomes on product diversity and choice given to the customer. Yet, the same can have significant strains on the earning abilities and the debt increases, the company needs to be prudent in its planning and management by considering its future well-being (Harrison et al., 2019).

References

Audu, A., Danjuma, H., & Habukuk, A. (2014). The Conquering Strategies of Oligopoly firms. A review on entry strategies of Tesco Company Plc in the UK and beyond. IOSR Journal of Business and Management, 16(8), 06-15.

Evans, B., & Mason, R. (2018). The lean supply chain: managing the challenge at Tesco. Kogan Page Publishers.

Harrison, A., Skipworth, H., van Hoek, R. I., & Aitken, J. (2019). Logistics management and strategy: competing through the supply chain. Pearson UK.

Jenkins, W., & Williamson, D. (2015). Strategic management and business analysis. Routledge.

Keiningham, T., Aksoy, L., Bruce, H. L., Cadet, F., Clennell, N., Hodgkinson, I. R., & Kearney, T. (2020). Customer experience driven business model innovation. Journal of Business Research, 116, 431-440.