Free Essay on Value Chain Analysis of Tesco
Tesco is one of the leading retailers in the United Kingdom. It is a company that manages over a thousand supermarkets, hypermarkets and stores not only in the UK, but also Ireland, Asia and central Europe. Tesco was established in 1919 and it rose to become the world’s largest retailer after Carrefour and Wal-Mart. One strategy that Tesco has relied on is through the value chain analysis. Value chain is a productive way of thinking on the ways in which value can be easily delivered to clients and re-considered all things that can help maximize value.
Tesco value analysis can be defined as the connection between key value adding that activities and their interface with incredible support activities. Many retailing companies have not been able to succeed in their endeavors due to lack of a better strategy to keep customers close. Tesco value chain strategy has helped for tailoring the strengths and weaknesses in the value adding processes. The company has been praised by many supply chain management criticizers for its great use of information technology systems to enable easier progress of the company. Tesco has been the best retailer out there because of its reliance on the value chain strategy on all its operations. The value chain analysis of Tesco has been demonstrated in a great way that many of its competitors cannot match and it entails;
- Inbound logistics– Tesco uses its high rank in the market and economies of scope as the key to achieve low costs from its core suppliers. Analysts have made it clear that their ordering system has made it easy for the company to induce efficiency into Tesco inbound logistics operations.
- Operations– Tesco has embraced IT to help support of procurement and manage customer expectations. This has also helped the company facilitate its low cost and meet customers’ needs.
- Strategic management– Tesco has invested millions of money to streamline its operations through its Tesco Digital program.
- Outbound logistics– Tesco holds great leadership position whether online or offline in all of its food retail segments thanks to its effective outbound logistics.
- Marketing and sales– Tesco Club card has been introduced through information technology to dissuade customers from relying on other companies out there. The company has also introduced its Greener Living Scheme to give clients an opportunity to take care of environmental issues that include how to reduce food waste and carbon foot print whenever preparing daily meals.
- Great services– Tesco has come up with great customer care services that have helped meet the needs of many clients. Fundamentally, the company has been able to create a high degree of value in comparison with its mainstay competitors in the retail market.
By the value chain analysis of Tesco, a lot of strategies and theories have aided the company earn good trust from its large clientele base. The retailing industry is experiencing a lot of innovative services and products which has offered it a competitive advantage over other retailing companies. Above all, Tesco has penetrated to the international market a move that has helped it march other companies.
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