Yuvarani Manivannan B17101088

TUTORIAL 9 (CASE STUDY)

1. Analyze the cost leadership strategy of Tesco based on Porter’s Competitive Forces Model.
Why would it be a smart move to close one of its online shopping sites?

The principle objective behind closing down one of the sites was to ensure that the organization
can focus more on the business measures that really acquire them more incomes when contrasted
with the one that is getting closed. This really helped the organization to enhance the quality of
the business measures that they were running as a grocery retailer to produce better products and
enterprises to their customers inside the nation just as over the world.

2. Do you think Aldi and Lidl’s strategy of venturing into e-commerce is a good idea?

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Yes, it is a smart thought on the grounds that the world is changing extremely quick, because of

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the progressions in the field of data frameworks just as web innovation. An ever increasing

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number of individuals are getting associated over the web and subsequently these organizations

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have more customers they can offer to, the notices and the showcasing don't cost them a lot over
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the online media stages and the scope is extremely high. This is the motivation behind why it is
an excellent thought for them to enter the internet business industry.
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3. Comment on Tesco’s strategy of opening a discount chain. Do you think it could recover
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Tesco’s former market position? Explain your answer.

Yes, it is an aggressive move and it would for sure heal the organization by attracting more and
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more customers. When they would start providing the discounts to their customers then the
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customers within the country would have a number of choices in terms of Lidl and Aldi and
Tesco and since Tesco has the greatest reach within the grocery supermarket then the customers
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would obviously come to buy from them as they have a brand value within the country. This
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would increase the sales which in turn would increase the revenues of the organization as well.
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4. How much potential do you see for virtual stores (like the ones Tesco introduced in South
Korea) in the United Kingdom?

With the ever-growing reach of the internet and the revolutionary advancements in the field of
information systems technology more and more people are getting connected with each other

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 Yuvarani Manivannan B17101088

over the internet. With the invention of technologies such as smartphones, etc. nobody wants to
go out to shop they are more willing to shop from their homes as it is more comfortable, they get
good discounts, doorstep delivery is there. Due to all these reasons the popularity of virtual
stores in the e-commerce industry is increasing at a very fast pace, this is the reason why stores
like Tesco would only grow in popularity as well as in size or revenue.

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