Tesco’s Decisions in Multi-Channel Retailing Business
Tesco takes four different strategic decisions regarding their growth and expansion. These four strategies are:
- Make a substantial growth in their core area of business, that means the UK.
- Make the growth of the business through the international operation.
- Diversification through giving extensive importance to non-food items as their main business is food business.
- Create a new type of service and make the customer habitual to it.
Tesco is adopting above mentioned strategies to ensure its success. To implement the first strategy, it expands the floor space of its current outlets. Besides, it plans to increase the number of outlets in the UK. It enables Tesco to deal with a great number of customers. Because of the second strategy, Tesco expands its store line in Asia. In those stores, it employs a substantial number of employees. It also enters into the US market. It shows the sign of internationalization of the company. In the light of the third strategy, Tesco decided upon promoting the non-food items beside the food items.
The large numbers of customers are now at the reach of Tesco. It gains a large sum of profit from there as well as gaining the market share continuously. Fourthly, Tesco adds new services to the existing service line to satisfy customers. To do this, it introduces services like Tesco Personal Financing (offers banking and insurance services), tesco.net and Tesco Telecom. Through this, services Tesco attract more customers for their products.