Recommendations of Tesco Under Terry Leahy Case Solution

Home >> Ibs Center For Management Research >> Tesco Under Terry Leahy >> Recommendations

Recommendations of Tesco Under Terry Leahy Case Study Help

On the basis of above internal and external analysis of the business together with the assessment of various options, the business is advised to consider alternative 3. As alternative 3 would allow the business to broaden in international markets with no reduction in its local profits and any deterioration of its market position. By thinking about Alternative 3, the company could maintain its shop experience and brand name uniqueness. It could likewise think about alternative 2 that might allow the company to access the markets without any potential investment. The company could pursue alternative 1 which would allow the business to focus on possible worldwide markets rather than the regional markets however as the company is extremely reliant on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the significant decline in company's profits. The business is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Tesco Under Terry Leahy Case Solution Stores

Growth towards international markets through opening new stores in other Europe and Asian nations with closing domestic shops is although an excellent option for increasing the international presence of the business. The closing of domestic shops might highly affect the earnings of the firm as above 90% of its stores are located domestically and closing those shops would eventually minimize the incomes of the firm. The company has a long term market position in United States which can not be created soon in the brand-new markets. The alternative would assist the business to expand in global markets together with the elimination of concerns raised in its regional markets related to its variety. The advantages and disadvantages for Option 1 are noted below;

Pros:

• Expedition of brand-new global markets.
• Increase in profits from international markets.
• Removal of issues related to diversity.
• Revenue diversity.
• Action towards being a strong global brand name.

Cons:

• Loss of extensive earnings from the local markets.
• Increase in competitors.
• Distinctions in cultures might led to a failure of the brand name particularly in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Tesco Under Terry Leahy Case Help Stores

Alternative 2 includes the intro of online market locations through generating a proper business's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could position a serious hazard to the market share of business. The rivals are shifting towards click and Recommendations of Tesco Under Terry Leahy Case Analysis shops with Space presenting Piperline. This shift towards online markets might reduce the earnings for company. In this circumstance the business could consider presenting Click and Recommendations of Tesco Under Terry Leahy Case Analysis shops. These stores with a low requirement of funds to settle would enable the business to reach worldwide markets, without ending its domestic stores. The pros and cons of alternative 2 are offered as follows;

Pros:

• Low investment
• Decreasing competitors risk
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Incomes
• Low Operating Expense
• Easy new market entryway

Cons:

• Hazard to the market position
• Removal of brand Uniqueness
• Elimination of the terrific store experience.
• Danger of decrease in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another choice that the business could think about, is to expand towards the global markets without closing its domestic stores that contributes to the major part of profits of the company. The benefits and drawbacks related to Alternative 3 are offered below;

Pros:

• Reducing competitors hazard
• Access to the world markets
• Increasing the size of consumer base
• Big Profits
• Expedition of brand-new global markets.
• Increase in income from international markets.
• Income diversification.
• Action towards being a strong global brand.

Cons:

• Extension of problems related to variety.
• Differences in cultures might resulted in a failure of the brand name specifically in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.