Recommendations of Tescos Supply Chain Management Practices Case Analysis

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Recommendations of Tescos Supply Chain Management Practices Case Study Analysis

On the basis of above internal and external analysis of the company along with the examination of various options, the company is advised to consider alternative 3. As alternative 3 would enable the company to broaden in global markets without any reduction in its regional earnings and any degeneration of its market position. The company might pursue alternative 1 which would make it possible for the company to focus on potential international markets rather than the regional markets however as the business is highly dependent on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the significant decline in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Tescos Supply Chain Management Practices Case Help Stores

Growth towards global markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although a good alternative for increasing the global presence of the company. Nevertheless, the closing of domestic shops could highly impact the revenues of the company as above 90% of its shops lie locally and closing those shops would eventually decrease the incomes of the company. The company has a long term market position in United States which can not be produced quickly in the new markets. The choice would help the business to expand in international markets together with the elimination of problems raised in its local markets associated with its variety. The advantages and disadvantages for Alternative 1 are noted below;

Pros:

• Expedition of new worldwide markets.
• Boost in income from global markets.
• Elimination of problems related to variety.
• Income diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of extensive earnings from the local markets.
• Increase in competitors.
• Differences in cultures could resulted in a failure of the brand name particularly in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Tescos Supply Chain Management Practices Case Help Stores

Alternative 2 includes the intro of online market places through producing a correct company's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could present a severe threat to the market share of business. The rivals are moving towards click and Recommendations of Tescos Supply Chain Management Practices Case Analysis stores with Gap presenting Piperline. This shift towards online markets might minimize the earnings for company. In this scenario the business could think about presenting Click and Recommendations of Tescos Supply Chain Management Practices Case Solution stores. These stores with a low requirement of funds to settle would enable the business to reach international markets, without ending its domestic stores. The advantages and disadvantages of option 2 are provided as follows;

Pros:

• Low financial investment
• Reducing competition hazard
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Incomes
• Low Operating Costs
• Easy new market entrance

Cons:

• Hazard to the market position
• Removal of brand Individuality
• Removal of the terrific store experience.
• Risk of decline in elite sales.

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

Another alternative that the business might think about, is to broaden towards the global markets without closing its domestic shops that contributes to the major part of earnings of the company. The benefits and drawbacks associated with Alternative 3 are provided below;

Pros:

• Decreasing competitors risk
• Access to the world markets
• Enlarging consumer base
• Large Earnings
• Exploration of brand-new global markets.
• Increase in income from worldwide markets.
• Profits diversity.
• Action towards being a strong international brand.

Cons:

• Continuation of concerns associated with diversity.
• Differences in cultures could resulted in a failure of the brand specifically in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenditures to get market share.



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