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Tesco - Competitor Advantage

Toby Sewell, Sophie Sanders, Katie Underwood, Alistair Woolham and Tim Winstanley

Toby Sewell

on 13 March 2013

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Transcript of Tesco - Competitor Advantage

Competitive Advantage Market Overview Competitor Analysis YES Profile Distribution and Coverage Advantage Four Cs: The Consumer-oriented Model
(Robert F. Lauterborn 1993) What is Competitive Advantage? "The achievement of superior performance against rivals, through differentiation to create distinctive product appeal or brand identity" (Dibb et al. 2006) Types of Competitive Advantage Position in the Market
Ownership of Assets/Resources
Distribution Channels
Supply Channels
Proficiency (Knowledge, Competence, etc)
Innovation - eg Tesco club card
(Ma, 1999) Founded in 1919 by Jack Cohen
One of the worlds largest retailers
500,000 employees.
Operate in 14 different markets globally
Market leader in the UK
Sales revenue £61.6 billion (2011)
Store formats: Tesco, Tesco Express, Tesco Extra, Tesco Metro and One Stop.
Tesco club card - 16 million active members Innovation Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the organization and the consumer.

•'Every little helps’

• Internal Communications such as, Listen and Fix Consumer Cost Convenience Communication Consumer Overview Our vision is for Tesco to be most highly valued by the customers we serve, the communities in which we operate, our loyal and committed staff and our shareholders; to be a growth company; a modern and innovative company and winning locally, applying our skills globally' - Tesco Does Tesco have a competitive
advantage in the UK grocery Market? "Technological innovation is, without doubt, the major force for change in modern society" (Betz, 2011) Going forward... Movie Streaming April 2011 August 2012 eBooks September
2012 June 2012 Music Streaming June 2012 No service First to market... Tesco Dark Stores Advertising Rebuild brand Love Offering the right product to satisfy particular customer needs

Large product range.
Supplying products to suit local needs of the customers such as Frozen Parmo's for sale in Middlesbrough Online sales increased by 15% during the final 3 months of 2010 (Marketing Week, 2013)
Accessible locations
Technological advances
24 hour opening hours Regional costs - higher prices in London than Dundee
Cost of drivers to the store
Moral cost of driving out local independent store
Cost of conscience from selling less than ethical products such as Nestle Tesco’s Indirect Competitors

Independent groceries, butchers, bakers, fish mongers
Restaurants, café’s
Convenience corner shops
Meals on wheels
Milk men Where Consumers Shop - Main Weekly shop Mintel 2008-12 Attitudes - Aug 2012 Mintel 2012 The Guardian 2011
Full transcript