Joint ventures there is an opportunity for joint

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Joint venturesThere is an opportunity for joint ventures in the regions where Tesco stores are underperforming. Thelocal companies can provide profound market knowledge which can help in improving performance in such regions.Online shoppingTesco can avail the opportunity by growing and upgrading its online shopping business as well ashome delivery services.Emerging marketsAlthough Tesco has stores in many developing countries but expanding its business to emergingcountries like South Korea, Turkey, and Indonesia can be a profitable opportunity for the company.
54Tesco’s ThreatsChristmas ad controversyTesco faced social media backlash when it launched its Christmas ad in 2017. Peopleboycotted the store claiming a disrespectful act from Tesco against Christian faith.‘Fake Farm’ legal threat –Tesco was accused of misleading customers with fake farm brand names and marketing itsfood products under fake name ofWoodside Farms.” It faced severe legal threat proceedings over the issue in 2017.Brexit ReferendumWith Britain no longer in the European Union, the trade deals and cost matters have posed a threatfor Tesco.Competition with supermarket giantsWith rising growth and performance of WalMart (with ASDA acquisition),Carrefour, and Aldi, Tesco’s biggest competitors, Tesco’smarket position can be threatened.Economic crisis and credit crunchesGovernment regulations, legal and tax matters, credit crunches, and economicupheavals can affect the operational efficiency and performance of Tesco stores in critical regions.
55XV.Recommendations1.Quality control:Among the actions designed for the re-positioning for Tesco, quality control obviously ranked at the most crucial element.Quality always plays an important role in gaining prestige and accreditation of a company, which then helps to maintaincustomer satisfaction and loyalty (Linton). On the other hand quality, control prevents the probability of faulty productsreaching the customer, which means reduce the risk of reputation damage and indemnity cost.As for Tesco, quality control has to be the top priority if they want to win back the glory in the past. Due to the qualityscandals listed above, the trust of Tesco’s goods has been tremendously dropped. Tesco needs to take urgent and specificactions to improve the scenario:Reducing low-end product line and developing high-end product range: Tesco provides a vast amount of products, up to90,000 stocks in 2015. Tesco’s new boss, Dave Lewis has had the policy to cut down on the number of product lines so asto simplify shopping for customers as well as reduce cost and lower price (Guardian, 2015).Nevertheless, only by reducing the low price and quality categories does Tesco upgrade its image in quality? It obviouslycustomers who are inadequately financial wants the cheaper products will find the other supermarket with better price whileconsumers prefer quality will not choose the low-quality product. Having lost the pricing competitive advantage, keeping
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Term
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Tesco Express, Tesco case study

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