Tesco: Keeping The Hard Discounters At Bay? Case Solution & Answer

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IMD-5-0737 Â© 2008
Martin; Koschat; Adrian; Ryans; Stephanie;Â Sequeira

This case can be used with NestlÃ©: The Growing Retail Part Of Hard Discounters Like Aldi (IMD-5-0736) and NestlÃ©: Leveraging The Difficult Discounter Station (IMD-5-0738) or alone. The instance describes some of the important strategic and tactical moves that Tesco made between 2005 and the early 1990s.

Tesco is broadly recognized as one of the most innovative and successful retailers on the planet. During the 15-year span it became the dominant supermarket retailer in the United Kingdom and the biggest retailer entire bookkeeping for over 13% of all retail sales in the UK. It was quite successful during this interval in including both Asda (obtained by Wal Mart in 1999) and three of the leading European difficult discounters.

Tesco Keeping The Hard Discounters At Bay case solution

The challenging discounters had a combined market share of less than 5%; more than 15 years after the first one entered the UK market. Learning objectives: The instance describes some of the strategy and approaches Tesco used to try and check the menace presented by powerful; low cost rivals. Participants and pupils have a chance discuss their effectiveness and to identify some of the important moves. It becomes clear in the discussion that Tesco has reacted in an extremely innovative manner to its low cost rivals. This results in a discussion about whether Tesco can continue to triumph as the hard discounters redouble their efforts and learn from some of their early mis steps.

Subjects: Retailing; Hard discounters; Marketing strategy; Competitive strategy; Loyalty program; Information technology; Branding
Settings: Retailing; United Kingdom; 2005;Â Â£37 billion