Tesco Marketing Strategy :: Marketing Business Management Essays

Tesco marketing strtegy IncompletePART ONE STRATEGIC ANALYSISManagers face difficulties in trying to understand the encionment. startle the environment encapsulates many different influences the difficulty is making sense of this diversity in a way which can contribute to strategic decision making. The secant difficulty is that of uncertainty, managers typically claim that the pace of technical change and the speed of global communications mean more and faster change now than ever so before.1.Analysing the environment1.1 Auditing environmental Influence------PEST AnalysisAs a starting point, it is useful to consider what environmental influences have been particularly important in the past, and the extent to which in that location are changes occurring which may make any of these more or less significant in the future for the organization and its competitors.PEST Analysis involves identifying the political, economic, social and technological influences on an organization. It is i ncreasingly useful to relate such influences to growing trends towards globalizations-of possible futures, to consider the extent to which strategies might need to change.1) Political/legal- Monopolies legislation- Environmental protection laws- Taxation policy- Foreign trade regulations- Employment law- Government stability2) Economic factors- Business cycles- GNP trends- Interest rates- currency supply- Inflation- Unemployment- Disposable income- Energy availability and cost3) Socio cultural factors- Population demographics- Income distribution- Social mobility- Lifestyle changes- Attitudes to work and leisure- Consumerism- Levels of education4) scientific- Government spending on research- Government and industry focus on technological effort- New discoveries/development- Speed of technology depute- Rates of obsolescence1.2 The Competitive Environment-------Five Force ModelThe next step in environmental analysis is moves the focus towards an explicit consideration of the immedi ate environment of the organization-for example, the hawkish arena in which the organization operates. Five-force analysis provides a means of identifying the forces which determine the nature of the competitive environment, especially in terms of1) Barriers to entry.2) The power of buyers.3) The power of suppliers.4) The panic of substitutes.5) Other reasons for the extent of competitive intensity.1.3 Identifying The Organizations Competitive Position---------Strategic Group AnalysisSTRATEGIC GROUP ANALYSISThe next major step in environmental analysis is analysis the organizations competitive position that is how it stands in relation to other organizations competing for the same resources, or customers, as it.One difficulty in analyzing competition is that the idea of the industry is not always helpful because its boundaries can be unclear and are not likely to provide a sufficiently precise delineation of competition.Strategic group analysis aims to identify organizations with similar strategic characteristics, following similar strategies or competing on similar bases.