While Carrefour and Walmart have struggled to win over consumers, Tesco has tailored its service well to local tasted with Homeplus. Homeplus is a value store which feature coffee shops and restaurant
-In Japan, Tesco acquired C-Two, a small discount convenience store. Before enterring the market, a team have observed Japeneese consumers
1.What are the keys to Tesco’s sucess in the competitive retailing industry ?
Tesco’s slogan, “Every Little Helps”, is applied in their committment to building and maintaining good relationships with suppliers and distributors. They have developed one of the best supply chains in retailing.
2.In view of the tough retailing environment, what changes do you think Tesco might be forced to make to the « Fresh & Easy » concept ?
Americans tend to have larger cars and better roads than Europeans or Asians. The idea to have smaller stores catering to smaller area is different, but it may not be the best in a country where people are able to conveniently buy in bulk.
3.Which of the market entry strategies identified in the chapter is Tesco using in the US, Do you think this is the appropriate strategy ?
Tesco used the Organic growth strategy by building their own new stores in the United States. Due to the level of difficulty entering the retail market in the United States, they probably should have considered an acquisition strategy instead.
LIDL explores further expansion in Global retailing
Since the credit crunch, we have seen a high popularity and relevance for Discount stores. Retailer such as LIDL have successfully established branches to serve the price sensitive segment of the society. In UK, the major strenghts of lidl are low prices and wide range of products. Lidl emphasizes that Customer satisfaction in relation is its core business. Lidl offers a wide range of items and provides nutritionals guides with most important nutrients and calories. Lidl attract peoples of all ages and backgrounds
Threats :
Competition : War of prices because
Aldi, which have also a low-price strategy
Tesco and ASDA which try to improve their value-range items
The low-income consumers are not loyal to brands of grocery but are loyal to the price.
1.As lidl intensifies its efforts to increase its presence in the global marketplace, what are the major likely opportunities it could explore and the threats it should be prepared to confront ?
Opportunities :
Since the credit crunch, we have seen a high popularity and relevance for Discount stores.
Threats :
Competition : War of prices
Aldi, which have also a low-price strategy
Tesco and ASDA which try to improve their value-range items
The low-income consumers are not loyal to brands of grocery but are loyal to the price.
Lidl want to spread its relevance to other parts of the world
2.What are the keys success factors of Lidl in the UK and could these be replicated in the new territories being targeted for future expansion ?
KLLidl success ‘s is based on its commitment to offering customers top quality products at the lowest possible prices. The key to this success is simplicity. It’s the place where quality is cheaper the major strenghts of lidl are low prices and wide range of products.
To increase its globla presence, Lidl have to keep low price but the challenge for lidl is to keep in mind that culture-sensitive localisation is essential
LVMH
1. Bernaud Arnault has built LVMH into a luxury goods empire by making numerous acquisitions. What strategy is evident here? LVMH or more specifically Bernaud Arnault wants luxury items to appeal to everyone, not just the wealthy and elite as in the past. The major issue in doing this is to keep the core luxury consumers, which means still keeping the product exclusive or exclusive feeling, while making the product available to a larger market. LVMH has used licensing deals in order to make this products not only accessible, but at the same exclusive or prestigious to own.
