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Tesco was basically a UK based supermarket which has expanded itself to several countries, personal finance, internet shopping

and product and services. They now have 923 stores all over the world. They believe that the increasing sales and purchase in the global market forms a significant part in its growth. (http://www.globalsources.com/PEC/PROFILES/TESCO.HTM) accessed on 28 Nov 2010 They are the worlds leading retailers, They have a well established strategies on which they work, which constitute the very strong base for their growth. (http://www.linkedin.com/companies/tesco) accessed on 28 Nov 2010 Ansoff Matrix for Tesco Existing Products Existing Markets New Products

Market Penetration

Product Development

New Markets

Market Development

Diversification

(http://www.quickmba.com/strategy/matrix/ansoff/) accessed on 28 Nov 2010 As part of our study lets analyze Tesco with the help of Ansoff Matrix. The matrix analyze a company based on two aspect market and product. Based on this there are four part, they are : Market penetration Product Development Market Development Diversification

Market Penetration of Tesco: When a company had made its name in the market it need to penetrate in to find out all the opportunity that it can exploit. Here Tesco has also made a good reputation in terms of its function. Now as part its market penetration activity it has undertook much activity. One such activity was when it tried to increase its market share through Tescos clubcard double point

scheme. Through this it has made its rival Asdas fall from 17.2% to 17% whereas it made a gain of .3% by raising its market share from 30.1% to 30.4%. (http://www.retail-week.com/data/kantar-worldpanel/tesco-market-share-up-as-it-piles-pressureon-asda/5010942.article) accessed on 28 Nov 2010 Product Development of Tesco: New product development forms a very vital part of retail business. Once the market go saturated with the existing product, there arise a strong need for a new product to retain the market share. Tesco pays high level of attention to it. It develops its products through various process starting from the research and development stage till the product is launched. Tescp also found out that the average lifecycle of product is 18 months, so it works accordingly to overcome. (http://news.bbc.co.uk/2/hi/programmes/working_lunch/education/2518475.stm) Accessed on 28 Nov 2010 Market Development of Tesco: Now if the company feels that the existing product have reached a level of saturation in the present market then it can look for new market to put forward the same product. As an example Tesco has recently found out the potential of its business in Poland. Therefore Tesco is into full-fledged expansion into Poland, this shows its market development. (http://www.wbj.pl/article-52259-tesco-plans-aggressive-expansion-in-poland.html) accessed on 28 Nov 2010 Diversification of Tesco: It could be said that when the demand for the existing product have reached saturation the existing market has gone, then there arise a need for the diversification. It could be well visible through the aspect where Tesco was first limiting itself in UK as a super-market later only they have come to know about the possibilities of personal finance, product and services. ((http://www.globalsources.com/PEC/PROFILES/TESCO.HTM) accessed on 28 Nov 2010.

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