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Business Model: Comparison between Sainsburys and Tesco - Essay Example

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In this essay a comparison between two companies, Tesco and Sainsbury’s are handled. Their business models are handled independently in detail by addressing the various aspects of the general structure of a business model.
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Business Model: Comparison between Sainsburys and Tesco
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"Business Model: Comparison between Sainsburys and Tesco"

Download file to see previous pages The company was founded by Jack Cohen in the year 1919 and it started as a small group of market stalls and the name TESCO was coined after the founder, Sir. Cohen had imported tea from another company called T.E Stockwell. He used the initials of the name and combined them together with the part of his name (Surname) to form Tesco. The company the n started experiencing exponential growth in that by the year 1939 it had opened about a hundred stores all over the country. Market Segment For many years since its founding, the company mainly targeted the majority of the groceries customers. The company's management believed in the policy of stocking many products then selling them to people at all levels of life. The company strives to attract people at all levels of income i.e. high-income, middle-income and low-income earners. Its customers were the citizens in the countries in which the company had opened its stores and included European countries such as Ireland and Scotland. With time the company diversified its approach in business by embracing diversification in both commodity and service delivery. By the late 1990s for example the company had invested seriously in other fields such as in the opening of various petrol stations after coming into partnership with Esso which was a constituent of the large ExxonMobil Company. This was a measure targeted at the customers who drive to its stores. The company had also invested in the electronics business which involved dealing with the sell of TVs computer accessories and other peripherals. This targeted the youth and parents who intended to buy the various electronic gadgets for their children. The adventure into the entertainment world sealed the company’s aspiration of...
Business models play a big role in the success of any given company. They outline the various pathways which if followed diligently would definitely lead to the success of the company involved. Companies with more elaborate business models will definitely experience more success than those with less elaborate business models and this is one of the causes of the disparities experienced in the business world. It is however important to note that the real success lies with other external factors and which may include the approach taken by the management in the implementation of the business model. The shareholders decision might be destructive to company's endeavor to succeed as manifest by the family shareholders in the Sainsbury’s who have opposed some critical decisions from being implemented in the past. ...Download file to see next pagesRead More
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