Current Strategy Used By Tesco Plc Now - Essay Example

As the business grew, the company decided to diversify its products into areas like retailing clothing, electronics, furniture, books, software, and petrol. It also offers financial services, internet services, telecoms, music downloads, and DVD rentals (Tesco, 2013). The growth that the company has is down to the strategies that the company operates on.

Current Strategy Used By The Company Now

            A check of the company’s procedures and activities, one strategy that is clearly visible is the digitization of every operation and department. The company has extensively embraced technology and this has been the chief cause for its continued growth. It employs people who have the ability to utilize technology to the maximum and come up with products that will foster its sales. One of the most recent technological developments that the company has made is the creation of its own-brand hardware. The hardware is installed in the Hudl tablet, which is sold at numerous stores. The tablet was created to cater to every need of its customers. The tablet also is installed with all the digital services offered by the company making it an all-in-one gadget where people can find the companies music and Blinkbox movies. It also has Clubcard TV shopping for clothing, groceries, general merchandise, and banking. The Clubcard is a scheme where its loyal shoppers collect points for shopping at the company and its branches and for every amount spent by a customer; he or she earns points, which are redeemable. The points can be redeemed for holiday trips, gifts, treats, and many more.

            The company’s other strategy is to reach out to as many people as possible. It intends to bring the company as much near as it can to people and this has made it come up with the scan as you shop and drive-thru click-and-collect services (Tesco, 2013). Approximately 300,000 of its worldwide customers use the scan as you shop services. The drive-thru collection points have been widely opened within and a person living far from the company’s branch can order what he or she wants then goes and collects them at these points. This strategy has seen it open shops of different sizes and has different products. 

The largest stores opened are the Tesco Extras stores, mainly the hypermarkets, which are meant to serve its out-of-town customers. Tesco Extras have all the products and services range that the company offers to its customers. The Tesco Superstores are normally the standard supermarkets and store fewer non-food goods in them.

            To create a harmony of its operations and ensure it is flexible in its operations, the company uses the strategy of having different organizational structures in the different countries in which it is located. the structure a certain branch is to adopt should help in its operations as different regions and environments bring about different needs ( Mcloughlin & Aaker, 2010). These organizations' structures determine the people the branches hire to help reach their goals and contribute to their growth. The company also has a website that is managed around the clock. The website helps in online selling of its product, answering any queries some of its customers have, and dealing with any complaints from them. This website greatly helps in the advertisement of the company and its branches and in the collection of valuable data from its customers that help in its operations (Fernie, 2005).

 The Positives of the Strategies

            The used strategies have numerous positives to the company and they are the key reasons why the company experiences an upward surge in growth. The digitization of the company’s activities and products makes it possible for innovations as the company is extensively using technology. One of the notable innovations is the Hudl tablet that is specifically installed with the company’s own-brand hardware. The innovations make it become competitive as it sets the trend in the market. Online sale of its product has also been born from its digitization strategy. Technology has transformed the way things are done in the world and one notable one is the selling procedure. Most people do not have time to visit the company’s branches and thus order for whatever they need online. This has led to the coming up of delivery services to those who order their products online and this creates more job opportunities for people. As the company hires more people, it improves its public image among people and its customers creating customer loyalty. The use of different organizational structures is advantageous as it is an indirect way of decentralizing its operations. With the decentralization of the activities, the poorly performing branches can be identified and corrective measures are taken. Quick decisions can be taken in regard to certain situations that may befall the company’s branches and hence quick solutions are made (Quelch & Bartlett, 2006).

The Negatives of the Strategies

            Digitization of its operations leads to the emergence of more security threats. Hackers can get into the company’s system revealing the financial background of the customers. If such information gets into the wrong hands, it will definitely affect that particular customer. In case such a thing happens, the affected customer in the process ruining its image can sue the company. The company’s strategy of dwelling with technology leads to extra spending of its resources as technology is proving to be expensive (Quelch & Bartlett, 2006).