Strategic Marketing: Tescos Fresh and Easy - Assignment Example

Strategic Marketing: Tesco’s Fresh and Easy (F&E) Fresh & Easy is an innovative concept by Tesco aimed at getting a hold of the United States market despite the high competition from Wal-Mart and Sainsbury among other competitors. The concept is aimed at delivering low cost health grocery for the low income earners in the United States. However, the Fresh & Easy concept is faced by numerous dilemmas as analyzed in the proceeding part of this paper. The main dilemma facing Fresh & Easy is that the concept lies in between the offerings by discount supermarkets including Wal-Mart and gourmet retailers like Trader’s Joe.

(Cravens and Nigel, 532) This is because F&E offers cheaper products than the gourmet stores and provides more organic and fresh products that discount supermarkets. The dilemma is the positioning a perfect and defensible positioning that will result in an increase in market share or is it one that will be copied and perfected by the competitors who will consist on new entrants and existing UIS firms and lead to a failure of the F&E. The other dilemma to Tesco from the F&E concept is the ability of the F&E to be expanded to other areas of America beyond California and Arizona for example New York, Wisconsin, and Oklahoma.

This is due to the high market diversity in the America. The other factor that affects this issue on expansion is the ability of these operations to be supported and protected by UK suppliers, with expansion, this may not be possible, and F&E will have to deal with local suppliers affecting the viability of the F&E concept and its success in America. The other dilemma to Tesco is the damage to the existing business of Tesco if the F&E venture fails. This will result in the believe by the competitors of the ability of beating Tesco even in the UK market creating another vulnerability coupled with the vulnerabilities of slow growth in UK and lack of an apparent successor to Leahy, whose tenure as CEO ends soon.

If F&E fails to succeed in the USA, Tesco’s aim of being Wal-Mart’s global competitor will halt. This may also result in restructuring of Tesco if the F&E fails leading to a slump in the stock market and the purchase by a strategic investor who will be supported by suppliers, leaving the business model broken. Work CitedCravens, David W, and Nigel Piercy. Strategic Marketing. Boston, Mass: McGraw-Hill, 2006. Print.