1. What are the keys to Tesco’s success in the competitive retailing industry?
Research, market segmentation, and in adapting its formats to the consumers in the various countries that they do business. For example, Tesco has four formats in the United Kingdom, and C –Two in Japan catering to the housewife on a bike that shops daily. In addition, Tesco’s joint ventures in India and China portends well for their success in the future and in the past.
2. In your view of the tough retailing environment, what changes do you think Tesco might be forced to make to the “Fresh & Easy” concept?
“Fresh & Easy” targets a very selective consumer – the wealthy and “busy”; the success of this concept is in its retail locations and the overall health of the US economy. Tesco might quickly find out that American consumers are quick to change their “eating” and “shopping” habits to save money. Store expansion needs to be done very selectively and carefully to prevent overexpansion diluting sales.