Assignment: Unit 4.1 - Tesco

IB BUSINESS & MGMT HL C 2024
2024-08-16T19:43:32Z

Due: Sep 22, 2024 by 11:59pm

In 2013, Tesco, the UK supermarket giant, introduced restaurants and coffee shops in many of its larger stores in an attempt to attract customers back to its stores. In response to its own market research, Tesco opened almost 300 restaurants in its supermarkets, and many more coffee shops, with the operations outsourced to catering firms Elior Group and Compass Group.

The grocery giant’s cafe concept offers everything from breakfasts to salads and roast dinners. The additional services cater for customers who do not necessarily shop regularly at Tesco, but also provides value added services for its millions of customers each week. Tesco had been losing market share to the growing emergence of discount supermarket companies such as Germany's Aldi and Lidl, as well as many customers spending more ordering groceries online.

(a) | Define the term market share. |
(b) | Explain whether the above example illustrates market orientation or product orientation. |
(c) | Which of Porter's Generic Strategies does Tesco use? Support your answer with reasons from the case study. |

In 2013, Tesco, the UK supermarket giant, introduced restaurants and coffee shops in many of its larger stores in an attempt to attract customers back to its stores. In response to its own market research, Tesco opened almost 300 restaurants in its supermarkets, and many more coffee shops, with the operations outsourced to catering firms Elior Group and Compass Group.

The grocery giant’s cafe concept offers everything from breakfasts to salads and roast dinners. The additional services cater for customers who do not necessarily shop regularly at Tesco, but also provides value added services for its millions of customers each week. Tesco had been losing market share to the growing emergence of discount supermarket companies such as Germany's Aldi and Lidl, as well as many customers spending more ordering groceries online.

(a) | Define the term market share. |
(b) | Explain whether the above example illustrates market orientation or product orientation. |
(c) | Which of Porter's Generic Strategies does Tesco use? Support your answer with reasons from the case study. |