Tesco group

Disponível somente no TrabalhosFeitos
  • Páginas : 24 (5997 palavras )
  • Download(s) : 0
  • Publicado : 9 de abril de 2013
Ler documento completo
Amostra do texto
-------------------------------------------------

-------------------------------------------------
THE DEVELOPMENT OF AN EXTERNAL STRATEGIC MANAGEMENT AUDIT REPORT ON NEW ZEALAND
-------------------------------------------------

-------------------------------------------------

-------------------------------------------------
Prepared for:-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------
MASTERS OF BUSINESS ADMINISTRATION
-------------------------------------------------
INTERNATIONAL BUSINESS ASSESSMENT-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------
ANTHONY FITZGERALD 2126597
-------------------------------------------------
SINEAD KILGARRIFF 2125176
-------------------------------------------------
KAREN O’GORMAN 2123634-------------------------------------------------
SOFIE VAN ACKER 2126694
-------------------------------------------------
Executive Summary

This report was commissioned to examine the possibility of Tesco expanding into the New Zealand Market. The research draws attention to the fact that New Zealand is arguably a ‘cosy duopoly’ with two major grocery retailers competing for what can beconsider a very small market share. The larger of the two being ‘Foodstuff’ and Australian owned company holding onto a 57% market share with New Zealand owned Progressive Enterprise strongly competing with a market share of 40%. The size of the grocery market in New Zealand is NZ$12.7 billion (USD$8.89)

Retail growth is expected over the short term however slowly, improving year on year. As theeconomy recovers following the recent earthquakes in Christchurch and the restoration of damaged infrastructure, adding to that an increasing population the retail market is expected to grow (Euromonotor Jan 2012). Further investigations reveal that this market growth coincided with an increase in health awareness amongst consumers who regard fresh fruit and vegetables as an integral part oftheir diet and demand a greater range of produce on store shelves. In the last quarter of 2012 and Q1 2013, Progressive Enterprise announced an increase in the number of stores and investing NZ$180 million in an effort to increase market share is a warning sign for any company looking to enter the market and to aggressively compete against ‘foodstuff’ this move could be considered an overlyambitious and is also a builds on a danger of market saturation.

Tesco, with its strong competitive advantage, experienced in market entry strategy and financial backing has a possibility of entering into the market. The report evaluates this range and concludes that it would be an ideal candidate to meet the challenge presented by the New Zealand Market and could satisfy the new consumer demand sinceit has significantly experience in this area. However as it is a reasonably population 4.? Million and stagnant economy it may not be an extremely profitable move. According to (maybe some stats here) if Tesco are to enter into the New Zealand market is is advised to begin with a few flag-ship stores and built from there i.e. Tesco express. To work in conjunction with indigenous New Zealandsuppliers such as the ‘The Organic Farming Co-Operative’ recently being put into receivership and build on the ‘Buy New Zealand’ brand. Target the young professional technical savvy segment as their demands for a greater variety of products and the ability to shop online, the interdiction of the ‘Tesco club card’ is the main consumer demands driving the New Zealand consumers.
Table of Contents...
tracking img