Business students need to study a lot of case studies during their courses. Since formulating business success formulas from case studies is not simple, many even take case study help. That, however, does not decrease the significance or importance of case studies in their courses. On the contrary, business graduates have been consistently monitoring such case studies for a long time to know about the nuances of business operations and what makes them successful.
On that note, let’s look at the business model of the British retail giant Tesco to understand what makes them so successful.
- Branding and reputation
Since its inception in 1919, it has spread its wings across twelve countries worldwide. According to the Tesco case study, it is the largest retailer in the UK and serves over 70 million customers each week. This has been made possible by branding and their reputation over the years.
Tesco is one such company that has always relied heavily upon its world-class branding and clean reputation to grow. They understood that being in the retail market, they need to reach as many people as possible to grow. With aggressive branding strategies, they managed to reach every home of the countries they operate in.
Although they started their operation with groceries, gradually, they broadened their umbrella so much that people now remember Tesco for buying any product.
- Integrating technology into Business
We have seen that Tesco has an effective expansion strategy. They managed to diversify their operations in twelve countries with the help of innovative technology. Modern business environments are highly volatile, complex, and dynamic. You always need to be updated about changing demands and trends. Tesco managed to maintain that by using technology at the right time.
Tesco has highly effective software that can control all their business operations. You can track customer purchases, control inventory, facilitate digital transactions and oversee the performance of various departments using their technology.
- Efficient Supply Chain Management
Supply Chain Management can be treated as one of the most important ideas in modern business. Many multinational organizations like Neste, CISCO, Colgate, etc., are giving more emphasis on SCM. We can see that they have had an almost 10% revenue increase since 2010 by implementing better supply chain management.
Tesco maintains excellent relationships with their suppliers and offers them long-term deals that encourage them to provide better services all the time. Tesco is successful because they do not go into the market and pick any random suppliers they find. Instead, they have a strict policy to only work with vendors who understand their business models and express interest in them.
We can get a fair idea about this model from their recognitions in the Trading Fairly Awards, where they got rewarded for creating excellent working conditions with suppliers and employees.
- Market Research
Market research is the key to success irrespective of having a small business or large. Market research is essential because it enables companies to know everything they need to make business decisions. Companies use market research to know their customer base, customer needs, and interests.
Tesco implemented its research strategy well enough to understand all of these. Not only that, but Tesco also understands that in the retail market, the changes are evident, and demands are ever-changing. So, they used to do market research at regular intervals to get a continuous update on how they also needed to adapt their stock.
The famous Tesco loyalty card is also a result of the market research by Tesco. They went through the studies and saw the amounts people spend at their stores. The inclusion of loyalty cards helped them to attract many one-time users, thus increasing their profit.
Tesco is the perfect example of organizational success using quality product delivery, superb branding, and cutting-edge technology to streamline their business operations. Their operational models have become benchmarks for many other retailers. One look at the Tesco case study will help us understand how the embracement of technology and diversification enabled them to become one of the largest retail tycoons in the world.
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