Why Would Customers Choose Tesco as Their Preferred Shopping Store?
Introduction
The customers are very smart in choosing the right products for them. Also there are aware about the right business establishment that they can trust in delivering the things that they needed. This is a great advantage for the business and every organization is looking forward to achieve the customer’s loyalty. The trust of the customers in the organization can be considered as the competitive advantage of the business on other rivals in the market.
Background and Problem Statement
Tesco, as one of the successful marketers in the Europe, is fully open for the expansions. Because of their appeal on the customers, there is no doubt that there is increase revenue. The organization’s operation in the central Europe expanded and influenced the other countries. The phases of the expansion are also identified as the organization’s plan in attempting to connect all the chains in the market. In addition, the acquisition of the stores is also part of the strategy which gained additional growth in their sales. The investigation of the growth sales of the organization is traced on the customer loyalty. However, it is still a mystery for the other competitors on why would the customers choose Tesco among the other shopping store.
Research Objective
The objective of the study is to understand the buying behavior of the customers in choosing the Tesco as their shopping store. In meeting this objective, the study can realize how powerful the customers can be.
Literature Review
Tesco can gained advantage among the competitors and successfully reached the other country, mostly where there is unsaturated retail market (Yoruk and Radosevic, 2000). Tesco managed to invest in most of the countries in Asia such as Thailand and South Korea. Slowly, the organization is emerging in the markets in Taiwan and continuously researching in the environment of Malaysia.
Unlike other retailers, the Tesco is still slow in exploiting the organizations potential in both Western and Asian markets. When Tesco entered in the market after the attack of the crisis, it has a potential in contributing to the transitioning of the economic situation and make it worse. Tesco can find stable position and be benefited when there is a strong presence of transition because of the two fold reasons. Firstly is that hypermarkets already exist in Asia, and Tesco already acquired the hypermarket chains, and second is the introduction of the emerging middle class that gathers more opportunity in shopping at a hypermarket (Yoruk and Radosevic, 2000; Tidd, Bessant, and Pavitt, 2001).
The confidence of the Tesco to create a market in Malaysia can be ambitious but because of the choice of the locations such as the non saturated markets that allows the market share to be generated, the success for the Tesco is foreseeable. In addition, the adaptation and adoption of the organization on the technologies aided the Tesco’s success, not only in the store management but also in training and in networking of the suppliers. Based on the organization’s philosophy in exporting, the given service can be only emphasized through the training and the network of the supplies which is possible in the operation in the foreign markets (Yoruk and Radosevic, 2000).The influence of the current structure of the market can give another opportunity for the organization to provide additional marketing strategies in capturing the additional number of customers. The entry of an investor in the market facilitates the market liquidity while ensuring the integrity. The activity involves in the trading industry are suited and conducive in the retail markets (Singh, 2001).
Methodology
The applied method in the study is the use of the secondary information that can detail the various reasons on why the customers’ chooses the Tesco among the other competitors in the market. In the application of the suggested method, the study can find the appropriate reasons regarding the customer’s buying decision.
References:
Singh, R.A., (2001). “The Development of a Corporate Bond Market: The Malaysian Experience”. Accessed 29 March 2010, from http://www.ifc.org/ifcext/publications.nsf/AttachmentsByTitle/Building_Local_Bonds_Chp.8/$FILE/Building_Local_Bonds_Chp.8.pdf
Tidd, J., Bessant, J., & Pavitt, K., (2001). “Managing Innovation: Integrating Technological, Market and Organizational Change”, John Wiley & Sons, New York.
Yoruk, D.E., & Radosevic, S., (2000). “International Expansion and Buyer-Driven Commodity Chain: The Case of Tesco”. Accessed 29 March 2010, from http://profesores.ie.edu/enrique_dans/TESCO/international%20expansion.pdf
Credit:ivythesis.typepad.com
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