Tesco and Its Competitiveness

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Tesco and its Competitiveness

Introduction

According to Mentis (2013, p. 3), Tesco’s core value is to generate for its customers and earn their life loyalty through monitoring the main performance indicators. Today, Tesco’s strategic strength emanates from its hybrid position on the strategic outlook. The company offers a wide range of branded and own brand products in clean, modern and efficient supermarkets with ample parking and facilities for children and yet appears to offer lower prices (Angwin, Cummings and Smith, 2011, p. 3). The company underpins the low prices with low costs which it enjoys from its buying power. According to the resource-based approach, an organization’s competitive advantage comes from the unique capabilities of its resources which not only define, but also generate an organization’s strategic capacity (Jones & Tilley 2007, p. 124). Resource based theorists like Grant argue that management strategies purporting to maximize opportunities are constrained by imperfections of the market and the fact that not all resources necessary for securing competitive advantage can be found and bought in the markets. Consequently, a firm’s competitive advantage lies in what is unique and embedded in its resources in terms of its core distinctive capabilities (Jones & Tilley 2007, p. 124). Therefore, distinct capabilities inform, mold, shape and generate an organization’s strategic capacity.

Ideally, the current Tesco’s key indicators reflect on the company’s responsible behavior in terms of treating the environment, suppliers and buyers, local communities, its customers and the company’s current and future employees positively. Additionally, Tesco refers to fair, strong, mutually-beneficial and long-term partnerships with suppliers that emphasize its determinations to achieve a sustainable and efficient supply chain (Witcher & Chau…...

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