I. Referring to the Tesco case:
1. Why has Tesco been so successful?
a. They pile it high and sell it cheap for price sensitive customers
b. Leaky set a 3 clear objectives
i. W in grocery retailing in U.K ii. Expand into non-food business iii. Grow tescos int. footprint
c. Leaky was concentrating on
i. Motivating employees ii. Motivating store mang. iii. Customer satisfaction
d. Tescos club card
i. Cash back and redeemable vouchers ii. Acted as a research tool that enabled tesco to better shape the assortment in each store to respond to needs of its surrounding neighborhood
2. Which success factors are or are not transferable to the United States?
a. US market size – 600 billion
b. Growt potential is impressive and tempting
c. Us grocery retail market is mature and cluttered
d. Many experience companies are battling for market share
e. Groceries are conveniently sold in outlets (including mass merch and drug stores) beyond mainstream grocery stores
f. So tsco should enter into this with the same mission, objectieves and value but with more accuracy in executiong of store format
g. Time pressed customers can quickly find out what they need in stores that are considerably smaller then average supermarket but larger than convenience store where consumer might stop for snacks
3. Was Tesco smart to enter the United States market? In California, Arizona, and Nevada?
a. Tesco had a strong record of successful international expansion )except in japan)
b. US consumers were sowing interest in wellness and health conscious food choices and fresh and easy were offering fresh food at an affordable price
c. California had higher per capita income then US as a whole and was offering a rapidly