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Tesco and Sainsbury's

Describe Tesco and Sainsbury's business-level strategy.

Explain if you think the strategy is appropriate to offset the forces in the industry. Recommend any changes you believe should be made.

Describe any challenges you foresee.

Case 27 Tesco versus Sainbury's: Growth Strategies and Corporate Competitiveness weblink:

Solution Preview

Tesco has a fairly straight-forward approach to remain a competitive force in the industry: build bigger and better stores and sales will increase. The strategy has worked. In the mid-90s Tesco increased its store size by an average of 22%. Sales increased by 14% per square foot. During the same period, Sainsbury's increase store size by 10% and increased sales by only 3%. There are, ...

Solution Summary

Describes the strategies that Tesco and Sainsbury's stores use to drive the industry and competitiveness.