Tesco versus Sainsbury's: Growth Strategies and Corporate Competitiveness

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In 2008, the UK-based international food and general merchandising retailer Tesco reached a market share of about 30% in the UK, roughly the same as its rivals Sainsbury's and ASDA combined. Tesco has greatly diversified, extending its business lines from food into non-food, clothing, financial services, and telecommunications. It ranks sixth in the international retail market behind Wal-Mart (US), Carrefour (France), Home Depot (US), Metro (Germany), and Royal Ahold (Netherlands).
Tesco was not always the dominant player it is today. In 1990, it was a mid-sized food chain far behind its rival, Sainsbury's. Starting in the 1990s, it pursued a broad set of growth initiatives, steadily increasing its market share and gaining importance. In 1995, Tesco surpassed Sainsbury's to become the UK's market leader. Today, Tesco is the clear market leader. How did that happen? Why was Tesco so successful in growing sales and profits, while Sainsbury's could not keep pace? Where did the competitive actions of these firms differ? Let us start with a close look at their origins.

Authors Kreutzer, Markus & Lechner, Christoph
Editors Volberda, Henk W.
Language English
Keywords case study, corporate competitiveness, RoCC, growth, retailin, food, diversification, alliances, M&A
Subjects business studies
HSG Classification contribution to education
Refereed Yes
Date 2011
Publisher South-Western Cengage Learning
Place of Publication Andover, Hampshire
Page Range 377-393
Number of Pages 17
Title of Book Strategic management : competitiveness and globalization ; concepts and cases
ISBN 978-1-4080-1918-4
Depositing User Prof. Dr. Markus Kreutzer
Date Deposited 12 Apr 2010 09:33
Last Modified 23 Aug 2016 11:07
URI: https://www.alexandria.unisg.ch/publications/61708


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Kreutzer, Markus & Lechner, Christoph: Tesco versus Sainsbury's: Growth Strategies and Corporate Competitiveness. In Volberda, Henk W. (ed.): Strategic management : competitiveness and globalization ; concepts and cases. Andover, Hampshire : South-Western Cengage Learning, 2011, S. 377-393.


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