OUT SUPPLY CHAINING THE KING OF SUPPLY CHAINERS The closing case discusses the success of the U K based food retailer, Tesco It successfully competes against Wal Mart in Europe, and has recently entered the U S market on the west coast with a chain called Fresh Easy They focus on quality private label products and extremely competitive prices Key Points Wal Mart is the largest retailer with revenues of $419 billion in 2010, and the key to their success is supply chain management They were one of the first to use point of sale scanners to track customer sales enabling them to react quickly to changing customer behavior buying patterns Because of their size and market dominance they have been able to force suppliers to reduce prices to them Tesco is Wal Marts rival in Europe, and they are now the third largest retailer in the World In November 2007, Tesco entered the U S market, with a chain of food stores called Fresh Easy in California, Arizona and Nevada Each of the outlets were a 10,000 square foot convenience type store that offered quality specialty products at extremely competitive prices Tesco has the ability to manage vast reams of data and translate that knowledge into sales They offer one of the best and broadest range of private label products Tesco uses information gleamed from DUNNHUMBY, a British Data Mining firm, of which Tesco has majority control To manage every aspect of its business from creating new store formats, to arranging store layouts, to developing private label products and target sales promotions Tesco focuses on fresh, healthy food and quick service Tescos private label line of products has been identified as on of their key to success, as they have been able to convince customers that they are as good as the brand name counterparts Case Questions What might Wal Mart do to counter Tescos actions Tesco, of course is a food retailer How vulnerable might Wal Mart be to similar competition from a non food retailer The global recession has slowed down Tescos plans for expansion Why might Tesco have been more harmed by the recession than Wal Mart

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OUT SUPPLY-CHAINING THE KING OF SUPPLY CHAINERS The closing case discusses the success of the U.K. based food retailer, Tesco. It successfully competes against Wal-Mart

OUT SUPPLY-CHAINING THE KING OF SUPPLY CHAINERS

The closing case discusses the success of the U.K. based food retailer, Tesco. It successfully competes against Wal-Mart in Europe, and has recently entered the U.S. market on the west coast with a chain called Fresh & Easy. They focus on quality private label products and extremely competitive prices.

Key Points

Wal-Mart is the largest retailer with revenues of $419 billion in 2010, and the key to their success is supply chain management.
They were one of the first to use point of sale scanners to track customer sales enabling them to react quickly to changing customer behavior buying patterns.
Because of their size and market dominance they have been able to force suppliers to reduce prices to them.
Tesco is Wal-Marts rival in Europe, and they are now the third largest retailer in the World.

In November 2007, Tesco entered the U.S. market, with a chain of food stores called Fresh & Easy in California, Arizona and Nevada.
Each of the outlets were a 10,000 square foot convenience type store that offered quality specialty products at extremely competitive prices.
Tesco has the ability to manage vast reams of data and translate that knowledge into sales.
They offer one of the best and broadest range of private label products.
Tesco uses information gleamed from DUNNHUMBY, a British Data Mining firm, of which Tesco has majority control. To manage every aspect of its business from creating new store formats, to arranging store layouts, to developing private label products and target sales promotions.
Tesco focuses on fresh, healthy food and quick service. Tescos private label line of products has been identified as on of their key to success, as they have been able to convince customers that they are as good as the brand name counterparts. Case Questions

What might Wal-Mart do to counter Tescos actions?
Tesco, of course is a food retailer. How vulnerable might Wal-Mart be to similar competition from a non-food retailer?
The global recession has slowed down Tescos plans for expansion. Why might Tesco have been more harmed by the recession than Wal-Mart?