Tesco’s Operations and Policies in relation to Porter’s Diamond Model

1996 Words Nov 21st, 2013 8 Pages
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Tesco’s Operations and Policies in relation to Porter’s Diamond Model

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Table of Contents
Table of Contents 2
Introduction 3
Porter's Diamond Model 3
Factor Conditions 4
Demand Conditions 4
Related and Supporting Industries 4
Firm Strategy, Structure and Rivalry 5
Tesco’s Historical Expansion and Current Position In Relation To Porter’s Diamond Model 5
Factor Conditions Vs Tesco’s Historical Expansion and Current Position 5
Demand Conditions Vs Tesco’s Historical Expansion and Current Position 6
Related and Supporting Industries Vs Tesco’s Historical Expansion and Current Position 6
Firm Strategy, Structure
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Factor Conditions Vs Tesco’s Historical Expansion and Current Position
The US Bureau of Labor Statistics (2010) as cited by the Gong (2013) asserts that by April 2010, about 14 million people were actively involved in the operations of the country’s retail sector. Companies targeting the US market would therefore benefit from readily available labor within the US retail industry. The well developed infrastructure that defines the US transport network is important in aiding the movement of raw materials from suppliers within the relatively shorter periods of time. Tesco Plc deals in food products that need to be moved within shorter durations of time necessitating the need for modern infrastructural facilities that are available in the US. The company’s policy that utilizes the local talent also made the US a potential foreign market due to the availability of ready workforce in the country over a long period of time. According to the Gong (2013), the Asian Markets such as China have high populations that offer affordable labor as well as a ready market to players within the retail industry. The major challenge that investors in the global retail industry face relates to the high costs required in setting up all the necessary facilities.
Demand Conditions Vs Tesco’s Historical

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