BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Tesco falls under the cost leadership category where its drive is to be the lowest cost operator in the industry. To be a cost leader, investment is required in production technology and high quality staff. Tesco’s prices are lowest compared to Sainsbury’s, and Morrison, and very close to Asda, its main competitive.

Detailed explanation-2: -Perhaps the most famous cost leader is Walmart, which has used a cost leadership strategy to become the largest company in the world. The firm’s advertising slogans such as “Always Low Prices” and “Save Money. Live Better” communicate Walmart’s emphasis on price slashing to potential customers.

Detailed explanation-3: -Business level: Business level strategy is the plan to attain a competitive advantage by using resources and competencies. In Business level strategy, management has three available options which are cost leadership, differentiation and focus. In Tesco, management highly focused on the cost leadership strategy.

Detailed explanation-4: -Definition: Cost leadership is a term used when a company projects itself as the cheapest manufacturer or provider of a particular product or commodity in a competition. It is difficult to deploy the strategy because the management must constantly work on reducing cost at every level to remain competitive.