2. Home plus (Company overview)
ï Tesco has an 81% stake in the Samsung-Tesco venture,
which operates Homeplus supermarkets.
ï Tesco stared its operation in London UK in 1919s as a retail
store.
ï It is operating in 14 different country.
ï Tesco invested $ 3.2 billion in south Korea as a part of their
expansion plan.
3. Continue..
ï The company retail store business increased the number of
superstores from 7 to 13 within 4 years.
ï Tesco also started 24 stores in Thailand and 1 in Taiwan
and looked to starting operations in Japan, China and
Malaysia.
4. Alternative business strategy
ï How can company grow with out increasing the
number of retail store?
ï Homeplus has the answer- virtual subway stores.
ï What is virtual subway store?
ï http://www.youtube.com/watch?v=nJVoYs
Bym88&feature=player_embedded
5. Why company adopted such strategy
ï S.Koreans are the second most hard working people in the
world.
ï After the week of hard work and due to limited time it
would be difficult for people to spare time after grocery
shopping.
ï To tackle this problem Homeplus came up with idea of
opening virtual store.
6. Result of the new strategy..
ï Homeplusâ online membership increased by 76%
ï Online sales increased by 130%
ï Homeplus became number one in the online market
ï It is even became a very close second, in offline
market
7. Strengths..
ï Succeed to attract pool of tech and time savvy
people.
ï Established brand name
ï Successful history of operation
ï Experienced staff
ï Innovative Technology
8. Weakness..
ï If the range of the product is changing, it would be
costly to create virtual store all over again with IQ
code technology.
10. Opportunity..
ï Company can introduce this successful
business model with the same technology in
developed country.
ï They can diversify to attract new customers.
ï Can establish it self as value brand through
offering competitive prize.
11. Indirect Competitors..
ï E-BAY
ï Amazon
ï Home plus's strategy is competently
different from these online retailers.
ï E bay provides platform to both buyers and
sellers.
12. Summary..
ï Homeplus has used alternative marketing
strategy by delivering to the door steps of
customers rather brining customers to
stores door steps.
Thank you..