Why is it important that tesco analyse their current situation?

Well, not just tesco, many companies analyse their current situation in order to compete in this business environment. As we all know there are booming of many hypermarkets, such as Giant, Carefour, Jusco, and so on. All of them employ their very own strategies to attract people to shop at their market.

I don't know excatly what Tesco analyse nor how they analyse. Look at their current situation, they offer their very own new membership, compare last time they use BonusLink. The benefits of doing so is that they have the full control of the rewards system for their customers. And they can also save the expenses for BonusLink, meaning they can cut more cost. But the bad thing is it might lose some customers, as there are so many people holding the BonusLink card, suddenly Tesco change to their own membership, some people will think that "since Tesco no longer have the BonusLink, I just shop anywhere I want". Although this is a minor disadvantage, but it can significantly affect the business performance if Tesco do not handle it carefully. From what can I see at Damansara Tesco (near The Curve), Tesco open a booth there and invite many people to register as a member for their new membership. If Tesco do not analyse their situation, what will happen? They might not open the booth, and when the customers go to the line and ready to pay together with the BonusLink card, but end up dissappointed, Tesco will suffer a serious damage cause custoemr will switch to another market.

Another current event of Tesco is Tesco Extra. Tesco acquire Makro and convert it to Tesco Extra. What Tesco do is they operate it similar to Makro, but more flexible. Lets say Makro do not allow customer to buy in small quantity, but Tesco Extra allow but charge higher then those buy in bulk. By doing so, Tesco could earn profit from those SME as well, besides individual customers or family type custoemrs. If no analysis have been done, Tesco won't adopt such strategy. Whether it is a success or failure still an unknown cause it is still new.

As you can see from above example, Tesco analyse their current situation and adopt strategies to compete with other hypermarkets. Previously Tesco is not doing so well, because the its parent (SimeDarby) and other side lines do not perform well. If Tesco do not take the initiative to improve the business, the group will finish.

Hope that this information could help you.