Tesco: 7 Step Strategy for Growth

This is Part 2 of my look at Tesco. Chief executive Philip Clarke just announced his seven-step strategy to build on the company's momentum for continued growth:

1. Grow the UK core business, which is the backbone of the business.
2. Be an outstanding retailer, in stores and online.
3. Be as strong in all products sold as in the core food product ranges.
4. Grow retailing services (such as financial services) in all markets.
5. Put sustainability and responsibility to local communities at the heart of the business.
6. Create highly valued brands that win and retain customer loyalty.
7. Build the employee team to be able to create more value for customers and others.

Clarke understands that technology is vital to implementing this vision of Tesco's success (especially step #2). Many of Tesco's customers are already online, and the company must catch up to their needs, behaviour and preferences in all markets.

Private brands (step #6) are another key to Tesco's success, because they differentiate the retailer and offer customers compelling, tangible reasons to shop at Tesco rather than at a rival store. Clarke's plan to use private brands more aggressively is an excellent way to further strengthen the retailer's competitive advantage.