Business in Action written assignment Essay Example | Topics and Well Written Essays - 1250 words

Business in Action written assignment - Essay Example 1. Introduction A successful business model can be defined as the way an organization creates; delivers incarcerate value to the customers. Experts believe that a successful business model must contain nine building blocks. Those blocks provide thee much required strong base to the business. Those nine blocks include customer segments, channels, and relationships with customer, value proposition, revenue streams, main resources, main activities, main partnerships and cost structure. The study has been conducted to analyze the business model of a company and understand the contribution of the nine blocks to the success of the business. The company to be discussed in this study happens to be Tesco PLC. Tesco PLC is an English multinational retailer. It is believed to be top retail outlet in the UK. The Headquarters of the company is Chesnutt, UK. It is also the third largest retailer in the country, after Walmart and Carrefour. The company has stores in fourteen countries across Europe , Asia, and North America (Chesbrough, 2007, p.45). 1.1. Value Proposition Value proposition block describes the products or services offered by the company. The offerings of the company creates value proposition for Tesco. Both through online and retail stores the company seeks to deliver value by providing a great shopping trip to the customers. One of the core values of the company is that no one tries harder for the customers than Tesco. This is very much visible in the way the company strives to improve the shopping experience. This includes all the key elements including product range, quality, availability, price and even company loyalty schemes. Irrespective of the country the modus operand of the company keeping the customers and their needs into focus remains same when it comes to delivering value (Buttle, 2012, p.107). 1.2. Customer Segments Market Segmentation can be defined as dividing a market in to different parts or group. Market segmentation can be classified as mas s segmentation, niche segmentation, segmented marketing, and differentiated segmentation. After analyzing the product mix of Tesco; it can be summed up that the company goes for differentiated segmentation as it offers a wide range of products to the customers. The product mix of the company includes Jewelleries, Sports accessories, Food and groceries, technology and gaming related products, clothing, Baby and Toddler, etc. So, the technology or gaming related products may attract the people belonging to the age group of 18 to 25 (male). The baby and toddlers are targeted towards kids, where as Jewelleries could be targeted towards the female population. Such market segmentation strategy helps the company to reach to different market segments (McDonald, 2012, p.54). 1.3. Customer relationships Managing customer relationships is all about the game of acquiring, satisfying and retaining the customers. Studies have shown that it is five times more difficult to acquire a new customer ra ther than holding on to an existing one. Studies have also revealed that companies round the globe make 65% of their revenues from existing customers. Tesco seems to be a firm believer of this philosophy. Best way to make customers happy is to listen to them well act accordingly, so that their problems can be solved enhancing the customer experience.