#m406

1. (Home plus virtual store)
Raj Rakholiya
Yusuf Kawoya
Will Mayers

2. Home plus (Company overview)
 Tesco has an 81% stake in the Samsung-Tesco venture,
which operates Homeplus supermarkets.
 Tesco stared its operation in London UK in 1919s as a retail
store.
 It is operating in 14 different country.
 Tesco invested $ 3.2 billion in south Korea as a part of their
expansion plan.

3. Continue..
 The company retail store business increased the number of
superstores from 7 to 13 within 4 years.
 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
 How can company grow with out increasing the
number of retail store?
 Homeplus has the answer- virtual subway stores.
 What is virtual subway store?
 http://www.youtube.com/watch?v=nJVoYs
Bym88&feature=player_embedded

5. Why company adopted such strategy
 S.Koreans are the second most hard working people in the
world.
 After the week of hard work and due to limited time it
would be difficult for people to spare time after grocery
shopping.
 To tackle this problem Homeplus came up with idea of
opening virtual store.

6. Result of the new strategy..
 Homeplus’ online membership increased by 76%
 Online sales increased by 130%
 Homeplus became number one in the online market
 It is even became a very close second, in offline
market

7. Strengths..
 Succeed to attract pool of tech and time savvy
people.
 Established brand name
 Successful history of operation
 Experienced staff
 Innovative Technology

8. Weakness..
 If the range of the product is changing, it would be
costly to create virtual store all over again with IQ
code technology.

9. Threats..
 Threats from hackers
 Power failure
 Technological break down
 Competitors

10. Opportunity..
 Company can introduce this successful
business model with the same technology in
developed country.
 They can diversify to attract new customers.
 Can establish it self as value brand through
offering competitive prize.

11. Indirect Competitors..
 E-BAY
 Amazon
 Home plus's strategy is competently
different from these online retailers.
 E bay provides platform to both buyers and
sellers.

12. Summary..
 Homeplus has used alternative marketing
strategy by delivering to the door steps of
customers rather brining customers to
stores door steps.
Thank you..

13. Sources
 http://www.tescoplc.com/
 https://twitter.com/#!/uktescooffers
 http://www.facebook.com/tesco
 http://en.wikipedia.org/wiki/Tesco