Tesco Lotus

Since 1998, Tesco Lotus opened its first branch in Asia (Thailand). Tesco lotus has become successful and grown rapidly. After analyzing Tesco Lotus, it could become even more successful by expand its plants into other areas. However, Tesco Lotus needs to help those family shop houses who are afraid of being unemployed.
In Tesco Lotus Company uses value chain to provide systematic methods and ways, in order for them to function in the divided section, which therefore it can be grouped, according to its prospective. In additional, the company combination with the organization units/ department, which create ideal linkage connection. The organizational structures have provided mechanisms for injunction, which is related linkages in the value chain and it is believed that it has played major roles in internal and external of the organization.
One of the most important key factors for Tesco Lotus’s success is its service. Tesco Lotus tries hard to reach its customers’ satisfaction. “It creates values for customers in order to earn lifetime loyalty. Tesco Lotus understands customers better and is more energetic and innovative using exceptional strengths to deliver unbeatable value to customers.” And this factor made Tesco Lotus the leading discount store of all in Thailand. First of all, Tesco tries to make customers’ shopping place more convenient by providing various kinds of services for different kind people. It provides carts, mini carts (especially designed for children), carts with baby seat, wheel chairs (for disable people), and baskets. It also provides pure drinking water while customers are shopping. Furthermore, cart lockers are provided for storing goods when customers eat. Besides these, Tesco Lotus provides after sales service, which customers can a free delivery for home appliances, free maintenance, and special low installation fee. Carry to car service, shuttle bus play land for kids, secured car park, etc are also provided. In addition, Tesco Lotus’s website gives visitors some tips for main dish, dessert recipe and apparel tips plus techniques. However, these services can be easily imitated by its competitors. Tesco Lotus moreover has its own credit card and member privilege, which offer discount and points when buying goods, points can be collected for more discount the next time. Due to the fact that Tesco Lotus is a discount store, which sells finished goods obtained from its suppliers. Since lotus has huge purchasing power , therefore they are enable to purchase goods at lower selling price for example a wholesales price for a can of coke from the local distributor is 13 baht but Tesco Lotus could obtain it at a lower price. This is the reason why lotus could deliver same products as the market at lower margin price. Lotus has diversified its customers into 2 groups the retails and wholesales which is why they have to ensure about the purchasing process so that it could obtain the lowest cost. Lotus acts not only as a middle man but also a main distribution channel for the main supplier