TESCO
RESOURCED BASED VIEW THEORY:
Defined as:
The process by which organizations can assemble a unique portfolio of resources that will render them a competitive advantage. The resource-based view (RBV) of the firm (Wernerfelt, 1984; Barney, 1991) suggests that organizations should invest in those resources and capabilities that they believe will best assist them in successfully gaining a sustainable competitive advantage
Resources: Wernerfelt (1984) originally defined resources as ‘anything that could be thought of as a strength or weakness of a firm’. In a similarly inclusive vein, Barney’s (1991) definition of resources included ‘all assets, capabilities, organizational processes, firm attributes, information, knowledge etc. controlled by the firm to conceive and implement strategies that improve its efficiency and effectiveness’ Amit and Shoemaker (1993), namely: ‘stocks of available factors owned or controlled by the firm’.

Capabilities: Helfat and Peteraf’s (2003, p. 1000) definition of a capability: an organization’s ability to ‘perform a set of coordinated tasks, utilizing organizational resources, for the purposes of achieving a particular end result’.

Key Resources and capabilities:
E-commerce – Tesco online shopping services
Human resource over 530000 employees
Financial capabilities annual turnover and profits
Strong competencies in marketing and store sites selections
Size over 6500 stores around the world
Diversification- financial services, non-food items, Telecoms, banks
Brand image and product offerings

Growth through Acquisitions and partly through joint ventures

Tesco has grown through acquisitions
1994 Tesco acquired 51% of Hungary owned grocery chain by 2004 it had 60 stores and 14%market share
1996 Tesco acquired Kmart in Czech Republic and Slovakia

1998 Tesco enters Asia by purchasing 75%of Lotus local food