Comparative Analysis of Tesco PLC and Primarks Capacity Management Essay

Comparative Analysis of Tesco PLC and Primarks Capacity Management - Essay Example n demand, retail service providing companies are faced with a challenge of managing, expanding and planning their capacity to meet increased demand for retail products. In this pursuit of retail capacity management, two main options have been considered by the retailers across the UK. The first option is the expansion of retail floor space by opening up new retail outlets and the second option has been to go online and make use of the omnipresent advantage. Tesco PLC and Primark, both of which are retailing companies, have catered this increase in demand and the challenge of capacity management by focusing on these options. However, it is pertinent to note here that both companies have different challenges to face; Tesco PLC has a large and mature customer segment which needs to be catered, managed and facilitated through conventional and unconventional means. On the other hand, with a comparatively small customer segment, Primark’s aim to build capacity is aimed at increasing customer base, rather than managing or facilitating it. Having taken into consideration the increase in retail customers’ demand, Tesco has considered a paradigm shift in its capacity planning and management. As per the interim report published by the company in company for the year 2012 – 13, the management is focusing more on online retailing rather than increasing physical retail outlets. The possible outcome of this strategy to increase capacity can be the catering of increased demand of the customers and to have a wider reach by nullifying the impact of constraints associated with physical outlets (Tesco PLC, 2012). Having considered the fact that the customers of the company increased significantly, Tesco PLC required a solution for increasing its capacity to manage growing customer... This esay sresses that Tesco PLC has a large and mature customer segment which needs to be catered, managed and facilitated through conventional and unconventional means. On the other hand, with a comparatively small customer segment, Primark’s aim to build capacity is aimed at increasing customer base, rather than managing or facilitating it. Having considered the fact that the customers of the company increased significantly, Tesco PLC required a solution for increasing its capacity to manage growing customer base. Having taken into consideration the increase in retail customers’ demand, Tesco has considered a paradigm shift in its capacity planning and management. This paper makes a conclusion that keeping in view the comparative analysis of Tesco PLC and Primark in this report with regard to their capacity management and initiatives taken in this respect by both of them, it is evident that there is a marked difference between the strategies of both companies. Tesco PLC, having a strong physical presence and large retail floor space in the UK, has been focusing on going online to target a greater customer base. In fact, the management at Tesco PLC is considering reducing its retail space, which will ultimately benefit the company in reducing its operating costs. On the other hand, Primark has persisted with its strategy of increasing retail floor space in the UK and has also planned to carry it forward in the future too.