Nature of difficulties

In a statement by the Tesco’s former chief executive, Tesco betrayed the trust of millions of its customers. During this time, Tesco lost reputation for having low prices and the public thought that the Company experienced failure under the leadership of Philip Clarke (Ruddick, 2014). Pushing out too many executives was the main reason why the business suffered culture change which did not lead to any situation that was better. Stock performance of Tesco is also hit by the recent turn of events that saw them lose millions of customers to Aldi and Lidl (Davidson, 2015).

Causes of difficulties

A major cause to this situation can be linked to the surprising reason of Tesco of failed leadership and ineffective cultural change. Thus the cause of their failure could be said to be inherent. Fallout of its biggest suppliers such as L’Oreal was also a major cause in failure of Tesco (Ahmed, 2016). Additionally, errors in customer service and brand values also brought down the company in tremendous ways. A similar significant cause of Tesco’s failure was linked to lose of Tesco’s market position to Aldi (Butler 2015)

Conclusion

Aaker’s brand equity model was the application made on Tesco. Aaker was the biggest retailer in U.K and was popularly known for its best prices and high quality products and service. Tesco’s loss of market share to Aaker brand reduced its shared drastically. Tesco’s brand value and position also fell from better to worse levels due to rising market competition.