Can Tesco crack UK market

While they recently reported profits approaching £2 billion a year it seems that enough is never enough for Tesco, who are looking to expand into a whole range of new and exciting areas of consumer life. Since acquiring the rights to use the eDiets name in the UK and Ireland in 2004, Tesco have been making a massive splash in the UK online diet market and it seems that they are on target to dominate this market, but will it last?

Tesco seem intent on a program of world domination and the fact that they decided to use the eDiets brand seems to have been a very sensible move. As the Tesco name is already heavily associated with a range of foods, both dietary and no dietary, it seemed sensible to use a different source to bring in customers for their online diet business. eDiets have turned out to be the perfect foil for Tesco, offering the chance to "piggy back" a successful format which has attracted literally hundreds of thousands of paying customers and millions of newsletter subscribers. Tesco have taken full advantage of this and very quickly they have become the leading online diet company in the UK, leveraging their brand name to the maximum, with plenty more scope for further growth. So what next for the Tesco online diet business?

There are some very interesting options for it in the future as they look to crack an array of traditional food markets throughout the world. They already have exposure in the Far East and America, not to mention their home base of the UK, but there are plans to rollout a great deal more ventures in the overseas market. Many are suggesting that a full acquisition of the eDiets business would make a perfect fit and allow a two pronged attack on the US market - via traditional supermarket outlets and a heavy promotion of the online diet business (only UK subscribers are currently accepted by the Tesco diet business). eDiets is "only" valued around the £70 million mark, although when you consider that it last reported full year profits of approaching £2 billion, £70 million is but a drop in the ocean.

So will Tesco attempt to attack the worldwide online diet market via eDiets? Will they bring in their own food range to compliment what is already a massive UK diet business? Or will they sit back and do nothing?

Tesco's, sit back and do nothing? Who are you kidding? It will be full steam ahead and do not rule out a full takeover of the eDiets business, to further enhance what Tesco's already have.

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