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Swot Of Tesco Essay

839 words - 4 pages

SWOT Analysis

Tesco is the UK’s leading store and therefore to remain on top position there is many aspects which Tesco has to face in its daily life. To observe strength, weakness, opportunities and threats, it is important to perform SWOT analysis which will give a brief idea on the performance of Tesco.

Tesco has a very powerful brand, over the past years from 2001 to 2005, Tesco stores increased from 692 to 1780 stores which include the new format of stores like Tesco Express and Tesco Metro competing in different sectors. Their strategy of buying in bulk so that they can easily compete in lower prices with its main competitors like ASDA and Sainsbury. They have not ...view middle of the document...

Tesco should also look forward to build local stores to provide goods to their customers at cheap prices.

Tesco main threats are its competitors like ASDA which is taken over by the giant retailer Wal-Mart or the Morrison is purchasing the Safeway. There are also financial threats to Tesco like fluctuation in the stock and interest rates. There is also introduction of taxes on food and beverages.

PESTLE Analysis

The political impact on Tesco is not only influenced by locally but also national and international. There are many factors that can affect the performance of Tesco such as government ban of sale of alcohol over to people over the age of 21. Tesco also need to make sure that it does not breaches employment legislation, as government encourages retailers to provide opportunities from low skilled to highly skilled and also meet the demand of disabled people.

The government decides put the tax on food
Economical change locally or internationally, can affect the performance of Tesco. Like, the government had decided to put tax on food which can affect the demands and supply of products.

UK is a multicultural society and therefore Tesco tackle this challenge very efficiently. Day by day people attitude towards shopping is changing. They are more concerned about health issues; to tackle this one of the example Tesco has introduced organic food. They try to understand customers better than anyone and using their values they try to deliver better value products...

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