SWOT Analysis of TESCO: Strengths, Weaknesses, Opportunities, and Threats

This document provides a detailed SWOT analysis of TESCO, one of the largest grocery stores in the UK. It examines the strengths, weaknesses, opportunities, and threats of the brand and offers recommendations for future strategies. The analysis covers TESCO's market dominance, efficient network of stores, job opportunities, international expansion, weaknesses in expanding into certain markets, opportunities for growth and alliances, threats from competitors and the pandemic, and more. Additionally, the document includes a TOWS analysis and an operational analysis of TESCO's operations department.

BM461 Global
Business Environment

Executive summary:
SWOT analysis is a effective technique that can be used for analysing the strengths,
weakness, opportunities and threats of a business. The main objective is that it leads to
development of awareness of all factors that are part of decision making process. It leads to
further discovering the future strategies and recommendation in order to leverage the
opportunities and strategies to overcome the threats and weakness of the business.

Table of Contents
INTRODUCTION...........................................................................................................................4
PORTFOLIO 2- SWOT ANALYSIS ............................................................................................4
TOWS analysis:...............................................................................................................................6
Portfolio 3: ......................................................................................................................................7
Operational analysis:..............................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
SWOT analysis is a framework that is used for the purports of making a detailed
evaluation of the on internals strength, weakness, opportunities and threats that are associated
with a particular organisation (Sarsby, 2016). Presently there is analysis of TESCO that is a
brand belongs to retail industry and is affected by the changing environment based on that there
is further formation of TOWS strategies.
PORTFOLIO 2- SWOT ANALYSIS
Strength:
 TESCO is one of the biggest grocery stores across Britain they have acquired births
market. Its annual revenue is of 63,911 million pounds combined in UK and Ireland.
 Efficient network of superscript is leading TESCO to have higher cost effective and a
effective waste management system.
 TESCO is dominating UK market by holding a maximum share of 27 percent.
(Source: TESCO SWOT Analysis, 2020)

 TESCO is a largest private employer in Europe as they are creating more job opportunity
and have employed 500,000 people across world. And are offering 743 K job
opportunities.
 TESCO has diversified in 14 countries across ASIA and Europe with a total number of
retail stores that is 6800 worldwide.
Weakness:
 TESCO has failed to expand their business in countries such as US and Japan
 In 2018 TESCO has changed their club-card without informing their customers
(Phadermrod, Crowder and Wills, 2019).
 In 2017 there was a scandal in which TESCO reflect less profit in their accounting
ledgers to avoid taxes that lead to a negative image on their established brand image.
 TESCO probability has been affected by BREXIT referendum that is affecting the
markets share process of this brand that has fallen to approximate 9 percent.
 Weak operating performance has been a situation as there has been not sufficient research
conduced before opening up of stores by the marketing department of TESCO.
Opportunities:
 TESCO can focus on expansion of their Jack store as they can invest more with a higher
potential to grow and further compete with other low cost brands such as Lidl and Aldi.
 TESCO can expand their operations in other 14 countries in emerging markets of Turkey,
south Korea and Indonesia.
 There is a opportunity to form alliance with other brands with better product and services
to facilitate their customers.
 With outbreak of COVID virus people now prefer online purchasing of products so there
can be development of online mobile application with timely up-gradation of this app.
 In some countries TESCO stores are not performing well so there is a opportunity to form
merger with other local stores.
Threats:
 TESCO is dealing with the pandemic crisis that has affected them with reduction in sales
as people preferences have developed towards just necessity products only.
 In 2017 TESCP markets advertised products with name “wood-side farms” and there
have been no farms in their asset lists that lead to a blame for misleading their customers.

 TESCO is suffering huge threat from Continuous changing strategies of competitors of
Creefour, Aldi and Morrison’s (Kumar, Dabas and Hooda, 2018).
TOWS analysis:
Strengths weakness
 Efficient supplier network
 Highest market share
 TESCO has less
operational profits
as their market
share price has
fallen
 TESCO is operating
on a low cost
strategy that is
affecting their
profitability ratio.
Opportunities S-O W-O
 TESCO can expand
their discount stores
 There can be
development of a new
businesses model for
mobile friendly
application
 TESCO can use their
suppliers network for the
purpose of expanding
their discounted stores in
new locations.
 TESCO can
enhance the present
operational
profitability ratio by
using the
opportunity to
develop a new
mobile application
Threats S-T W-T
 TECSO is affected by
the situation of High
competition
 TESCO is affected by
the Brexit deal and this
 TESCO can achieve
higher market share by
dealing with the situation
of high competition.
 TECSO can
maximize the
benefits from their
low cost strategy
business model and

will affect their future
business operations.
deal with the
situation of high
competition.
Portfolio 3:
Operational analysis:
Function and importance of Operations:
Operations management act as a umbrella of different functions of a business acting as
a control mechanism. In TESCO it is defined as the process that transforms the resources and
input of a organisation in final goods with a defined set of policies (Sharma, and Sehrawat, ,
2020). The production department is managing all the functions such as location of facilities,
plant layout, material handling, maintenance management, production planning & control,
quality control are some of the functions that are performed by the production and operations
department.
Strength to take advantage of opportunities/strategies identified:
TESCO can make use of the established network if superscript for the purpose Efficient
network of superscript is leading TESCO to have higher cost effective and a effective waste
management system.
Strengths in operations to reduce negative impact of threats in environment:
One of the major strengths of TESCO is the presence of global operations that includes
online shopping and joint ventures in countries such as china & local recruitment in the senior
management positions that is assisting them in dealing with the intercultural differences. TESCO
has shown the spirit of early development in new international borders without presence of any
rival brands and focussing on achievement of a price leadership position.
Weakness of your Operations:
One of the biggest weaknesses for operations in TESCO is that their subsidiaries are not
operation well and they are more vulnerable to the changing external environment. Overall
profits of TESCO are having adverse impact because of the recent credit crises that has taken
place because of recent COVID virus impact.
Firm reduce its weaknesses in operations to reduce negative impact of Threats:

The major threat for TESCO is that they are suffering from the fast changing strategies of
their competitors. So there is need to reduce this weakness by using their strengths.
CONCLUSION
From the above mentioned aspects it can be Said that SWOT analysis is a framework
that can assist in making a detailed analysis of the internal environment of a business based on
which further TOWS analysis is conducted. Operational department is a area around which every
function of a organisation is revolving and is leading to ultimate achievement of laid business
vision, mission and objectives.

REFERENCES
Books and Journals
Kumar, A., Dabas, V. and Hooda, P., 2018. Text classification algorithms for mining
unstructured data: a SWOT analysis. International Journal of Information Technology,
pp.1-11.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management, 44, pp.194-203.
Sarsby, A., 2016. SWOT analysis. Lulu. Com.
Sharma, M. and Sehrawat, R., 2020. Quantifying SWOT analysis for cloud adoption using
FAHP-DEMATEL approach: evidence from the manufacturing sector. Journal of
Enterprise Information Management.
Online:
TESCO SWOT Analysis, 2020 [online], Available
through<https://www.marketingtutor.net/tesco-swot-analysis/>