Competitive Strategy: SWOT, PESTLE Analysis, and Five Forces of TESCO

Competitive Strategy
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
SWOT Analysis...........................................................................................................................3
Pestle analysis of TESCO............................................................................................................4
Five forces.......................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Tesco, is a British multinational groceries and general merchandise retailer with
headquarters in Welwyn Garden City, Hertfordshire, England, United Kingdom. Company has
over 6800 stores in 14 countries and apart from Europe they are also reputed in Asian countries.
This report covers issues such as Swot analysis, Pestle Analysis and porter's five force analysis
of the company.
MAIN BODY
SWOT Analysis
Strength-
Tesco has earned the position of becoming the no. one retailer and supermarket chain in
UK. Revenue and sales of the company is higher as compared to the competitors of the company.
The operating profit of the company has increased from a margin of 28 per cent (David and
David, 2019). Company has 27 per cent share in the market which gives them the power to
dominate others. Apart from UK they have also gained popularity in the market of Ireland.
Company has different forms of stores for different type of people such as Tesco Extra, Tesco
Metro, Tesco Express and Tesco Superstores. Tesco has employed around 7,43,000 people in the
market which has helped them to gain largest opportunity maker in whole Europe.
Weakness-
Company had to close their operations from the markets of Japan and America as the
company was not able to maintain the export of the company. Apart from that they also faced
some issues which affected their image and for which they had to pay some fines as they were
accused of not maintaining their accounts and misrepresenting their profits. The prices of shares
of company reduced from 9 per cent because of the reduction in the operating profits of the
company. After Brexit their performance has been worst in the market. Company has huge
amount of debts and credit pending in the market. The cost strategy which is used by the
company is the reason behind the reduction in their level of profits.
Opportunities-
Company has the opportunity to made their presence in the online sector and start
offering the services of home delivery (Hu, Qiu and Liang, 2018). Tesco has many stores in
developing countries but if they expand their operations into emerging countries such as Turkey,
Indonesia it can be profitable for the company. In some markets the performance of the company
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