Industry Trend Analysis

INDUSTRY TREND
ANALYSIS 2000WORDS
CLIENT REPORT 500
WORDS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PART ONE......................................................................................................................................3
TASK 1............................................................................................................................................3
Identification of issues.................................................................................................................3
External Environment Analysis...................................................................................................3
TASK 2............................................................................................................................................5
Internal Environment Analysis....................................................................................................5
TASK 3............................................................................................................................................6
Manging Change within Tesco....................................................................................................6
Cultural Management for Tesco..................................................................................................7
Operational Management for Tesco............................................................................................7
Stakeholder Analysis of Tesco....................................................................................................8
Conclusion...................................................................................................................................8
PART TWO.....................................................................................................................................9
Benefits of Strategic planning.....................................................................................................9
PDCA Cycle................................................................................................................................9
Recommendation.......................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Managing the business in the present situation after the covid-19 is became quite difficult as
there is variety of uncertainty affects the business to the large extent. This report is based on the
Tesco Plc. one of the companies operates in retail sector and located in UK. The company have
operation in more than 13 countries with the employees of around 240000. Retail sector is the
most profitable and growing sector in the UK because this sector deals with the products of
groceries and daily use items. The average expected annual growth rate of retail industry in UK
has seen downfall with 8.2% in the year 2020 because of corona virus. In the year 2021, the sales
of retail industry are still facing the down by 3.7% as compared to the previous years. But the
scope of the sector is manageable because of some company such as Tesco that manages it sales
even at this situation via use of online channels. The report will discuss the industry trend
analysis and the competitive advantage of the Tesco which help them in maintaining the first
position in UK. The report will further recommend the strategy the company can adopt in order
to further expand and grow the business.
MAIN BODY
PART ONE
TASK 1
Identification of issues
Competition in the retail sector of the UK is quite high which causes loss of customers to the
Tesco company and the impact of which their business sales is get decreases day by day. During
the pandemic the retail industry across the UK faces lot of downfalls and the consumers are no
longer able to buy products from the stores and supermarkets. The lock-down affects the retail
industry to the great extent and can also provide opportunity post-pandemic (Medland, 2021).
External Environment Analysis
This helps the Retail sector in analysing the external environmental changes and their
impact over the industry and Tesco business.
Business Cycle Model

 Introduction stage: This is the stage where the company need to decide whether they
need to introduce a new product or continue with the existing one. As the Tesco do not
focus more on the other strategy but their all-product decision depends upon the
customers taste and preferences. Here, the cost of the development is high which lead to
low profit. So, the company need to introduce new products such as high immunity
drinks in order to manage their customer base even in the pandemic situation.
 Growth Phase: In this stage, the industry is able to earn profit when the business new
product and services attract customers taste and preferences. At this stage, the
competitors of the Tesco might try to copy their strategy and new products which leads to
the retail sector expansion but causes profit decrement and lose of customer loyalty for
Tesco (Shrives and Brennan, 2017).
 Maturity Phase: In order to attain this phase, the company need to manage itself at the
growth stage because of high competitors. This stage will help the industry in
maintaining the beliefs of the customers over the new products.
 Decline: If the industry is unable to adapt themselves as per the environmental changes,
then it will come in the decline stage. That’s why to keep the customers satisfy the Tesco
company need to launch various new and fresh products as per the customers taste and
external environment.
Blue Ocean Strategy
In order to create blue ocean strategy, the Tesco company can adopt a way which include
launch of new product and services and develop the business to new and foreign market space.
 Raise: For this, the company first need to analyse the industry trends with their line of
products and raise the key aspects of the differentiation strategy. Here, the company need
to raise the pros and cons of its existing products to the customers.
 Reduce: This section of the blue ocean strategy states that the retail industry needs to
reduce the supply of that product and services which are not essential for the nature as
well as for the customers. In order to create blue ocean, the industry and Tesco company
need to work as per the customers taste and preferences (Bartosik-Purgat and Ratajczak-
Mrożek, 2018).