Tesco SWOT Analysis and Business Strategy

This assignment presents a comprehensive SWOT analysis of Tesco, a multinational retail organization. It examines Tesco's strengths, including its diverse product range, strong brand reputation, and effective marketing strategies. The analysis also identifies weaknesses, such as high prices compared to competitors and a history of financial misconduct. Opportunities for growth are explored, including online expansion and venturing into new markets. Finally, the report addresses threats, such as changing consumer preferences, competitor pressure, and rising operational costs.

English Essay

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
SWOT ANALYSIS OF TESCO......................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Tesco is a multinational organisation which is established in the United Kingdom. They
are operating their business in many nations and having high goodwill in the market (Scheibe
and et. al., 2017). Profit of firm is increasing continuously which help them to improve their
market share. In the present report, manager of company will conduct SWOT analysis to know
the strengths and weaknesses of business. Also, various opportunities will be identified from
market to attain set targets within limited time frame.
SWOT ANALYSIS OF TESCO
The SWOT analysis of Tesco is given as below: Strengths: Tesco is dealing in variety of products which help them to diversify their risk
in the market. According to Steffen, (2017) goodwill of organisation is much effective
which helps them in maintaining their customer base. As a result, they will easily
enhance their revenues. They improve the effectiveness of their products and services on
regular basis and in addition, develop new and unique goods that will pull users towards
them. As a result, they can beat their rivals in the competitive world. At present, they are
having 28% share of the market. They are using adequate marketing strategy which helps
them to lead among all other firms available in the market like Sainsbury, ASDA, etc. Weaknesses: In April’ 2017, there was a peak period in the UK which reduced market
share price of Tesco. Investigation has been done over there and it was found that they
are not reporting their revenues correctly in their balance sheets. Due to this reason, fines
were charged to them. Prices of their products in Tesco were found to be high as
compared to its competitors (Norwood and et. al., 2017). Managers of company are not
using new tools as well as techniques which can lead to reduction in their profits. Along
with this, they need to decrease the prices of their items and services to keep up the client
base. Opportunities: There are too many chances for organisation to grow in market, if they
grab them, then they can easily increase their market share. Tesco can do their business
online to pull numerous people towards them. Along with this, they can expand their firm
to many other nations as this will assist them to enhance their customer base. Company
will make some new policies or strategies to acquire maximum market share. By
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conducting research, they will know the requirements of buyers and fulfil them within
limited period of time (Khaba and et. al., 2017).
 Threats: Preferences of users regarding products can alter according to trends which can
lead to decrease the level of sales for organisation. Therefore, it is fundamental for
company to know the needs of purchasers. According to Niu, Song and Xiao, (2017)
demand of people will change as per the alteration in environment and thus, they have
threat over international market. There are some competitors of Tesco such as Aldi who
are using effective strategies in their business which can reduce their customer base. Cost
of raw material is high which is increasing the prices of their products and services
(SWOT analysis of Tesco Corporation, 2016).
Illustration 1: SWOT analysis
(Source: SWOT analysis, 2017)
CONCLUSION
As per this report, it has been concluded that it is required for an organisation to conduct
SWOT investigation to know the strengths and weaknesses. This will aid them to take
opportunities in the marketplace. Along with this, they can easily compete with their competitors
in the competitive world and increase firm’s revenue.
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REFERENCES
Books and Journals:
Khaba, S. and et.al., 2017. Quantifying SWOT analysis for the Indian coal mining industry using
Fuzzy DEMATEL. Benchmarking: An International Journal. 24(4). pp.882-902.
Niu, D. X., Song, Z. Y. and Xiao, X. L., 2017. Electric power substitution for coal in China:
Status quo and SWOT analysis. Renewable and Sustainable Energy Reviews. 70. pp. 610-
622.
Norwood, C. W. and et.al., 2017. Administrative challenges to the integration of oral health with
primary care: a SWOT analysis of health care executives at federally qualified health
centers. The Journal of ambulatory care management. 40(3). pp.204-213.
Scheibe, A. and et.al., 2017. A SWOT analysis of health service access by men who have sex
with men in South Africa: lessons for higher education institutions. South African
Journal of Higher Education. 31(4). pp.219-233.
Steffen, B., 2017. The physics of software tools: SWOT analysis and vision. International
Journal on Software Tools for Technology Transfer. 19(1). pp.1-7.
Online
SWOT analysis of Tesco Corporation. 2016. [Online]. Available through:
<https://www.marketing91.com/swot-analysis-of-tesco-corporation/>.
SWOT analysis. 2017. [Online]. Available through: <https://businessteacher.org.uk/swot/swot-
analysis.php>
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