Competitive strategy of Tesco

Verified

Added on  2023/06/12

|7
|1564
|264
AI Summary
This report discusses the competitive strategy of Tesco through SWOT, PESTEL and Porter's Five Model. It helps to identify the internal and external environment of Tesco and its competitive advantages. The report also discusses the importance of strategic tools in making a company strong.

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.
Document Page
Running head: COMPETITIVE STRATEGY
Competitive strategy of Tesco
Name of the Student
Name of the University
Author Note

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
1COMPETITIVE STRATEGY
Table of Contents
Introduction:....................................................................................................................................2
Discussion:.......................................................................................................................................2
SWOT analysis:...........................................................................................................................2
PESTEL analysis:........................................................................................................................3
Porter’s five model:.....................................................................................................................4
Conclusion:......................................................................................................................................5
Reference:........................................................................................................................................6
Document Page
2COMPETITIVE STRATEGY
Introduction:
In case of operating a business, certain strategies are required. These strategies help to
gain competitive benefits for the company. The success of a business is very much depended on
these strategies a lot. The potentiality and threats regarding the company can be understood by
these strategies. It informs about both the internal and external environment. Many strategies are
taken by the companies to secure their future. However, in this report, SWOT, Porter’s 5 model
and PESTEL of Tesco has been discussed (Tesco.com. 2018). In this report, the competitive
advantages of the company can be understood.
Discussion:
SWOT analysis:
One of the most interesting essential of competitive strategy is that it helps to identify the
strength, weakness, opportunities and threat for the company (TESCO). All these things are
important to make profit for the company. If the strength of the company can be identified,
capitalizing the resources can be possible for the company and the company earns profit from the
same (Bohari, Hin and Fuad 2017). Concurrently, it is important to identify the weakness of the
company so that the company can avoid all the weak points and can establish the base of the
company on firm stand. TESCO is an international grocery store and if the weak points of the
company can be making over, the company will gain much profit from their business. The
position of the company will also get secure. Proper identification of the opportunities is very
essential for any company so that overall performance of the company can be shunned.
Production line and soft corners of the market can be identified in a proper manner and the
Document Page
3COMPETITIVE STRATEGY
company can be benefitted from the same. In case of international companies like TESCO,
identification of threats is quite important (Brooks, Heffner and Henderson 2014). The
production capacity of the grocery goods can be increased and profit can be gained for
uniqueness of the company. An overall study on the SWOT analysis will help to identify all the
strong points of a company and the profounder of the company could make all the profit oriented
plans for the best interest of the company. The internal environment of a business could be
attracted by the SWOT analysis.
PESTEL analysis:
Environment plays an important role in the case of development of business. it is a well-
known principle of the business strategy that development of a business is depended on the
Political, Economic, Social, Technological, Legal and Environmental factors of a country.
Therefore, a critical analysis regarding the same is required. The overall performance of the
company is evolved with these factors. This is important for the overall growth of an
international company (Kolios, Read and Ioannou 2016). When a company wants to relocate its
business or opens outlets in another country, political analysis of the country helps the company
to understand the policies and procedures of the country. no business can be developed until
there is a demand regarding the product and until the economic condition of the country is good.
Therefore, economical analysis will help to understand the profit scenario of the country. The
main business of Tesco is to supply grocery products to the customers and therefore, the
company is required to understand the social criteria of every country so that the products can be
sold accordingly. The modern world is based on technical innovations and therefore, it is
important to use technical assistance for the development of the business. The production of the
market can be well understood by the technological analysis made by the company. Legal

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
4COMPETITIVE STRATEGY
analysis is one of the inevitable criteria for an international company like Tesco. Legal assistance
can be required for operating business on universal basis. Further, legal analysis will provide
sufficient advice to the company so that they can operate their business ethically. It is no doubt to
state that every company has certain duties to the environment. Therefore, environment analysis
is important in this case. the company should not harm the environment at any cost.
Porter’s five model:
The competitive position of a company can better be understood by porter’s model and
therefore, a critical analysis regarding the same is necessary to this effect. The five models are
bargaining power of the suppliers, threat of substitutes, bargaining power of the buyers, threat of
new entrants and industry rivalry (Sun et al. 2014). All these models will help to identify the real
position of the company in case of the business criteria. Further, these models will help the
company to identify the rivalries of the company so that the company can chalk out proper plan
for the company. Further, the marketing position of the supplier will help the company to
identify the demand of their product. The product costing is depending on the quality and
quantity of the substitutes. It has further been stated that Tesco is required to set the price of the
product based on the power of the buyers. Product purchasing power of the buyer will help to
gain overall profit for the company (E. Dobbs 2014).
The product selling capacity of Tesco will be incremented if the company can identify the
competitors of the company. According to the product marketing analysis, it can be stated that
ASDA, Sainsbury’s and Morrison are certain competitors of the company. This will help to make
proper plan for the company. The productivity of those companies can hamper the selling
capacities of the company. In this case, it can be stated that the company is required to make
certain unique product so that the competition among those companies could not harm the
Document Page
5COMPETITIVE STRATEGY
profitability of the company. Further, price of the products is an effective system for increasing
the selling capacities of a product. However, the quality of the products should not be cheap or it
will affect the reputation of the company. Tesco should take certain methods so that the threats
of the company can be identified and the company can gain profit and reputation in the global
market.
Conclusion:
Therefore, the importance of all the strategic tools has been observed and it can be stated
that these models help to identify the fuelling model of a business. All these models help to make
a company strong, both from the internal and external side. The external side of a business is
supervised by the porter’s five model and PESTEL analysis and the internal portion of the
business is dealt by SWOT analysis. Therefore it can be stated that the growth of the business is
depending on all these strategies.
Document Page
6COMPETITIVE STRATEGY
Reference:
Bohari, A.M., Hin, C.W. and Fuad, N., 2017. The competitiveness of halal food industry in
Malaysia: A SWOT-ICT analysis. Geografia-Malaysian Journal of Society and Space, 9(1).
Brooks, G., Heffner, A. and Henderson, D., 2014. A SWOT analysis of competitive knowledge
from social media for a small start-up business. The Review of Business Information Systems
(Online), 18(1), p.23.
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), pp.32-45.
Kolios, A., Read, G. and Ioannou, A., 2016. Application of multi-criteria decision-making to risk
prioritisation in tidal energy developments. International Journal of Sustainable Energy, 35(1),
pp.59-74.
Makos, J., 2015. What is pest analysis and why it's useful. PESTLE Analysis.
Sun, Y., Guo, P., Ma, Z., Li, T. and Dang, S., 2014, November. UK-based external business
environment analysis of outdoor adventure clothing using the PESTEL tool and its future
outlook. In Information Technology Systems and Innovation (ICITSI), 2014 International
Conference on (pp. 306-309).
Tesco.com. (2018). Tesco - Online Groceries, Homeware, Electricals & Clothing. [online]
Available at: https://www.tesco.com/ [Accessed 19 Apr. 2018].
1 out of 7
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]