Internal Resources, External Environment and Innovation Strategy of Tesco Plc

Strategy, Enterprise and
Innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
Analysis of internal resources and capabilities...........................................................................1
Key drivers of change in the external environment....................................................................3
PORTER'S FIVE FORCE FRAMEWORK................................................................................5
CONCLUSION................................................................................................................................6
References:.......................................................................................................................................7

INTRODUCTION
Business enterprise is platform to conduct the commercial activities in order to earn
profits in exchange of product and services. In a business enterprise there are multiple
operations and in order to conduct the effective and efficient operational activities company must
develop the strategies and strategic plans. Innovation is one of the most important strategy that
every organisation adopt because this lets and business enterprise to gain competitive advantage
in the market it operates in (Velikorossov and et. al., 2020). Enterprise must plan and manage its
innovation strategy very precisely to have successful innovation that can help the company in
gaining success and competitive edge. The present report is in context of Tesco Plc the global
grocery and general merchandise retailer and supermarket headquartered in Welwyn Garden
City, England. The report will aim to discuss internal resources and capabilities that provide
Tesco competitive edge. Further the key drivers of change in external environment and porter;s
five force analysis is conducted in report.
Main Body
Analysis of internal resources and capabilities
SWOT ANALYSIS OF TESCO PLC
SWOT analysis is the strategic management tool that helps an organisation like Tesco Plc to
identify its internal strengths and weaknesses and the opportunities and threats associated to the
enterprise.
Strengths Weaknesses
 Innovation: Innovation is the biggest
strength that Tesco holds currently as
the company has strategic goals to
drive innovation within company in
order to stay largest competitor and
also to maintain its market share in UK
market (Ketchen Jr and Craighead,
2020).
 Market share: this factors of the
Low pricing strategy: this is the major
weakness of the tesco plc as the company due
to this is not able to ear high amount of profit
margin due to which company may face the
financial instability and loss in some of its best
products that has capability of earning good
profits.
High dependency on UK market: the Tesco
plc relies highly on the UK market for its sales
1