SWOT Analysis of Tesco: Identifying Strengths, Weaknesses, Opportunities and Threats

This report provides a SWOT analysis of Tesco, a British multinational merchandise retailer. It covers the strengths, weaknesses, opportunities and threats of the company. The report highlights the company's brand image, financial performance, strategic partnerships, growth opportunities and potential threats from competitors and uncertainties such as pandemic. The report concludes with the importance of identifying potential internal strengths and weaknesses of the company for its development and growth.

Portfolio Paper 2

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
SWOT analysis of Tesco........................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Tesco is a British multinational merchandise retailer founded in 1919 and headquartered in
Welwyn Garden City, United Kingdom. The report will cover a description of the organisation’s
strengths, weaknesses, opportunities and threats with the help of SWOT analysis.
MAIN BODY
It involves strategic management planning and technique which is used for helping a
organization to identify its strengths, weakness, opportunities and threats which are majorly
related to project planning and business competition. In context to company, Tesco aims to
examine its strengths and weakness through swot analysis and to explore more opportunities for
the company in order to pay attention to the threat that might affect its future operations (Hanafi,
and Kamari, 2018).
SWOT analysis of Tesco
SWOT analysis is an effective tool that it is used by organisations to identify their
strengths and weaknesses along with upcoming opportunities as well as threats( Tuten, 2019).
Strength: The company’s main strength is its brand image. The organization has won various
awards for its excellent customers service, retail and overall shopping experience and is
considered to be one of the profitable retail formats in the world. The company receives high
amount of research and development funds from government which it invests carefully that
makes Tesco among the leaders in its industry. The company holds strong financial performance
across grocery sector and is most favored by the governments where it operates.
1

Weakness : The company has suffered from a huge financial debt in the past as could not be able
to cope up its debt as compare to its competitors and due to suffering from such financial loss
the company has removed a series of products from its supermarkets. The company has been
through certain controversies that relates its bad image among the people (Hagan, 2019).
Opportunity : The company has developed strategic partnerships with few of the reputed
companies which acts as an excellent opportunity or the company. The company has witnessed
vast growth opportunities in emerging market that can be the future drivers for growth. The
growth of aging population across the world has led to a significant opportunity for company to
grow.
Threat : The company’s competitors are its main threats. The pricing policy of its competitors
creates a negative impact on its business operations. The company has threats that it may be
acquired or amalgamated into the wealthier and bigger companies that are looking for it for a
long time. Uncertainties such as Pandemic may rise and could lead to the potential damages to
the company and its operations (Parniangtong, 2017).
CONCLUSION
In the above report there had been an analysis of an organisation with the help of SWOT to
identify its strengths, weaknesses, opportunities and threats. The identification of potential
internal strengths and weaknesses of the company would give opportunities for its development
and growth. The report had also been explaining its threats that should be foreseen by a company
to tackle upcoming challenges.
2

REFERENCES
Books and Journals
Hagan, P., 2019. Higher Business Management. Hachette UK.
Hanafi, M. H. and Kamari, I., 2018. ENT600: Kulai IOI Mall Giant Hypermarket.
Parniangtong, S., 2017. Formulating Customer-Driven Strategy. In Competitive Advantage of
Customer Centricity (pp. 113-159). Springer, Singapore.
Tuten, T. L., 2019. Principles of Marketing for a Digital Age. SAGE.
3

4