Tesco SWOT Analysis

This presentation provides a detailed SWOT analysis of Tesco, the largest retail chain in the UK. It covers the company's profile, leadership style, strengths, weaknesses, opportunities, threats, and recommendations for future growth. The analysis also includes references to relevant research articles.

TESCO SWOT ANALYSIS
Company Profile
Tesco is the biggest public retailer chain in UK that was founded in 1919
and the headquarters of the company are based in Hertfordshire, UK.
The leadership style that is adopted by the CEO, David Lewis is
Participative where the decisions are taken after consulting with all the
managers of the company and employees as well in certain contexts.
Tesco follows hierarchal structure so that every function can develop
clarity on the duties to be performed and progress of their particular
department.
Strengths
Tesco can be credibly categorised as one of the largest retails stores in
UK with the highest number of sales and market share as compared to all
other retail chains.
Additionally, the presence of the brand on a global level and its
continuous growth further contributes as strength of the company.
Also, the advanced technology that the company is using such as RFID
enabled barcode system etc. has simplified the shopping process for their
customers.
The supply chain f the company is also very well developed and
connected and due to such advanced commercial performance, the
company has received various awards.
Weaknesses
Due to the low cost strategy that company has adopted and
increased credit card liability, the profit margins over the year have
declined for Tesco.
They have also been involved in various controversies and frauds
which have affected their goodwill.
All of this is leading to regularly declining operation profits of the
company in recent years especially post Brexit.
Threats
 There have been various controversies in which the company
has been involved such as the Christmas ad Controversy, the
fake Woodside Farms band name etc.
 This has severely affected the reputation of the company. Also,
after the Brexit, Britain has separated form EU and therefore
the trade and cost can increase for the company.
 The economy is increasingly becoming upheavaled and the
increasing government regulations are also posing a sincere
threat to the company.
 All of this has increased the threat of competition that company
is facing from other supermarket giants such as Wal-Mart, Aldi
etc. thus affecting the company’s performance.
Opportunities
Developing strategic alliances currently is the key opportunity available
with the company where they can enter into partnerships with some of the
top performers so that reputation can be regained.
Additionally, the online markets are the greatest emerging platforms for
the company where they can easily expand themselves.
They can also expand themselves in the emerging economies such as
South Korea, Indonesia etc. where the market has not yet been captured.
Recommendations
Company can delve deeper in to the online platform as well as the emerging markets so that
they can expand their operations and revenue generation.
The legal and financial matters can also be resolved by taking corrective steps and actions.
 Company should increase the role of customer feedbacks in their decision making so that the
customer feels that the company is there to serve them.
Overall, CSR activities of the company need to be boosted and developed so that company
can place themselves on the better side of the perception of the society.
References
Tirawatnapong, R. and Fernando, M., 2019.
Factors Influencing Bangkok People Purchase
Intention towards Tesco Lotus House Brand
Products. International Research E-Journal on
Business and Economics. 4(2). pp.15-29.
Fatricia, R.S., 2017. STRATEGIC
ANALYSIS OF TESCO
SUPERMARKET. Jurnal Manajemen Terapan
dan Keuangan. 6(02). pp.69-86.
Gunjal, T.D., 2017. A SWOT ANALYSIS AND
RECENT FDI CONTROVERSY OF RETAIL
SECTOR IN INDIA. International Research
Journal of Multidisciplinary Studies. 3(4).