SWOT Analysis and Marketing Challenges for Tesco

This report discusses the internal and external business factors that can impact the business productivity and operations of Tesco. It also includes determination of strength, weaknesses, threats and opportunities and ways to overcome them by making suitable recommendation.

Principles of
Marketing
MC4061QA

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Marketing refers to an activity a organisation undertakes to promote buying and selling of
their product and services. Marketing includes different elements advertising, selling and
delivering products to ultimate customers. The service sector which is being chosen for this
report is retail sector, which markets its products and services to customers through physical and
online stores (Jacob, Pez and Volle, 2022). The report is based on Tesco, it is a British
multinational groceries and general merchandise retailer. Its headquarter is in Welwyn Garden
City, England. It was the third largest Retailer in the world in revenues. It is one of the market
leaders and offers wide variety of food and non food products which includes drinks,bakery,
grocery, home and entertainment products, baby products and more. This report discusses the
internal and external business factors that can impact the business productivity and operations. It
also includes determination of strength ,weaknesses, threats and opportunities and ways to
overcome them by making suitable recommendation.
MAIN BODY
Swot analysis
There are various external and internal factors that can impact the functioning of an
organisation. In order to overcome their impact and challenges, a proper analysis, should be done
by organisation. It will enable the organisation to make different strategies and plans for their
operations that lead the organisation to retain growth and success. In context to Tesco, to
understand the internal and external factors an analysis is done which is discussed as follows-
Internal factors: These are those factors on which business holds control and happens within an
organisation. Internal factors are influence by the attitude and intention of the superiors and
subordinates and can impact the decision making process of an organisation.
Strengths Market share: Tesco holds a good market share as a grocery retailers which enables the
organisation to hold a superior position and competitive advantage in the marketplace to
which there are no other competitors (Zhang, Zhang and Zhu, 2019).
 Adaptability: Tesco have the ability to adopt and respond the changes quickly. In Covid
pandemic the company manages to double its sales and revenue by providing its
customers with online services that have increased its overall market share.
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Weaknesses
 Quality control: The company Tesco follows various quality control measures but in
spite of them they are constantly having complaints of the customers to bring
improvement in their products and services, which can impact the customer base and
brand value (Espinós and et. Al, 2021).
 Inventory management: The organisation faces mismanagement in displaying new
products and services in place of expired products which may influence the brand value.
External factors: These are the functions that business have no control. It can impact the
success of an organisation in long term. These are the factors that are uncertain and can impact
the market share and competitive advantage.
Opportunities: Online Services: Tesco should adopt more technological advancement and innovation in
their products and services that will results in overall sales and revenue of the
organisation.
 Rise of meat alternatives: There is rising global demand for plant based sources and
other meat alternatives. Adoption and switching to different meat alternatives lead to
sustainable business growth and success.
Threats Brexit and supply chain: It has impacted the importation of goods that are used to sold in
the supermarkets. Tesco have faced problems due to restrictions at port of entries and
have negative impact on its supply chain.
 Competition: The ownership of ASDA with big supermarkets can put a threat to Tesco
market share. The rising competition will lead in loss of market share and competitive
advantage.
Strength
Tesco hold a good market position to remain
superior from other existing brands (Adem,
Çolak and Dağdeviren, 2018). The
organisation have robust leadership and
management practices that will help them to
Weaknesses
Along with strengths it has weaknesses which
involve leadership changes, quality control
measures, shortage of products in stores that
may lead an organisation to loose its market
share.
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compete with the rivals. It holds a good
financial background and market share. It is
adaptive to changes and good in undertaking
innovations (Kumari and et.al, 2020).
Threats
Tesco should consider threats because it can
lead organisation competitors to hold the
market share. Threats which are being faced by
Tesco are Brexit impact on the territory and the
supply chains. The rising competitors in the
market can also lead a negative impact on
organisation growth and success.
Opportunities
The opportunities that are available to Tesco
are emergence of online grocery sales, rise of
demand for met alternatives in order to have
sustainable growth and more that can help
them to acquire global market share.
Key marketing challenges for Tesco:
In order to deal with the various challenges it is very essential to understand the reasons
and factors that can impact the growth and success of the organisation. Understanding reasons
for these challenges will help the organisation to overcome them effectively and efficiently.
Reasons behind Tesco weaknesses:
Quality control: There is lack of proper implementation of strategics and plans. Organisation
structure of Tesco is not compatible enough to expand its market share that lead an organisation
to limit its expansion of activities and products segments. Tesco is unable to maintain its quality
because of providing its goods and services at a lower prices to attract more and more customers.
The company is relying on its suppliers to restock and maintain fresh quality of products being
offered.
Inventory management: Tesco do not have appealing and well trained staff and managerial
practices that lead the organisation to face problem in proper arrangement of products and
services as per customers expectations and wants (Latha, Gokul and Chipichakkaravarthy, 2022)
. The organisation faces problems with inadequate resources to fulfil the requirement of
operations which have an impact on companies brand image.
Reasons behind Tesco threats:
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Brexit and supply chain: Due to war between the territory, the supply of goods and services has
been abandoned between the European and UK Territory which have impacted the operations
and functioning of organisation, as they are unable to fulfil the requirement of its productions
and customers.
Competition: ASDA is acquiring a great share in the marketplace by acquiring different
supermarkets and organisations which can impact an organisation competitiveness in the
marketplace and lead them to loose their market share (Karthik and Ganapathy, 2021).
Recommendation to overcome challenges and threats:
To overcome different challenges and threats, here are some of the recommendations
which Tesco should adopt which are discussed below-
 The company should arrange regular training and knowledge development programmes
for its employees, that will lead Tesco to have competent and compatible that will lead
them to have sustainable development in business.
 Tesco should poised its products diversification and product development strategies that
will enable the organisation to remain competitive in the marketplace.
 Tesco should use diversified strategy to attract their customers to its online stores,
physical stores and digital entertainment segment. These strategies will enable the
organisation to achieve growth and success.
 Tesco should make geographical diversification that will enable the organisation to trade
with other suppliers and traders across the globe and help in fulfil the requirement of
goods and services.
 Tesco can take ownership of other organisations in the marketplace that have good
market strategies and policies which can lead the organisation to acquire a large share in
the marketplace.
 Tesco should generate employment opportunities that will enable the organisation to
acquire a competent workforce that will help organisation to make brand image and
retain a competitive edge (Mican, Sitar-Tăut and Moisescu, 2020).
 Tesco can make use of different strategic business unit to enhance its competitiveness
within the marketplace because these firms holds efficiency in operations, have financial
targets, geographical reach and more that can help organisation to strengthen its market
segments.
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 Tesco should adopt technological advancement and innovations in their products and
services which includes self services for customers and online payment in order to
provide convenience to shop their groceries and other items.
 Tesco should include other meat alternatives and provide vegan and healthy food options
because of growing demand in the marketplace.
CONCLUSION
From the above report it is concluded that different organisation uses various marketing
plans and strategies in order to hold a competitive position in the marketplace. This report
discusses a particular service sector which is retail, which involves providing of products and
services to ultimate customers. This report discusses identification of organisation strengths and
weaknesses , threats and opportunities that enable the organisation to maximise its
competitiveness in the marketplace from the other existing organisations. It also suggest various
recommendation that will enable the organisation to overcome its challenges and remain
competitive in the marketplace.
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REFERENCES
Books and Journals
Adem, Çolak and Dağdeviren, 2018. An integrated model using SWOT analysis and Hesitant
fuzzy linguistic term set for evaluation occupational safety risks in life cycle of wind
turbine. Safety science, 106, pp.184-190.
Espinós and et. Al, 2021. Impact of chronic endometritis in infertility: a SWOT
analysis. Reproductive BioMedicine Online, 42(5), pp.939-951.
Jacob, Pez and Volle, 2022. Principles, methods, contributions, and limitations of design
science research in marketing: Illustrative application to customer journey
management. Recherche et Applications en Marketing (English Edition), 37(2), pp.2-29.
Karthik and Ganapathy, 2021. A fuzzy recommendation system for predicting the customers
interests using sentiment analysis and ontology in e-commerce. Applied Soft
Computing, 108, p.107396.
Kumari and et.al, 2020. Blockchain and AI amalgamation for energy cloud management:
Challenges, solutions, and future directions. Journal of Parallel and Distributed
Computing, 143, pp.148-166.
Latha, Gokul and Chipichakkaravarthy, 2022, March. A Study on Consumer Preference Over
the Retail Format During and Post Covid Pandemic And Adoption of Digital
Technologies to Meet Shopper's Expectations. In 2022 International Conference on
Advanced Computing Technologies and Applications (ICACTA) (pp. 1-7). IEEE.
Mican, Sitar-Tăut and Moisescu, 2020. Perceived usefulness: A silver bullet to assure user
data availability for online recommendation systems. Decision Support Systems, 139,
p.113420.
Zhang, Zhang and Zhu, 2019. Retail service investing: An anti-encroachment strategy in a
retailer-led supply chain. Omega, 84, pp.212-231.
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