Global Business Environment: SWOT Analysis of Tesco Retail Corporation

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This report presents a comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Tesco, a prominent retail company operating in the United Kingdom and internationally. The analysis delves into Tesco's internal factors, such as its strong customer base, expansion strategies, and innovative marketing, while also acknowledging its weaknesses, including challenges in specific markets and past controversies. The report then explores external opportunities, such as leveraging technology and employing new business strategies, as well as threats, including intense competition and environmental concerns. Furthermore, the report examines the impact of the SWOT analysis on key functional areas like marketing and finance, highlighting how the analysis informs strategic decisions and influences performance. The conclusion summarizes the key findings, emphasizing the importance of SWOT analysis for Tesco's strategic planning and overall success in the competitive retail industry.
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SWOT Analysis
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Part 01..............................................................................................................................................1
SWOT Analysis...........................................................................................................................1
Part 02..............................................................................................................................................2
Impact of SWOT Analysis...........................................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4
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INTRODUCTION
SWOT analysis is conduct by the companies or businesses to know their four major
internal factors called; strengths, weaknesses, Opportunities, and threats. With the help of this
analysis the companies are able to take some specific decisions to grow in the market. This is
discusses the SWOT analysis of the Tesco. It is one of the leading retail companies in the United
Kingdom.
Part 01
SWOT Analysis
Strengths: Tesco has very powerful customers base in all over the world. In their home country
United Kingdom, it has large number of loyal customers. The company is also too good at their
expansion process (Rytych, 2017). Currently it has many stores out of UK, like; Ireland,
Malaysia, Czech Republic, Poland, Hungary, and Thailand, etc. It has some exclusive range of
products which really helpful in gain people attention in the market. The marketing team of the
Tesco is also very productive at their workplace. It always develops or innovate new ways of the
marketing which highly promote their products and services in the international market.
Tesco is also very successful in employ diversification strategy in their operations. It has
very popular range of clothing. It believes in provide trendy cloths to the customers, and this
aspect is very helpful for the company to attract new customers towards brand. From the last few
years the company also offering mobile phones to the customers.
Weaknesses: Tesco is not much successful in the retail markets major countries called; Japan
and United States. It is poor at facing competitors in the market which has high market shares
than Tesco (Patel, 2018). The company loose many customers after their controversies with
Weatherford and Varco. These controversies are raised because the Tesco is violated their some
patents. On that time company's market reputation was also decreased.
The company has many subsidiaries companies in the world, but they are not working
like Tesco. These subsidiaries are slow at their growth aspect. Some products and services of the
company are only affordable for the people which has high income and high standard.
Opportunities: Currently the Tesco uses high technology in their worldwide operations. So,
there are huge opportunities for the company to use some latest technological gadget and
equipment also in their business environment to gain effective results. The search &
development team of the company also has opportunities to innovate and develop some new
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range of the products for new markets. These products will help to attract large number of
customers in the new markets segment in the international market.
There are various latest and modern business strategies available for the company
(Bhasin, 2018). In this case if Tesco employ these strategies in their business, then it will get
great results. In other hand there are still huge opportunities to the company to more expand their
operations and activities in the new countries.
Threats: In their home country United Kingdom it has great market share in the retail industry.
It has some major competitors called; ASDA, Sainsbury's, and Marks & Spencer. In the many
market segments of the UK these all competitors are very challenging for the Tesco. The
company always working on improve their performance in the market to face these competitors,
but their competitors are also doing same thing. There are company need to take some extra
ordinary attempts in the market to gain high competitive advantage in the market.
The company highly need to follow some legal industrial terms of global environment
organizations. There are the management of the company is responsible to avoid such attempts in
their operations which negatively impact the environment (Solutions and Belt, 2017). Some legal
terms of business also need to follow by the company to run their all business activities in ethical
way. Otherwise, Tesco will face issues like court hearing in their business environment.
Threat of new entrant is not much challenging for the company, because it stays in the
market for long time and highly successful in making huge customer base. In case if new
company new enter the retail industry of the United Kingdom. Then that new company need use
very effective marketing strategies than Tesco, and according to the current market situations it
is totally like an impossible. Tesco is already built a safe zone for it.
Part 02
Impact of SWOT Analysis
SWOT analysis is really impacting and affecting the major functions of the Tesco called;
Marketing, HRM, Finance, Research and Development, etc.
Marketing: With the SWOT analysis the marketing department is able to know what's their role
and importance in the company's operations. In case when the marketing department realize their
current performance is too good, then it motivates to put more efforts in the company to give
their best of the best (YIFANG, 2018). On the basis of the strength of SWOT, the current
reputation of the Tesco is very good. This factor also impact to the marketing department to
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more improve their performance for maintain this high reputation of the company forever in the
market.
Finance: In the expansion process the Tesco is too good, but it is not much easy for the company
because there face high risk while enter the new market. For face this type of conditions the
company pre-set their financial aspect in proper way. The marketing operations of the company
are also very good, but the finance department is the main source of fund to run these all
marketing operations in the international market. So, the SOWT analysis is highly impacting and
affecting the finance function in the Tesco.
CONCLUSION
It can be concluded that the SWOT analysis is very productive for the company to
identify their internal environment of the business. It is highly impacting to each function of the
Tesco. With the help of SWOT analysis the top-level management is able to take many important
decisions. On the basis of this analysis the company highly need to focus their on weaknesses,
but overall conditions of the Tesco is too good, because in the current time the company is on the
progressive path in the retail industry.
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REFERENCES
Books and Journals
Patel, S., 2018. “An Effect of Consumer Promotional Tools on Brand Equity for Pantaloons
Fashion & Retail Ltd. in Jamnagar City.
Rytych, D., 2017. International distribution channels for floorball equipment to the Czech
market.
Solutions, I. and Belt, G. B., 2017. THE IMPACT OF STRATEGIC MANAGEMENT AND
STRATEGIC THINKING APPROACHES ON BUSINESS PERFORMANCE OF
COMPANIES OPERATING IN THE RETAIL INDUSTRY.
YIFANG, L., 2018. RESEARCH ON BUSINESS STRATEGY OF 7-ELEVEN IN THAILAND.
(Doctoral dissertation, SIAM UNIVERSITY).
Online
Bhasin, H. 2018. SWOT Analysis of Tesco Corporation. [Online]. Available through :
<https://www.marketing91.com/swot-analysis-of-tesco-corporation/>.
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