Business Analysis of Tesco: SWOT Analysis and Strategic Insights

This report presents a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Tesco, a prominent global retailer. The analysis begins by outlining the firm's business context and the rationale for using the SWOT model to evaluate its strategic position. Strengths highlighted include Tesco's wide reach, profitability, diverse product offerings, and intellectual property. Weaknesses identified encompass challenges in integrating acquired businesses, limitations in research and development, and issues arising from controversies and financial instability in some markets. The opportunities discussed involve strategies to capture and retain customers, potential mergers, expansion into new markets, and stronger supplier relationships. Threats include changing customer behaviors, lack of continuous innovation, intense competition, and the impact of legal and currency fluctuations. The report concludes by emphasizing the importance of strategic adaptation to maintain and enhance Tesco's competitive advantage in the dynamic retail landscape.

TESCO

Table of Contents
SWOT ANALYSIS OF TESCO......................................................................................................1
REFERENCES................................................................................................................................3

SWOT ANALYSIS OF TESCO
Tesco is a global retailer which provides food as well as non food products all over the
world (Bajpai and Adhikari, 2018.). Such retailer is facing various external forces. The firm uses
SWOT analysis model to identify internal strategic factors as well as external strategic factors.
Such analysis is a tool which helps enables any firm to understand its strengths along with and
weaknesses, identifying available opportunities and threats faced in the dynamic business
environment. The internal strategic factors are the strengths and weaknesses where as external
strategic factors are the opportunities and threats. The selected model helps manages to analyse
distinct situations of the entity to dominant position in the competitive market (Marketing91,
2019). The model helps in forecasting various strategies of the organisation to determine where
it is today and where it wants to go in future. Strengths of Tesco includes that it is one of the
wide reaching as well as most profitable supermarket who serves to diversified customers with
uncountable products as well as services. Such business entity holds distinct patents and licence
agreements which are beneficial to perform in developed or developing countries. The retailer
has strong portfolio of various products as well as product lines which attracts distinct projects
which helps in building a strong chain of multiple suppliers. Weaknesses of Tesco includes
unsuccessful integration of work with various other organisations in different fields of operation.
Improper investments in the areas of research and development which limits the revenues of the
organisation (Grundy, 2017). There are some segments which requires the highly expertise to
monitor and supervise the new innovative technologies. Various controversies declines the
growth as well as overall scenario of the described business entity. Some of the bad debt in
developing countries disturbs the financial conditions. The organisation lacks strategies to enter
in all the market at the predetermined time period. Opportunities of Tesco contains numerous
ways to capture and retain the targeted customers for long time to increase the market share. By
merging with the rivals to design such low cost products with latest technologies enables the
retailer to maintain its loyalty to provide great services. Diversifying its legs in the new markets
with the help of government agreements in the areas of research and development provides
opportunities to Tesco to gain access in emerging international markets to expand its operations.
Building relationships with multiple suppliers helps in boosting the business. Market
diversification as well as development permits the firm to extend the competitiveness as
compared to its rivals. Threats of Tesco includes the constant changing behaviour of various
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customers. No continuous supply of innovative products or services in response to other players.
Intense competition shakes the stability which puts pressure on overall sales. Liability laws
imposes various claims which forces the entity to change its strategies to resist the changes.
Continuous fluctuations in the laws as well as currencies in different countries affects the
wealth situations and profitability of the selected firm (.Kiziltas and Çalıyurt, 2018).
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REFERENCES
Books and Journals
Bajpai, H. and Adhikari, A., 2018. Retailing in Emerging Markets. In Strategic Marketing Issues
in Emerging Markets(pp. 61-68). Springer, Singapore.
Grundy, T. D., 2017. Dynamic Competitive Strategy: Turning Strategy Upside Down.
Routledge.
Kiziltas, O. and Çalıyurt, K.T., 2018. Corporate Social Responsibility in the Retail Sector: A
Case from Turkey. In Sustainability and Social Responsibility of Accountability
Reporting Systems (pp. 95-124). Springer, Singapore.
Online
Marketing91. 2019. [Online]. Available through: <https://www.marketing91.com/swot-analysis-
of-tesco-corporation/>
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