Strategic Analysis of Tesco: A Comprehensive SWOT Report (BUS301)

This report presents a SWOT analysis of Tesco, a major player in the retail sector. The analysis identifies Tesco's strengths, such as its strong brand equity, customer service awards, and financial stability. Weaknesses include financial profit fluctuations and competitive price pressures. Opportunities include alliances with other brands and expanding into new markets, including online shopping. Threats encompass economic recessions, competition from global retail giants, rising food prices, and government regulations. The report concludes that while Tesco has significant advantages, addressing its weaknesses and capitalizing on opportunities are crucial for sustained success in the competitive retail landscape.

SWOT ANALYSIS

Table of Contents
INTRODUCTION...........................................................................................................................1
SWOT ANALYSIS.........................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
SWOT analysis stands for strengths, weaknesses, opportunities and threats. It is the area
where management team can easily identify internal and external factors which could affects
business performances (Desta, Asgedom and Asheber, 2014). Present report is based on Tesco
which is retail sector enterprise and providing several products and services to attract customers.
SWOT ANALYSIS
In the Tesco, SWOT analysis assesses business performances to sell products and
services in different countries. In this analysis, major elements of the company assists measures
performances with competing it with other retail sector enterprises.
Strengths
 Tesco business unit has several awarded for effective retail operations, customer services
and online shopping, etc. Therefore, it assists to attract several customers through
develops positive impact on them.
 It is the largest and most profitable supermarket in retail sector so that they have
capabilities to compete with other same businesses effectively (Desta, Asgedom and
Asheber, 2014).
 Due to significant cash reserve, there are several kinds of new operations develops
through new equipments that make strong financial position within the economic
perspective.
 Due to high brand equity, name of the enterprise and global brand can be easily
developed that make long term profits and revenue.
Weaknesses
 Financial profits level sometime creates negative impact on the chosen retailer
performances due to they have to focus on competitor outcomes as well.
 Competitive pressure led to the price wars that reduce retailer profit margin.
 From Tesco, customers are not effectively buying many items together because its is
related to having less disposable income.
 Further, to keep inventory, the business also required to implement high amount of cost
to maintain efficiency in their products and services (Quix and van der Kind, 2016).
Opportunities
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 With the alliances brand and admired companies, the selected business has many
opportunities to offers several products and services to attract many customers together.
 With the help of entering in new market through joint venture strategy, Tesco has
opportunity to conduct market research and enhance performances in several areas
(SWOT Analysis of TESCO Group, 2017). This is because, it assists to save cost to of the
business operations.
 There are high opportunities in front of Tesco to operate their functions as privately label
areas of market.
 There is significance opportunity to enhance online shopping through home delivering
facilities.
Threats
 Economic recession is the biggest threat that also reduce market share of the organisation
(Desta, Asgedom and Asheber, 2014).
 The company has also competitive threat due to coming of global retail giant’s due to
which Tesco need to offer their products and services at low costs.
 Food prices continuosly enhances in the future all around the world. Therefore, it reduces
consumer choices.
 Government regulations and political landscape is also putting pressure on the chosen
firm activities. Therefore, the business need to make significant changes to meet with
objectives through measure positive results and additional expenses (Haleem and
Jehangir, 2017).
CONCLUSION
From the above report, it can be concluded that Tesco has significant advantages due to
their strength to enhance profits and revenue in international market. Furthermore, weaknesses
create negative impact on the company which need to be reduced in successful results from the
business. At last, opportunities describe through weaknesses can be overcome and enhance
positive results at business unit.
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REFERENCES
Books and Journals
Desta, A., Asgedom, H. B. and Asheber, M., 2014. analysis of kaizen Implementation in
Northern Ethiopia’s Manufacturing Industries. International journal of business and
commerce. 3(8). p.39.
Haleem, F. and Jehangir, M., 2017. Strategic Management Practices by Morrison PLC, UK.
Analysis, Lessons and Implications. Middle East Journal of Business. 12(3).
Quix, F. and van der Kind, R. P., 2016. Retail marketing. Routledge.
Online
SWOT Analysis of TESCO Group, 2017. [Online] Available through:
<http://www.businessteacher.org.uk/guides/business/swot/swot-analysis-of-tesco.php>.
[Accessed on 19th August 2017].
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