Tesco's F&F Fashion Retail: Market Analysis and Strategies Report

This report provides a comprehensive analysis of F&F Tesco's fashion retail operations. It begins with an overview of the company and its position in the market, followed by an examination of key changes in the macro-environment using PESTLE analysis, including political, economic, social, technological, environmental, and legal factors. The report then delves into the micro-environment, utilizing Porter's Five Forces to assess the bargaining power of buyers and suppliers, competitive rivalry, the threat of substitutes, and the threat of new entrants. Suggestions for different strategies and tactics are offered, such as increasing socialization, ensuring pre-political changes, and implementing ways to avoid data theft. The report concludes with recommendations to help F&F Tesco achieve its objectives and targets, emphasizing the importance of adapting to market changes and leveraging technological advancements.

Retail Theory and Practice

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Overview of company............................................................................................................1
Key relevant changes of F&F Tesco considering macro environment..................................1
Key relevant changes of F&F Tesco considering micro environment...................................3
Suggestions on different strategies and tactics.......................................................................4
Recommendations..................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Retail industry is one of the largest growing and dynamic sector which deals with
processing of goods. It is also considered as an important area because it helps in making the
process of purchasing and selling easier for customers (Shin and Eksioglu, 2015). The report is
about discussing fashion retail operations of F&F which is a part of Tesco. Cited firm is focused
on delivering their customers with high quality services. Apart from this they also conduct
research to analyse preference of service users. It also involves various macro and micro
environmental factors affecting processing of functions and operations of F&F Tesco. Therefore,
for coping with various conflicts and challenges, different strategies and approaches have also
been discussed in the report. The report also discusses some recommending factors that can
prove helpful for Tesco in attaining their major objectives and targets.
Overview of company
Tesco is a leading fashion retailer of UK which is expanded to 12 other countries as well.
Considering each store of Tesco in all 12 countries, it has approximately 7,000 stores worldwide.
Out of four largest supermarkets, Tesco comes as one within them. With a consistent share of
about 25%, it makes the size of firm bigger enough. Position of F&F Tesco in the market place is
that it out of one, from four of the popular and leading retailer stores. Although company faced a
loss of about 6.4 billion in the year 2014 -2015 but after a few months, firm again started with a
boom and since then, it has been successful enough in maintaining their position in the market
place. As per the statistics, every hour, Tesco initiates purchase of about 8 million. Therefore,
techniques and strategies involved in Tesco can be considered as effective enough that they have
successfully involved and expanded their operations worldwide.
Key relevant changes of F&F Tesco considering macro environment
There have been various changes in the macro environment of F&F Tesco, so same can
be analysed with the help of Pestle analysis. Different aspects demonstrating impact are
discussed as below:
Political
Political factors play a major role in overall functioning of the organisation. Whether it is
about tax or involvement of different laws, it directly throws an influence on the rate of
processing of operations. A well-known example of this can be considered as fact that if in case
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the government makes an increase in tax amount, it may affect productivity rate of F&F Tesco. It
is because if the tax on each product will increase, it may disappoint customers to a huge extent
and this may also result in less sales of F&F Tesco (Zakaria, Rahman and Osman, 2014). Also,
the firm has expanded in various countries, so pricing and tax structure may vary from one place
to another. Economic condition of the country also plays an important role because if in case,
financial stability of some area is less, then it may directly decrease productivity of company.
So, by such ways, political factors can throw an impact on the processing of functions and
services of F&F Tesco. Government of UK has refused initiative held by F&F Tesco about tax
structure in order to avoid any extra hiking of tax on products.
Economic
Economic condition of country and factors associated with it plays an important role in
analysing the position of F&F Tesco in market place. These different factors can be considered
as labour costs, profits, policies etc. Minimum wage rate by the government of UK has been
already set, so F&F Tesco have to follow policy and ensure not to provide lesser amount to any
of the employee. Different economic factors such as profits and prices also play an important
role in maintaining balance between different operations of F&F Tesco. Pricing strategy of F&F
Tesco should be that they provide customers, products that are good in quality and are affordable
as well. So, this can help F&F Tesco to attain higher productivity rates and a wide popularity as
well. It will however help in improving economic condition of the country as well.
Social
As the people nowadays are much busy in their daily life chores. So, there might be a
possibility that even if they want to buy something, they may not feel able enough to visit store
and roam around there. So, considering this, F&F Tesco can ensure to implement website so that
it can be quite easy for consumers to order online. This can be termed as a very attractive
measure that can help them to impress a wide range of customers. Also, F&F Tesco focus on
taking regular feedbacks from customers because by this way, they will be able to derive areas of
improvement. This can term helpful as F&F Tesco can ensure to make changes and
improvements in the factors that actually require some modification.
Technological
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For coping with different challenges of today's world, F&F Tesco has implemented the
involvement of various technological measures. Some basic examples of technologies involved
by F&F Tesco includes mobile payment system etc. so, these can act as a measure of flexibility
for their customers, making their experience easier and happier.
Environmental
There is a huge amount of pressure from the government to minimize issues and factors
related to environmental changes and sustainability. So, F&F Tesco needs to involve effective
ways that can provide a sort of guarantee to maintain the sustainability. So, F&F Tesco can make
sure to involve such ways for a better sustainability rate.
Legal
Policies and initiatives by government also plays a major role in operations and functions
of the firm. Some very popular examples of this can be taken as of changing price structure etc.
A policy by government initiated the fact that there will be less amount of wages for night shifts
etc., so, this is quite disappointing for customers as there may have changes in prices or quality
(Nakamura and Suzuki, 2015). Therefore, for coping with such changes, F&F Tesco can make
sure to involve proper preventive measures.
Key relevant changes of F&F Tesco considering micro environment
There are various factors that throws an impact on micro environment of the organisation.
So, these can be efficiently analysed by means of Porter's five forces. So, all factors associated
are discussed as following:
Bargaining Power of buyers
Power of buyers refers to capability of customers to decrease the prices to an extent. It
depends on approximate number of buyers of the company. If F&F Tesco has enormous number
of buyers, then there is a very less possibility that they will permit decreased rates of customers
but if in case, there are fewer buyers, then the firm can cooperate with pricing.
Bargaining Power of suppliers
Rate of suppliers also relies on a few factors. If number of suppliers will be less, then
F&F Tesco may have to provide them the asked price but if in case, number of suppliers are
higher enough, then power of suppliers can be reduced.
Competitive rivalry
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Competitive rivalry refers to fact that as F&F Tesco is a well-known and leading retailer,
so there might be various competitors of it as well. So, there is a possibility that the rivals may
try to involve some strategy or way by which they can be able to degrade the position of F&F
Tesco in market (Zakaria, Rahman and Osman, 2014). So, it is better if F&F Tesco makes
involvement of different measures that are preventive enough that it can help them to deal with
such challenges.
Threat of substitutes
The competitors of F&F Tesco can make involvement of various factors so that they can
increase their popularity and image in the market place. Also, they can make substitutes of
products that are being sold by F&F Tesco and can sell them at lesser prices just to get the
attention of people. So, for coping with this factor, F&F Tesco can ensure to take copyright of
their products so that no other external person can copy or steal their idea. This can act as an
effective measure because in case of copying or stealing the ideas and rivals may have to pay
huge penalties. Therefore, these measures can help F&F Tesco to stay prevented from such types
of complications.
Threat of new entrants
As the retail fashion industry is growing on a large scale, so many people are trying to
enter in the market. So, this can be termed as a threat because when new entrants will involve in
market with same products, then there might be a possibility that people may attract towards it.
So, this can however decrease popularity and productivity rate of F&F Tesco. So, F&F Tesco
can make sure to involve some very interesting ways and offers that their customers cannot go to
the new entrants just for trying. Also, Tesco is a branded and trusted brand, so there is a lesser
possibility that their customers will go to new entrants for any product or service.
Suggestions on different strategies and tactics
While considering the macro environmental factors, there are some factors that throws a
positive influence but then, at the same time, there are some which needs some sort of
modification. So, different strategies can be involved for making effective changes accordingly.
Increasing socialization
F&F Tesco can ensure to involve different ways of increasing the socialization of their
products and services. A well-known example of this can be considered as the fact that if F&F
Tesco makes involvement of a website or develop any social media page. Then, on that page,
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they can post about different products and services of their own. This will help them to gain the
attention of people more quickly. Also, by various means, they can ensure to increase the
visibility of their page and websites. They can achieve this by means of various analytical tools
such as search engine optimisation etc. Therefore, in this, F&F Tesco may have to make sure to
paste link of their websites and pages on some popular websites. This helps in increasing the
popularity of the website. Also, it further helps in a large production rate of the products and
services of F&F Tesco. Another important factor that can be considered by F&F Tesco is to take
feedbacks from customers on a regular basis (Kananukul, Hodges and Watchravesringkan,
2015). By this way, firm can be able to analyse the measures that are not much liked by
customers. So, they can make proper improvements and changes accordingly. Also, this factor
somewhere makes the customers happy enough because they also consider the fact that they hold
some sort of importance for the company. Therefore, it helps in balancing their focus towards the
company.
Ensuring pre political changes
During the time of change in government etc., it is obvious that there may be some
political or legal factors that can affect the operations of F&F Tesco. Therefore, for avoiding
immediate issues and complications, F&F Tesco can make the changes for pricing etc. before
only. A very basic and well known example of this can be considered that if F&F Tesco will
ensure to keep prices affordable enough with a lower tax rate, then persons will be comfortable
with a slight increase in the overall pricing. Therefore, pre assessment measures should be taken
care because it helps in avoiding any further complications in the future.
Implementing ways for avoiding stealing of data
As F&F Tesco is one of a leading brand, so there might be a possibility that the rivals and
competitors may try to steal the information or data of F&F Tesco and make use of it for
implementing the same products like that. Also, for attracting customers with the same products,
they can also sell their products at affordable prices. So, for avoiding such complications in the
future, F&F Tesco can make sure to register their brand with every single process and product so
that no external person may be able to take its copyright. There are proper laws made for
copyright that if in any case, some third party steals the information, then they may have to give
all the penalties and these penalties are higher enough. Also, there must be a proper and complete
agreement between all the workers associated with the same. It is because this acts as a source of
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evidence for all the complications etc. Therefore, it can be considered that registering all the
work including practices, products and services is important for F&F Tesco to be done.
Recommendations
There are some factors that F&F Tesco can involve for achieving a better competitive
advantage, thus a better rate of popularity and productivity can be attained. All these measures
are discussed as following:
 F&F Tesco can ensure to take proper feedbacks from their customers because this makes
the customer happy as well. Also, by this way, they will be able to know where they
actually lack and where is a need of improvement. On the basis of feedbacks and reviews,
they can make all the modifications accordingly. This will help them to maintain their
focus on the basic objectives, thus satisfying the customers and achieving a higher
productivity rate as well.
 Along with this, F&F Tesco can also make involvement of some offers and discounts
because it will help them to attract all customers more often. It is because there are major
possibilities that the rivals keep trying to involve various ways by which they can
minimize the image of F&F Tesco, but with the help of effective ways and strategies,
they can be able to cope with every single challenge, thus it will help them to attain
higher competitive advantage in market place (Jaafar, Kamarul Zaman and Salleh, 2016).
 F&F Tesco can also involve a proper and appropriate implementation of their website so
that the customers who do not want to visit the store because of any reason such as tired
ness, lazy ness etc., can be able to shop online. Therefore, this will increase the feasibility
of the customers to a huge extent. Therefore, it can help in attaining all objectives to
result in good and better outcomes.
CONCLUSION
It can be concluded from the report that F&F Tesco is a leading retailer which deals with
a variety of operations worldwide. Although there are factors that influences the processing of
various external as well as internal factors of the company, but with the help of efficient ways,
techniques and strategies, they can cope with the negative measures and modify them to the
positive one. Different approaches and tactics have been discussed in order to sort the conflicts
and challenges of the market place so that the firm can achieve an efficient position in the market
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place. It will also help them to gain higher productivity rate along with the trust and attention of
customers.
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REFERENCES
Books and Journals
Jaafar, J., Kamarul Zaman and Salleh, M.M., 2016. Critical success factors of retail and
wholesale industry: a case study. International Journal of Supply Chain
Management, 5(2), pp.94-100.
Kananukul, C., Hodges, N. and Watchravesringkan, K., 2015. Profiling Thailand’s Retail
Industry: An
Martínez-Ruiz, M.P., González-González, I., Jiménez-Zarco, A.I. and Izquierdo-Yusta, A., 2016.
Private labels at the service of retailers' image and competitive positioning: The case of
Tesco. In Handbook of research on strategic retailing of private label products in a
recovering economy (pp. 104-125). IGI Global.
Nakamura, M. and Suzuki, K., 2015. A Study on the Changing Structure of Retail Logistics.
In Toward Sustainable Operations of Supply Chain and Logistics Systems (pp. 67-79).
Springer, Cham.
Shin, S. and Eksioglu, B., 2015. An empirical study of RFID productivity in the US retail supply
chain. International Journal of Production Economics, 163, pp.89-96.
Vu, M., 2016. IS THE BALANCED SCORECARD USEFUL IN A COMPETITIVE
INDUSTRY?: Using Tesco PLC as a case study in the UK grocery retail industry.
Wood, S., Coe, N.M. and Wrigley, N., 2016. Multi-scalar localization and capability
transference: exploring embeddedness in the Asian retail expansion of Tesco. Regional
Studies, 50(3), pp.475-495.
Zakaria, I., Rahman, B.A. and Osman, M.A.F., 2014. The relationship between loyalty program,
customer satisfaction and customer loyalty in retail industry: A case study. Procedia-
Social and Behavioral Sciences, 129, pp.23-30.
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