Tesco: Retail Performance, SWOT Analysis, and Future Strategies

This presentation offers a comprehensive analysis of Tesco's performance within the retail sector, examining current market trends, including the impact of sustainability and the COVID-19 pandemic. It delves into Tesco's financial performance since 2015, highlighting revenue, profit, and ROI trends, while also acknowledging the challenges posed by competitors like Morrison's and Sainsbury's. The presentation provides a detailed SWOT analysis, identifying strengths such as online facilities and employee rewards, weaknesses like price wars, opportunities in technology and online delivery, and threats like managing online shifts and changing market trends. Furthermore, it explores growth opportunities, particularly in the online platform through membership programs and promotional tools, and offers recommendations for enhancing consumer loyalty and profitability. The conclusion summarizes Tesco's successful operation, emphasizing the potential for growth in the online sector, and the ability to leverage the current pandemic to deal with market competition. The presentation is supported by references to relevant academic literature, providing a well-rounded overview of Tesco's position in the market.

Tesco Presentation

Content Covered
• Current trends in supermarket sector
• Tesco performance since 2015
• Current performance in Tesco
• SWOT analysis of Tesco
• Growth opportunities and Recommendations
• Conclusion

Current trends in supermarket sector
• The current trends in retail sector are depicting that sustainability is one of the major factor
on which the organisations are focusing these days. In order to meet this requirement the
retail sector is successfully focusing upon the health and safety needs due to the current
pandemic. It is also required by them to continuously study the market changes and the
priorities of consumers in order to deliver them with the required services effectively.

Tesco performance since 2015
• When taking the overall performance of Tesco into context it can be seen that the revenues of
organisation was around 53 billion. This is increasing each year as the last increase was up to
1.3 billion. The profit and ROI of the organisation are also increasing. Successfully. However
company had to face some negative effects as their market share were seen declining due to a
number of competitors present for them in the market. Morrison's, Sainsbury, ASDA are
some of the competitors of organisation due to which this downfall was seen.

Current performance in Tesco
• Tesco is a huge retailing organisation which is successfully dealing online and offline. The
company is now focusing upon online delivering in order to maintain low contact due to the
pandemic. The overall sales of organisation due to online sales have increased up to 26.7
billion and the business growth in this segment is also noted to be 69%. however in last 3
months the organisation have seen growth of 7.6% in its revenues.

SWOT Analysis
• Strengths
• Due to the current situation of COVID the online facilities that are provided by the
organisation is its great strength. Along with this the rewards to employees who are working
in this situation is providing benefits to the organisation's image.

• Weaknesses
• The price war which is arising in the market due to competitive pressure on
the organisation is one of the greatest weakness that organisation have to face
now. The profit margin of business is reducing due to it.

• Opportunities
• There are a number of different technologies and machineries that can be
used by organisation in order to successfully grow in the future. Along with
this a new opportunity is of providing the consumers with their requirements
without asking them to step out of their home in this pandemic.

• Threats
• Unable to manage the quick shift into online stores is a threat for the
organisation due to which the physical stores of organisation are facing
difficulty to manage their operational costs. The changing trends in the
market and consumer needs is another threat for the organisation.

Growth opportunities and Recommendations
• Huge Growth opportunities are present for organisation in online platform.
There are various membership and club cards introduced by the organisation
that helps the organisation to enhance their consumer base. They can use
various promotional tools in order to make sure that the loyal consumers have
more opportunities with Tesco rather than going to their competitors. This
will allow benefits for both the organisation as well as consumers.

Conclusion
• With the help of presentation it can be concluded that Tesco is successfully
running in retail sector fulfilling needs of consumer and earning huge profits.
There are a number of opportunities present for the organisation in online sector
which will help them to enhance their profits. They can make use of the
opportunity now created due to pandemic of Covid-19 which will enable them
to grow further and deal with the competition they are facing in the market.

References
• JIANG, Q.W., WU, Y.S. and ZHU, B.Q., 2018. Construction of Logistics Distribution
Performance Evaluation System——Take Nanjing Suning Tesco as an Example. Logistics
Engineering and Management, (2), p.20.
• Alam, S. and Raut-Roy, U., 2019. Evaluating the Effectiveness of Reward Strategy at Tesco:
Evidence from Selected Stores in UK. Indian Journal of Industrial Relations, 55(1).