Tesco Performance Evaluation: Trends, SWOT, and Growth Opportunities

This report provides an in-depth analysis of Tesco's performance in the retail industry. It begins by examining current trends in the supermarket sector, such as the adoption of advanced technologies and the rise of e-commerce, highlighting Tesco's use of efficient warehouse systems and partnerships for logistics. The report then assesses Tesco's performance since October 2015, noting its strong market share and increasing profits, particularly its growth in online sales. A detailed SWOT analysis is conducted, identifying Tesco's strengths (brand recognition, high profit margins), weaknesses (past financial scandals, failed international ventures), opportunities (strategic alliances, e-commerce expansion), and threats (market controversies, Brexit). Finally, the report suggests growth opportunities, including mergers, acquisitions, and exploring new markets, concluding that Tesco can succeed by adopting effective techniques and automation. The report is supported by several academic references.

Performance evaluation of TescoGROUP MEMBERS:
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INTRODUCTION
Retail industry is increasing rapidly by adopting several recent trends
which are necessary to sustain in market in long run. TESCO is a
retail giant based on UK. It deals in groceries and general
merchandise across the globe. Company has presence nearly in 13
countries worldwide. In the current presentation recent performance of
entity has been analyzed. In addition SWOT analysis is carried out to
evaluate internal performance of organization. Lastly, growth
opportunities along with recommendation for further betterment are
included in presentation.

Current trends in the supermarket sector
It is analyzed that new and advance technologies are being used by
retailers in order to serve customers in a better manner. Now
companies are offering facilities to consumers to purchase products
online to provide them wider choice to select most suitable product.
E- Commerce has been taken over the traditional bricks and mortar
model as now consumers give more preference to virtual shopping.
Efficient warehouse and Automations are being used by TESCO in
order to get competitive edge at market place (Abbasi, 2017). They
have partnership with Ocado to use robotics for effective logistics
management. In addition the website of entity is user friendly and
provides ease to customers to place the order as per requirement.

Tesco performance since October 2015
TESCO is retail giant that has presence in nearly 13 countries
globally. It owns tremendous market share in retail industry. Most
of the retail market within UK is acquired by entity. Company is
considers as the first choice of customers for groceries and general
products that is increasing its profit rapidly. In addition, it is also
considered as a good place to work thus able to attract more
competent and qualified staff (Alam and Raut-Roy, 2019) As per
the report organization has booked profit of approx 1072 million in
2016 that is growing rapidly. In 2015 entity faced loss of nearly 7.4
billion but after that its sales as well as profit are continuously
increasing at higher rate.

Current performance of Tesco
TESCO is performing remarkable and earn sufficient profit in
present time. As current pandemic has changed the trend now
people are giving preference to online shopping. Thus entity
booked higher online sales in this period. As per the recent report it
reported overall 69 % growth in online business. That will help in
its further development. Although, outlets of organization
witnessed decrease in number of customers but it will get adjusted
with plunge in online sales.

SWOT analysis of Tesco
It refers to a tool that is used in order to monitor the strong points of
TESCO that strengthen its performance at market place. In
addition, weak points which need to be improved by entity to earn
higher profitability are also analyzed by this framework. Further
there are certain opportunities of growth and success along with
threats also assess with the help of SWOT analysis (Anshari and
Lim, 2017).

STRENGTHS
TESCO is a prominent brand of groceries that provides a wide range
of products to customers at international level. It is earning higher
profit margin relatively as per its annual report profit of entity was
increased by 28% (Evans and Mason, 2018).
Market share of company is really high as it owns nearly 27% of retail
market industry within UK. It will provide an edge to TESCO over
other rival firms.
There are ample of stores in different countries across the globe are
owned by organization that make it enable to target a huge segment of
domestic as well as international buyers.

WEAKNESSES
Company faced several accounting and financial scandals that
adversely affect its existing brand image in market.
In addition, TESCO failed in its operation in US and Japan market
thus had to wind up its business activities in those countries.
Although market penetration strategy to provide quality goods at
reasonable price are helpful to increase in sales but it incurred huge
losses for organization (Grant, 2016).

OPPORTUNITIES
● Strategic alliance and Joint ventures with other brands will be
beneficial for entity to grow and expand its operations at wide
level.
● E- Commerce as well as online platforms can be used by TESCO
to enhance its presence at global market place(Michelini,
Principato and Iasevoli, 2018).
● Company can expand its business in emerging markets such as
Turkey, Indonesia in order to inflate sales and profit margin.

THREATS
There are several market controversies about entity that may hamper
its current image among customers.
Legislations, government rules and regulations may increase legal
hassles for TESCO and significantly affects its performance and
efficiency in market.
Brexit is the biggest threats for company as it has been created several
uncertainties within UK that will also influence operations of entity.

GROWTH Opportunities & Recommendations
There are several opportunities for growth and success are present
for company at market place. It can associate with other
organizations through merger and acquisition, joint venture,
strategic alliance and many more. This will help TESCO to expand
operations at wide level in various countries. In addition, entity can
adopt effective techniques, automation to survive in market for a
longer period of time. Further, there is an option to explore
business functions in new markets it was not targeting so far. Thus
above stated strategies are essential for organization to get operate
successfully.

Conclusion
As per presentation, it can be concluded that there certain trends
such as automations, new and evolve techniques are being applies
in supermarkets in order to provide better experience to customers.
Here, discussion has been carried out regarding current
performance of respective entity that is remarkable and make it
enable to earn higher profit margins. Strengths differentiate an
entity from others along with this there are some weak points
which need to be improved. Further, growth opportunities facilitate
future growth and success of organization.