Analysis of Tesco's Competitive Position and Challenges in Retail

This presentation analyzes Tesco's current position within the food retail industry, focusing on its competitive landscape and key issues impacting the organization. The analysis employs environmental frameworks such as PESTLE and Porter's Five Forces to assess external factors and competitive dynamics. Internal analysis is conducted using McKinsey's 7S model and SWOT analysis to evaluate strengths, weaknesses, opportunities, and threats. The presentation covers Tesco's product and marketing strategies, management structure, and financial performance, offering insights into its market position relative to competitors like Marks & Spencer and Sainsbury’s. The findings highlight the impact of political, economic, social, technological, legal, and environmental factors. Recommendations are provided to enhance Tesco's competitive advantage, including strategic alliances and market expansion strategies. The research utilizes secondary data from the internet and academic journals.

The Current Position of Tesco in relation to
the competitors and the key issues that is
impacting on the organisation

TOC
• The Current Position of Tesco in relation to the competitors and the key
issues that is impacting on the organisation
• INTRODUCTION
• Environment Analysis of Tesco
• SWOT Analysis of Tesco
• CONCLUSION
• RECOMMANDATION
• REFERENCES

INTRODUCTION
Tesco is a multinational retail organisation based in UK. This British
organisation was founded in 1919 and is headquartered at Welwyn
Garden City Hertfordshire, England. This study includes analysis
of current position of Tesco in relation with its competitors. The
key competitors of Tesco are Marks and Spenser and Sainsbury’s.
These organisation are also multinational retail organisation are
based in UK.

ENVIRONMENT ANALYSIS OF TESCO
Environment analysis refers to identification and analysis of the
factors of internal and external environment of the organisation.
Internal environment refers to factors which exist inside
organisation and affect the organisation and on the other hand
external analysis refers to analysis of the factors which are not
part of organisation neither are inside the organisation but affect
the operations of organisation.

EXTERNAL ENVIRONMENT ANALYSIS
 External environment consist of two
types of environment which are
Macro Environment and Micro
Environment.
 Macro Environment of Tesco can be
analysed through the framework
which is known as PESTLE. This
provides information on following
factors related to Tesco-

CONT..
Political Factor
This includes effect of political factor and political environment
on the operation of Tesco. This includes what impact political
rules and regulation make on Tesco, impact of political ideologies
of different countries. Tesco being a multinational organization
have to consider impact of political environment of all the
countries in which it functions to determine its condition

CONT..
Economical Factor
Economic factor refers to economic condition of a country and its
impact on the operations of Tesco. These factors are
unemployment rate, cost of labour, and economic condition of
people and citizen of that country. For example in 2018 minimum
wage rate in UK increased to 4.4% and this cost Tesco millions of
pounds in UK.

CONT..
Social Factor
This factor does not consist any of regulations and rules but is
rather affected by the customers of the Tesco. This includes
customer buying trend. Taste and preference of the customers and
what customers prefer and want with their retail shopping affect
this factor. In relation with this fast delivery, effective and
attractive offers and discounts and goods return policy.

CONT..
Technological Factor
Some issues affected Tesco and its market position and Tesco lost
its trust and goodwill in the market. This trust and goodwill of
Tesco returned through its technological advancement. This is an
important factor not just for effective customer service and cost
effective operations.

CONT..
Legal Factor
This is one of the most important factor. This factor gets less
affected by Tesco and Tesco significantly affected through this
factor. This factor and legal environment of Tesco consist all those
elements which govern business and its functions

CONT..
Environmental Factor
This is one of the most important factor and many organisations
are facing immense pressure from various national and
international organisations to operate their organisations in an
environment friendly manner

CONT..
Competitive position of the Tesco can be determined through these
factors like Tesco need to ensure that its political factors are
favourable in all the countries. Economical factors are favourable
when Tesco earns high return on investment and its profit margin
is high and cost is lower.