Tesco's Strategic Analysis: Market Trends and Performance

This presentation provides a comprehensive analysis of the supermarket sector, focusing on Tesco's performance and strategic positioning. It begins with an introduction to the sector and outlines current trends such as digital food shoppers, transparency in food safety, sustainability, and private labels. The presentation then examines Tesco's performance since October 2015, highlighting its evolution as a global brand. It compares Tesco's financial performance with those of Aldi and Lidl, providing insights into their market strategies and growth. A SWOT analysis of Tesco is presented, identifying its strengths, weaknesses, opportunities, and threats. Finally, the presentation offers recommendations for Tesco to improve its market share and profitability, including cost leadership, product innovation, supply chain management, and corporate social responsibility. The conclusion summarizes the key findings and emphasizes the importance of digitalization and quality in the current market. References used in the presentation are also provided.

SUPERMARKET
SECTOR
TESCO

TABLE OF CONTENTS
• Introduction
• Current Trends In Supermarket Sector
• Tesco Performance Since October, 2015
• Financial Performance Of Aldi And Lidl
• Swot Analysis Of Tesco
• Recommendations For Tesco

INTRODUCTION
• The supermarket sector is having the largest food retail channel in the world.
• The largest retailer stores are generally operated by self-service basis, fresh
product, selling groceries and other food products.
• Tesco is multinational organization offering groceries and other retailer
products.
• This presentation also evaluate the SWOT analysis of Tesco with respective
recommendations.

CURRENT TRENDS IN SUPERMARKET SECTOR
There are different trends that supermarket sector is having as the retailer are
encouraging their respective customers for long time.
• Digital food shopper: the digital engagement of customer are being rapidly
increasing, and they also prefer fresh food that are quick access and better
experience.
• Transparency in food safety: In the current supermarket there are variety of
healthy, fresh food products option that are easily available at all the grocery stores.
• Focus on sustainability: the companies in supermarket sector are concerned about
the sustainability of the brand they are using.
• Private label: In the current market the private companies are having massive
growth in the supermarket. The people are avoiding the cheaper and non-branded
product.

TESCO PERFORMANCE SINCE OCTOBER, 2015
• Tesco is an international brand provides grocery and retailer
products all over in the world.
• The company was established in 1919 by Jack Cohen in
London.
• Further years of Tesco comes with positive revenue figures
as 2019 the company earned 63.91b.
• The company has around 43.90b, total value of assets and in
the past year of 2020, Tesco has fewer assets because the
pandemic situation affects the company from different
aspects.

FINANCIAL PERFORMANCE OF ALDI AND LIDL
ALDI
• Aldi is one of the largest supermarket chain of over huge number of stores in 20 countries. The company has
entered the market in the 1990s.
• The market share rapidly increased since 2015. The Aldi is going to be fourth largest super marketer in Britain.
• Company is regularly trying to increase its stores and trying to have approx. 1200 stores in 2025.
LIDL
• On the other hand Lidl is also international supermarket company operating more than 12000 stores
internationally.
• The company has opened its store in 1973 and with regular growth company has opened 33 stores.
• Since from 2015 the revenue has grown with approx. 9%, the company also opened its first store in Lithuania
during 2016.

SWOT ANALYSIS OF TESCO
This analysis is a process of important planning method that assist to identify
the strength, weakness, opportunities and threats related to business.
• Strength: The company faced a huge amount of loss in the year of 2015
but after that managers and leaders work hard to overcome and made
remarkable recovery.
• Weakness: Tesco is having main competitors like Sainsbury, Asda and
Morrison. They jointly own 66 percentage of share in the market.
• Opportunities: The company can grow more with online sales of grocery
products as people are more concern about their health and safety.
• Threats: Tesco has influenced by pandemic situation of COVID-19, the
company has moved to online sale services when different companies are
failed.

RECOMMENDATIONS FOR TESCO
• To grow more in the international market Tesco leaders can make use of cost leadership style that help company
to gain the market share within limited time frame. The customer in the market are more attracted towards those
products which are offered at lower price and same level of satisfaction with its competitors.
• Tesco is operating in wider area so to provide high quality in each product with minimal price is not possible.
• As Tesco is using market penetration in sale its existing product in the existing market so, by making innovative
products launching in the existing and new market profitability will increase.
• Tesco is not having a clear information and data related to its suppliers so these things should be managed to gain
benefit. Tesco also should follow corporative social responsibilities to make a favourable image in the mind of its
customers and well as government.
• Tesco should have control over supply and demand of the products internationally. The company should also can
provide fitness products because people are now more preferring those products which are healthy.

CONCLUSION
• This presentation concludes that currently
digitalization is being very necessary to sustain in
the market.
• The people are more preferring quality product
rather to consume cheaper product with less
quality.
• The Tesco is having continuously performing great
and competing in international market.

REFERENCES
• das Nair, R., 2018. The internationalisation of supermarkets and the nature
of competitive rivalry in retailing in southern Africa. Development
Southern Africa. 35(3). pp.315-333.
• Ahmed, S.S., 2017. Trends of large scale retailing in
Bangladesh. ANGLISTICUM. Journal of the Association-Institute for
English Language and American Studies. 6(6). pp.30-34.
• Dey, M.M. And et. al., 2017. Market trends for seafood products in the
USA: Implication for Southern aquaculture products. Aquaculture
Economics & Management. 21(1). pp.25-43.