This report provides a comprehensive analysis of Tesco's strategic expansion in the competitive UK supermarket sector. It begins with an executive summary highlighting the challenges posed by Aldi's growing popularity and Tesco's declining profit margins. The report includes a company background, an introduction outlining the study's purpose, and a detailed body section. The body utilizes SWOT and PEST analyses to evaluate Tesco's current situation and external environment, identifying strengths, weaknesses, opportunities, and threats. Micro-environmental factors such as suppliers, customers, competition, and community are also assessed. Furthermore, the report incorporates a five forces analysis to understand industry challenges and opportunities. The report concludes with recommendations for Tesco to open new cost-effective stores in untapped areas, focusing on simpler infrastructure and relevant product offerings to attract a broader customer base and regain market share. It suggests that Tesco's strategic focus should shift to address the rising demand for cheaper products and defend its physical presence by being more beneficial to the target market.