Tesco SWOT Analysis: Evaluating Strengths, Weaknesses, Opportunities

This report presents a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Tesco, a major supermarket chain. The analysis evaluates both internal and external factors impacting the company. Strengths include significant financial reserves and a large property portfolio, while weaknesses involve reliance on the UK and European markets. Opportunities are identified in online shopping expansion and home delivery services. Threats include unfavorable changes in tax rates, rapid technological changes, and economic factors such as inflation and interest rates. The report examines the impact of political, economic, social, and technological factors on Tesco's business operations, offering insights into its competitive position and strategic challenges. The analysis covers various aspects, including government policies, consumer behavior, economic growth, and technological advancements. The report also mentions the effect of inflation, interest rates, and changes in exchange rates on the company's sales and revenue. This comprehensive SWOT analysis aims to provide a clear understanding of Tesco's current market position and potential future strategies.

Internal and External factors
Adrian Guset
Opportunities
Tesco has good opportunity to expand business
through online shopping or also provide home
delivery services so that to attract large audience.
Strengths
As Tesco has significant cash reserves and their
portfolio it has huge range of property which is yet
undeveloped. It make the brand financially strong so
that they can easily survive in all type of economic
cycles (Kaya, 2019).
Weaknesses
The respective supermarket is totally depends on
Europe and UK for their sales and it is not
interested to spent resource or time on
developing various other market location where
the company operate (Melkegna, 2021).
Threats
Threat of strict laws and provisions in context to salaries
& benefits , as it further put pressure on pricing
strategies of Tesco (Niranjanamurthy, 2019).
Technological
It includes automation, R& d activity,
technological awareness, innovation
(Rezayian, 2019).
Social
It involves various factor related to population growth, career
attitude, health consciousness, cultural behaviour, lifestyle
attitudes, age distribution etc. (Portalone, 2019)
Economical
It covers factors such as economic growth,
inflation rate, exchange rate, disposable income,
rate of unemployment etc.
Political
It includes various factors related to corruption,
government policy, labour laws, tax policies, trade
restrictions etc. .
Tesco is large supermarket having so many stores in different locations of
United kingdom.

Strength and weaknesses of Tesco in context of
external factors
Strengths
Positive environmental regulations as well
as availability of workers are their positive
point.
Weaknesses
rapid change in technology and
unfavourable change in tax rate.
Political factor
Various elements are included in it such as government policies,
corruption, political stability, labour laws, corruption, trade restrictions
etc. These factors affect the business both in negative or positive
manner (Foss, and Saebi, 2018).
Economical factor
It is concerned to various terms such interest rate ,
disposable income, exchange rate, inflation rate,
unemployment rate, economic growth etc. Hii,and Ko,
2019).
Strengths
health consciousness and increment in the
population growth rate.
Strengths
Unfavourable change in attitudes of society
and increase inflation rate tends to reduce the
purchasing power of employees which affects
the business negatively.
Economical factor
The factors that are included under this , make positive as
well as negative impact over business. Few of these are
related to age distribution, health consciousness, cultural
barrier, population growth rate, lifestyle attitudes etc
Inigo, Albareda, and Ritala, 2017).
Strengths
effective change in the exchange rate and
economic growth leads to increase chances
of business expansion in different foreign
countries.
Strengths
High rate of inflation and high interest rate also affects
sales and revenue of business in negative manner.