Tesco Supermarket Sector Analysis: Trends, SWOT, and Growth

This report provides a comprehensive analysis of Tesco, a leading supermarket chain. It begins by examining current trends in the supermarket sector, including shop-and-eat concepts, environmentally friendly practices, home delivery, digital physical stores, and advancements in e-commerce, supply chain technology, and customer experience. The report then assesses Tesco's performance from 2015 to 2020, noting its market share and financial figures. A detailed SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Tesco is presented, followed by a discussion of growth opportunities and recommendations. The report emphasizes the importance of social media engagement, the implementation of technologies like RFID and IoT, and a commitment to environmental sustainability. The conclusion highlights the value of understanding these aspects of the business world, especially for applying learnings in real-time business contexts, and references relevant sources to support the analysis.

TESCO Challenge

Current trends in supermarket
sector
 There is an introduction of the new concept of shop and eat at the stores
itself
 There is a great innovation and creativity in new ideas in product discovery
 Sense of environment friendly production and business are in good trend in
supermarket sector
 Home Delivery idea is being introduced in coming trends
 Idea of digital physical stores are also introduced for better servicing to the
customers
 Positive transformation of E-commerce and social commerce as well
 Technology used in supply chain, traceability and data management are
new and advanced for better operations and management in an
organization
 There is an enhancement and improvement in overall customer experience
in supermarket sector (Kolokotroni, Mylona, Evans and Liddiard, 2019)

TESCO's performance from 2015
to 2020
 Between January 2015 and May 2020, TESCO has lost of
approximately 2.1 percent of its market share
 Now it stands at 26.9 percent of it's market share
 In its 2019 to 2020 fiscal year, TESCO’s yearly revenue
measured to approximately 53 billion British pounds in the
United Kingdom and the Republic of Ireland
 This was an addition of almost about 1.3 billion pounds
compared to the previous fiscal year
 The firm's income in the UK and the return on investment raise
by over 360 million pounds and came to 2.2 billion in 2019 to
2020 (Jonah, 2018)

SWOT analysis of TESCO
SWOT analysis can be defined as the internal
factors of the business which directly or indirectly
affects the operations, functioning and working of
an organization either in a positive manner or in a
negative manner. The following discussions are
based on the SWOT analysis of TESCO, which is
one of the leading international supermarket
company based in UK and founded in 1919
(ZHAO, ZHAN, Ying and ZHU, 2018). Strengths,
weaknesses, opportunities and threats of TESCO
are as follows:

Strengths
 It has consistently strong financial
performance
 They have good key acquisitions and
strategic alliances
 It mainly focuses on technology by
differentiating them for advanced and
upgrades
 It has a good innovation in the range of
products and servicing to the customers

Weaknesses
 They are facing the job and cost cutting
problem in an organization
 They are facing the frequent controversies
undermining the brand
 They are facing the cutting down of an
overseas operations in the company

Opportunities
 They can take over multichannel retailing due
to the popularity of it in the market place
 They can bring up the artificial intelligence in
their operations
 They can introduce the augmented reality for
customer engagement

Threats
 Increment of competition in the retail industry
 There is an increase of rapid changes in
expectations of customers
 There are the threats of cyber security as
well

Growth opportunities and
recommendations
There is a growth opportunity for TESCO in social ,
technological and environmental factor. It is
recommended that company must get more involved
in social media sites for better communication with
people and their customers for proper and immediate
feedback from them. It must introduce the RFID
technology, internet of things and mobile payments for
better customer experience and operational
optimization. They should reduce the dependency on
plastic, initiate for sustainable sourcing and commit to
address the challenges in environment (Rosnizam, Kee,
Akhir and Alajmi, 2020).

CONCLUSION
It is concluded that analysing the supermarket
sector with it's current trends in terms of TESCO
can help a person in gaining better knowledge
about the business world because it contains the
information about performance of TESCO, SWOT
analysis, growth opportunities and
recommendations in context of TESCO.
Therefore, it is important to examine all such
areas in order to apply such learnings and
knowledge in real time businesses.

References
 Jonah, U.I., 2018. The Influence of Transaction Costs on the
Business Performances of Tesco Supermarket. International
Journal of Business and Social Science, 9(5).
 Kolokotroni, M., Mylona, Z., Evans, J. and Liddiard, R., 2019.
Supermarket energy use in the UK. Energy Procedia, 161,
pp.325-332.
 Rosnizam, M.R.A.B., Kee, D.M.H., Akhir, M.E.H.B.M. and
Alajmi, A.M., 2020. Market Opportunities and Challenges: A
Case Study of Tesco. Journal of the Community Development
in Asia. 3(2). pp.18-27.
 ZHAO, J.K., ZHAN, Q.N., Ying, L.O.N.G. and ZHU, Y.Z.,
2018. Research on the Development of Little Red Book—By
Adopting SWOT Analysis. DEStech Transactions on Social
Science, Education and Human Science, (amse).