Comprehensive SWOT Analysis of Tesco: Strategy & Brand Engagement

This case study presents a comprehensive SWOT analysis of Tesco, a global retailing powerhouse, focusing on its strengths, weaknesses, opportunities, and threats. The analysis delves into Tesco's retail excellence, customer service, and profitable supermarket formats. Strengths include significant cash reserves, diverse store formats catering to local needs, and technological advancements. Weaknesses involve the impact of external factors on subsidiaries and competitive pressures leading to price wars. Opportunities lie in strategic alliances, online shopping expansion, and private label market growth. Threats encompass economic recessions, labor costs, government regulations, and rising food prices. The analysis references various sources to support its evaluation of Tesco's strategic position and brand engagement.

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SWOT Analysis of Tesco
This SWOT analysis gives focus on the Tesco group. It is considered as one of the global
retailing powerhouses of the retail brands. The company offers food and non-food products
across the world. In this analysis, the main focus is given on the company's strength, weakness,
opportunities, and threats that will take into consideration the detail description of the business
strategy and brand engagement of the company.
Strength
Tesco is considered as one of the largest companies that have attained many awards for
its retail excellence. The company offers customer service and also overall effective services to
its customers. It has the most profitable supermarket and retail formats all overall the world. The
strength of the company is related to the significant cash reserves and a wide range of property in
its portfolio. It also offers a strong financial position to take into consideration all types of
economic cycles. Tesco has many store formats that induce customers to buy the products. Its
appeal to local and cultural need and also assist to offer a more specialized service experience.
The company has also given focus on the improvement of technology that has enhanced the
operations and also created greater cost-effectiveness and enhanced the service experience
(Alam, 2013).
Weaknesses

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It is evaluated that some of the company subsidiaries are not operating as there is major
effect of the external factors. Like the financial profit level of the company is affected at the
time of credit crisis and also has to rebound from the global event. The weakness of the company
is that there is a competition level that has led to the price war and also the company should have
given focus on the competitive advantage. Due to the less disposable income, the retailer
adjusted the inventory and also the selection process by not taking into consideration the high
cost of inventory (Peeroo, Samy and Jones, 2016).
Opportunities
There are various opportunities that are available for the strategic alliance. Tesco has an
opportunity to enhance the market by taking into consideration online shopping and also should
offer home delivery services to the more areas. In the private label market, there are many
opportunities that are prevailing. The emerging market gives many opportunities for the retail
formats and also the company gives many discounts so that the customer gets induced in an
effective manner (Samantara and Sharma, 2015).
Threats
The economic recessions and credit crunches will give threats to the market share and
profitability in the areas globally. It reduces the number and size of the purchases made by the
consumers. Labor threats have also considered by the company that enhances the wages and
benefits globally and add basic company cost and gives pressure on the pricing strategy. The
rules and regulations of the government are also giving pressure to the company. The food
prices are increasing day by day and also it has reduced the needs of the consumers and also how
much disposable income is required (Wood, Wrigley and Coe, 2016).

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References
Alam, J., 2013. An analytical case study on existing corporate communication strategies of tesco
plc, uk.
Peeroo, S., Samy, M. and Jones, B., 2016, September. Generating Customer Engagement and
Customer Enragement on Facebook Pages of Tesco and Walmart. In Conference on e-Business,
e-Services and e-Society (pp. 146-156). Springer International Publishing.
Samantara, R. and Sharma, N., 2015. Talent Management at Tesco: A Case Study. Parikalpana:
KIIT Journal of Management, 11(2), p.95.
Wood, S., Wrigley, N. and Coe, N.M., 2016. Capital discipline and financial market relations in
retail globalization: insights from the case of Tesco plc. Journal of Economic Geography, 17(1),
pp.31-57.

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