Tesco's Business Strategy: SWOT, PESTLE, and Market Analysis Report

This report offers a detailed analysis of Tesco, a leading UK supermarket chain, exploring its internal and external factors. The report utilizes SWOT and PESTLE analysis to evaluate Tesco's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, and technological factors affecting its business. The SWOT analysis highlights Tesco's strengths, such as its high revenues and the use of technology like RFID and online shopping. The weaknesses include low-profit margins and inadequate market research in certain areas. The opportunities include strategic partnerships, while the threats involve competition from rivals like Walmart and the impact of Brexit. The PESTLE analysis examines how political factors, such as Brexit and tax rates, impact Tesco's operations, as well as economic factors like prices and demand. The social factors include changing consumer preferences towards one-stop and bulk shopping, leading Tesco to introduce organic products. The technological aspects cover the introduction of home deliveries and self-service checkouts, and investments in reducing its carbon footprint. References to books and journals are included for further information.

Introduction to Business studies
portfolio

Internal and external factors of Tesco
 Internal factors
 SWOT
 It is considered as a technique that can applied to the Tesco can be used to determine the level of the
business with the success benchmarks as well as growth trajectories as it standards for the strategies
opportunities, weakness and threats.
 Strength
 It is one of the leading grocery retailer as it has the higher revenues and sales as compare to the other
supermarket within the Great Britain. It has about 28% profit as per the annual reports of 2018.
 Tesco able to uses the Technology within the way that it can increase their customers experiences as Tesco
introduced RFID enables barcode system that able to count the goods automatically, and they also use the
apps that have the mobile payment app. Tesco also launches their own online shopping app within the year
2021.
 Weakness
 Due to the low cost strategy of Tesco it leads to the reduced profit margins.
 As according to the experts Tesco are not carry out the enough market research as some stores of the Tesco
are not performing well within certain nations.

CONT..
 Opportunities
 Tesco develops the strategic partnership with the brands which are reputed as they provides the
excellent opportunity for the Tesco. It allows Tesco to provides more goods as well as attract more
consumers.
 Threats
 Tesco faces the negative consequences of the Brexit Referendum as Britain was not the part of the
European Union s that the Tesco faces the higher prices of the goods and reduces the customer
base .
 With the rise of the WalMart, Aldi and Carrefour, they are consider as the biggest competitors of
the market as this threatened the Tesco firm.

PEST ANLASIS OF TESCO
 To get the better understanding of the external factors that are impacting within the firm Tesco
needs to focus on the Pestle analysis.
 Political factors – Tesco is a retaining firm as it operates all over the world so political factors
impact a lot within the performance of the Tesco. Such as impact of the Brexit ,various Tax rates
 as well as ongoing finial stability within a nation impacts a lot.
 Economical factors-These are the kinds of the factors that are mostly focuses on the profits ,prices,
demands and many others. The firm must be aware of the of any changes that affects the financial
condition of the nation.

CONT..
 Social factors -Over the time changes there are lots of changes within the trends that represents
that consumers within the UK shifted towards the one stop shopping as well as bulk shopping.
 Thus, it increased the type of the goods as well as services that are demanded through costumers as
well as mostly impacted by their beliefs as well as attitudes. Tesco introduces the organic products
by adapting the changes and overview the choices of the customers.
 Technological factors- Technology is developed day by day, Tesco also introduces their
introduction of the home deliveries option in online shopping and also introduced the self-service
check out points as it is convenient for the costumers.
 Firm also invested within the amount of the energy that can decreased the carbon footprint.

REFERENCES
Books and journals
Ma, N., 2020. Strategic market analysis for a privacy solutions company (Doctoral dissertation,
California State University, Northridge).
Lopez, L., 2020. Development of Marketing Plan for A Non-Profit Serving the Disabled
Community (Doctoral dissertation, California State University, Northridge).

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