Report on Tesco's Business Strategy: SWOT, VRIO & Internal Analysis

This report provides a comprehensive analysis of Tesco's business strategy, utilizing SWOT and VRIO frameworks to evaluate the company's strengths, weaknesses, opportunities, and threats, as well as its resources and capabilities. The analysis identifies Tesco's market share and low price strategy as key strengths, while highlighting its high reliance on the UK market and low investment in R&D as weaknesses. Opportunities such as technological growth and high unemployment rates are considered alongside threats like competition and economic recession. The VRIO analysis assesses resources like brand recognition, product portfolio, innovation capabilities, and human resources, determining their impact on competitive advantage. The report concludes that Tesco's external environment is highly competitive, and its strategies are primarily defensive, emphasizing the importance of boosting productivity and seizing market opportunities for sustainable development and competitive advantage.

Business Strategy

Table of content
 INTRODUCTION
 SWOT Analysis
 VRIO Analysis
 internal environmental factors with their strength and weakness

INTRODUCTION
Strategy is the term that defines the actions that are taken in order to support
the plans of organisations for attaining their goals and objectives. In relation to this
business strategy is refereed as the long term action plan in order to attain the desired
organisational output.

SWOT Analysis
Strengths
 Market share
 Low price strategy

Weaknesses
 High reliance on UK market
 Low investment in R&D

Opportunities
 Growth of technology
 High Unemployment rate

Threats
 Competition
 Economic Recession

VRIO Analysis
Resources Valuable Rare Inimitable Organisable Competitive
advantage
Brand
recognition YES YES YES YES
Long term
competitive
advantage
Product
portfolio YES YES NO NO Competitive
advantage
Innovation
Capabilities YES YES NO NO
Temporary
competitive
advantage
Human
Resources YES NO NO NO Competitive
parity

Brand recognition
It is the highly competitive and sustainable capability of the Tesco. This resource of
the Tesco is valuable, rare, inimitable and organisable. Tesco is the leading
organisation with outstanding brand recognition in UK and other countries in which
company operate.

Product portfolio
The product portfolio of the Tesco is valuable and rare providing the company with
competitive advantage as this helps the company in gaining customers and reduces
the threat of substitutes.

Innovation capabilities
The resource of Tesco is valuable and rare but can be imitated and is not organised as
per the organisation. This factor of Tesco also brings competitive advantage but is
required to be more effective in order to create the sustainable competitive advantage.

Human Resources
The Tesco value their colleagues, shareholders and other human resource highly. As
they are the value proposition of Tesco but are the resource of competitive parity.

Internal environmental factors with their
strength and weakness
There is being seen that some of the major internal environmental factors which are
being analysed in the organisation according to their strength and weakness so as to
manage and resolve all the threats and issues.

Conclusion
From the above report it is concluded that the external environment of Tesco
is full of competition and also the strategies used by Tesco to mitigate the external
threats are highly defensive. Its is concluded d that Tesco strategy to boost its
productivity and to grab market opportunities are useful in sustainable development
also help in gaining competitive advantage.

References
 Seifzadeh, P. and Rowe, W.G., 2019. The role of corporate controls and business-level strategy in
business unit performance. Journal of Strategy and Management.
 Teixeira, N.M and et. al., 2019. Business Strategy and Financial Performance. In Handbook of
Research on Entrepreneurship, Innovation, and Internationalization (pp. 1-49). IGI Global.
 Um, J and et. al., 2018. Aligning product variety with supply chain and business
strategy. International Journal of Productivity and Performance Management.
 Yuan, Y and et. al ., 2020. Business strategy and corporate social responsibility. Journal of
Business Ethics. 162(2). pp.359-377.