STRATEGIC ANALYSIS

Strategic Analysis



Strategic Analysis

Formulating an International Marketing Strategy

This report outlines an international marketing strategy for its market entry into Sweden with a range of baby wear. It would be useful to say that have already been trading in Sweden for x many number of years and already had y number of stores operating in the country.

The SWOT and PESTAL analysis show that Tesco currently has the resource capabilities to successfully enter the baby wear market and are capable of implementing a market development strategy building on the success of its Tesco stores in the country. The report recommends that Tesco target the high-end market segment with a differentiation strategy.

Introduction

This report will assist in the understanding and the formulation of an international marketing strategy for Tesco Plc. The report will use PESTLE and SWOT analysis to provide an insight into Tesco's current market situation and will provide a valuable source of help in enabling the management team to make the correct strategic choices in terms of corporate and international strategy relating to the launch of designer baby wear (infant & toddler clothes) into Northern Europe (Namely, Sweden). The report will outline how Tesco intends to make such market diversity and also manage its corporate portfolio. The Ansoff Matrix will be used to consider market entry models. The final part of this report will provide an activity plan for Tesco along with a profit and loss account. Measurements and control with contingency plans will also be discussed.

Company Profile

Tesco runs more than 2,300 supermarkets, hypermarkets, and convenience stores in the UK (where it is the market leader in food retail), Ireland, Central Europe, and Asia. Its operations include convenience and gasoline retailing (Tesco Express), small urban stores (Tesco Metro), hypermarkets (Tesco Extra), and financial services through Tesco Personal Finance. A global leader in online grocery sales, it owns a 35% stake in US grocery chain Safeway's GroceryWorks. It is the leading online grocery store and it is now expanding its business with a TV channel and a "retail based education institution.

SWOT and PESTLE Analysis of Tesco Plc

A Swot analysis giving an overview of the key internal and external factors pertinent to Tesco, was undertaken, appendix 1, and from this key strengths, weaknesses, opportunities and threats were noted. These were now further refined

Strengths.

1. Brand awareness

2.Strong financial situation

Weaknesses

1. Lack of local knowledge

2. 'Foreign Brand

Opportunities

1. Brand awareness growing globally

2. Innovation and alliances

SO

WO

Threats

1.Existing competition

2.High Competition for customers and resources

ST

WT

In considering using strengths to make the most of opportunities (SO)

Tesco has a strong home brand which is becoming known throughout Europe due to existing expansion programme

Tesco could build on the strength of it's brand to join with a leading Swedish manufacturer of children's clothing and jointly there could be promotional opportunities for both Tesco and the Swedish company concerned.

Tesco is in very good financial health, so could very well afford to pay for expansion plans incorporating marketing programmes.

In considering how opportunities could be taken to address the weaknesses, provided that SO was achieved

Tesco's growing brand awareness throughout ...