TESCO STRATEGIC ANALYSIS

Tesco Strategic Analysis



Table of Content

a) An analysis of the industry's current and future macro environment, clearly identifying the major change factors which are likely to affect the company's strategy3

Political Factors3

Economic Factors4

Social Factors4

Technological Factors4

b) Critically examine the company's current position within the competitive environment both in the UK and abroad including the strategy currently pursue5

Currently Pursued Strategies6

Product, brand and positioning Strategy6

Creative Strategy6

Communication Strategy & Testing7

Customer Relationship Strategy7

c) Critically assess the company's current resources and capabilities7

d) Critically evaluate the strategic options available to your chosen organisation, and please justify these10

Market Development Strategy11

Product Development: Diversification11

References12

Tesco Strategic Analysis

Introduction

The main purpose of this paper is to make an analysis on Tesco's industry analysis. The paper makes discussion on the current and future macro environment of Tesco, and the major factors that can affect Tesco's strategy. The paper also discusses Tesco's current position in the industry in UK and around the globe. Thus, this paper is a reflection of Tesco's current strategies and the strategic options which could be available to Tesco in order to gain competitive advantage.

Current and Future Macro Environment of Tesco

Tesco is a significant international retailer. As a global business, the company perceives itself as having a vital role to play in helping to minimize its environmental impacts. Although based in the United Kingdom, Tesco PLC has developed into an international grocery and general merchandising chain, employing 440,000 staff worldwide and with sales exceeding £59 billion (in the year ending February 2009) (Aaker, 2009). The macro environment of the retail industry to which Tesco belongs can be determined through the PEST Analysis and Ansoff model which is given below.

Political Factors

The main political factors associated with the retail market are as followed. The local authority support for the charity is declining continuously. There is a great potential of withdrawal preceding the changes in the political control. There is also lack of coordination in the charity agenda. The political factors have greatly influenced the regulation of charity (Aaker, 2009, p. 137).

Economic Factors

There are some economical factors which can affect the retail market of UK. These are the factors through which the purchasing power of the potential clients is affected. The economy has low inflation rate which is considered as the benefit and good sign for the companies. According to Porter (2009), the rate or inflation have decreased to 1.3%. Another good factor for the retail market is that the unemployment rate is very high and; therefore, the rate of spending is also high. This is a very good sign for any company who wants to start its business (Porter, 2009). It is calculated that the GDP of the country is also increasing at an accelerated rate and which is also increasing consumption level of customers.

Social Factors

In South London, the access of the Internet is growing day by day. Statistics show that almost 29.8 million households have access to the Internet. This ratio increases the trend of online buying and marketing, which could be helpful for the retail market in a sense that ...