BUSINESS

Five Forces, Pest and Competitor Analysis of Retail Food Industry of UK

Porter Five Forces Model, Pest, Competitor Analysis on UK Food Retailing Sector

Introduction

The main objective of this report is to analyze the five forces strategy of Michal Porter, Pest analyses and competitor analyzes of Tesco the largest food retailer of the UK industry.

Being the largest food retailer Tesco not only operates from the UK but has its stores across the world with more than 2300 outlets and 326000 employees, further it also provides its services to customer from all around the world through it online subsidiary Tesco.com.

The business of Tesco is not only based on food items rather it consists of wide range of products like clothes and other non food items that are available to the customer form large superstores, its own outlets and other retailers of the country (Data Monitor, 2004).

Except of selling products in the market the company also provides financial services to the people of UK through Tesco Personal Finance, and it also own several gas station situated its outlet that provide excellent quality of Gas to the people visiting outlets at the subsidies rate Data (Monitor, 2004).

Porter Five Forces Analysis of Tesco



Bargaining power of Suppliers

The bargaining power of Tesco suppliers is very low as compare to its competitors and the prime reason for this is that being the largest retailer Tesco is working with several suppliers therefore due to the fear of losing business opportunity the suppliers are forced to deal on the policies of the Tesco (Recklies, D, 2001),

Bargaining Power of Customers

The bargaining power of Tesco customer is relatively high as due to availability of substitutes of product and services in the market, therefore Tesco charge subsidiary rates for its product as the company does not want to lose it customer range.

Threats of Entrants

Being ...