TESCO

Tesco



Tesco

Introduction

Tesco is an exceptional business in United Kingdom. They are clearly a market leader in the retail sales of food which are more attractive to the customer, the wider range of formats, systems and processes and the best customer loyalty programs which make them market leaders. Tesco is a multinational chain of outlets for retail with its headquarters in the United Kingdom. In 2008, Tesco became the fourth largest retailer in the world, displacing the fifth largest distributor Metro AG, the first movement of positions among the top five companies in the sector since 2003. Initially, company was a UK focused grocery retailer specializing in food and drinks, now diversified into areas such as clothing, electronics, financial services, selling and renting DVDs, compact discs, digital downloads, Internet services, telecommunications, medical and dental insurance software.

However in 2011, they added a new area in their shop of beauty salons. More than 15 products and services that comprise of insurance, loans, savings, credit cards etc. Tesco Personal Finance has over 4 million customers. Geographically, sales break down: United Kingdom (80.3%), Europe (11%) and Asia (8.7%). Tesco is the UK private company with the largest number of employees and offers their staff the best wages and rewards; in addition to this they show, their leadership power in the fight against climate change. They also generate excellent financial results with a higher density of sales, profit margin and return on capital than any other company in the sector (www.portal.euromonitor).

Situational Analysis

To know the current situation of Tesco, it is vital to perform SWOT analysis of that organization. SWOT analysis of an organization can provide a clear picture of an organization, and it can aid in erasing any ambiguity to predict the current condition of the organization. SWOT Analysis

Strengths

Weaknesses

Huge capacity for parking.

High level of security.

Latest technology.

Good environment.

Market share of Tesco is increasing

High return on investment

Online presence

Strong brand image

Focus on product affordability.

Extensive know-how of retail industry

Skilled top management

New player.

Risk of entering with high investment.

Loosing existing customers to the competitors

Recalling of product due to low quality

Opportunities

Threats

No other competitors in the area.

Huge market available.

Prospects of international growth

Online retail channel

Differentiate effectively due to the strong portfolio

Fall of overseas return

Threat of new competitors such as Wal-Mart and others

International expansion

Worldwide recession

Intense competition in domestic market

Detraction created by small retailers

Demographic factors and change in consumer shopping preferences leading to decline in customer traffic at hypermarkets

PESTEL Analysis

Political Factors

Tesco is functioning considerably and providing services to all the stores all around the world. Being an innately community and labour concentrated sector, Tesco realizes that selling has a huge impact on people and the jobs factors. It regularly hires students, aged and disabled people at lower wages, and in an industry with characteristically soaring staff revenue, these employees proffer a higher level of allegiance and consequently symbolize sought-after workforce.

Economic Factors

For Tesco, economic aspects are of apprehension, as they are probable to pressurize costs, prices, profits and demands. One of the most significant features on the economy is excessive redundancy ...