TESCO ANALYSIS

Tesco Analysis

Executive Summary

This paper explores the Tesco current strength and weaknesses in a holistic context. A brief account of strategic direction is shown through the organization's history and business focus. Further, the paper provides the macro and micro environmental forces that have a significant impact on the strategic choices of the company. The issues faced by the company are discussed using the Porters five forces framework and SWOT analysis. Finally, the paper concludes with the options the company may consider in dealing with its strategic issues and challenges.Analysis of Tesco

Introduction

Tesco is the largest food retailers in the UK, an estimated 15.5% share of the total market. Tesco is also designed to increase their share of non-market. The two most important factors for the success of Tesco in listening are to customers and learning from mistakes. Offering quality products at low prices and put local people first in the way they conduct their business as their main strategy. Tesco was based in 1919 and commenced its first shop in Edgware, London, UK in 1929; although, over the decades it has developed to become the market leader inside the UK food retail segment (Andrews, 2008, 67-110).

Strengths

Tesco is the third biggest food shop retail business in the world, functioning over 4,331 shops mainly inside the USA, Europe and Asia. The business apprehended 30.7% share of the UK food shop retail market in 2010. A powerful financial performance has been shown by the business over the years, which underscores its strategic capabilities. According to research, Tesco is a £ 54billion revenue business notes a boost of 14.9% when in evaluation to 2008. The foremost scheme that has been taken up by the business is the product and services customization in agreement with the market demands.

Tesco power in the retail grocery effortlessly provides it to compete with businesses for example Sainsbury, ASDA and Marks & Spencer. This has directed to its emblem and economic power to become their strengths. This directed to allotments of stores under building in the homeland and overseas, premier to geographical force. The introduction of Tesco Express and Tesco Metro took power in a display of flexibility (Brady, 2007, 63-97).

Tesco's Pricing Strategies

The core objective of Tesco is to become the largest international retailer in the U.K and global market. In addition, Tesco intends to be a successful international retailer and in striving to meet these objectives Tesco have implemented different pricing strategies on different ranges they sell to meet these objectives also taking into account different market conditions. Below are the pricing strategies of Tesco: The current recession has provided a new challenge for Tesco to produce goods at the lowest prices and to still maintain quality. There are almost 500 brands launched by Tesco; these brands are classified as the “Discount Brands”. Increase competition in the market from Adli, Lidi and others Tesco introduced these discount brands at low prices to both compete and to ensure it continue to grow its UK ...