Tesco SWOT Analysis 2015 2017

Tesco SWOT abbreviation 2015 2017 Tesco plc was the UKs elucidate retailer in 2013 (retail Economics, 2014) and maintains a presence in 12 countries in Europe and Asia (Tesco, 2014). To hold out its position and build profitability, Tesco must assess its strengths, weaknesses, opportunities and threats (SWOT). Strengths and weaknesses focus on internal factors affecting a connection in contrast, opportunities and threats identify external issues (Collins, 2010). Thus, it is important to carry out a SWOT compendium to tell how the company is performing in the market (Kotler et al., 2013).Strengths Tesco is a powerful retail brand globosely, in the top 100 of the worlds most measured brands, slightly below Ikea and nearly above eBay (Brand Finance, 2014). It is known as a company that offers value for money, convenience, a vast range of products, and locally-sensitive management (Wood and McCarthy, 2014). Worldwide, Tesco has 6,784 stores, an increase of 433 stores since 20 12, despite the disposal of their US venture, Fresh Easy (Tesco, 2012, 2014). Tesco has utilised innovative business methods in its rise, including the creation of stores like Tesco Metro and Tesco Express, which argon small stores in local neighbourhoods to make shopping more convenient for the customers (Schiraldi, Smith and Takahashi, 2012). Other strengths in their global operations include online shopping, joint ventures, much(prenominal) as in China, and local recruitment, including in major(postnominal) management positions (Koen, Bertels and Elsum, 2011). Because of their size and facilities, Tesco sens buy in bulk, benefiting from economies of scale (Blythman, 2012). This permits the company to lower prices to keep prices captivating and be competitive with UK retailers such as Asda or Sainsburys. Additionally, by creating loyalty packages such as the Clubcard, they prevent customers, creating long-term relationships (Felgate, Fearne and Di Falco, 2011).Weaknesses Te sco has grown to be a very big company with a very wide range of products, diversified into food, books, clothing, furniture, insurance, petrol, and financial services. This model has its weaknesses. Tescos profit has been impacted by bad debt from credit card game and high levels of household insurance claims (Ruddick, 2014). Another issue is Tescos lack of experience in some markets that it intends to enter, such as its own brand smartphones and tablets (Wood and Gibbs, 2014). Finally, Tesco needs to invest a lot of cash in newfound web technologies and IT, as well as store refurbishment, diverting cash from price reduction strategies (Ruddick, 2014). This is promising to have an adverse effect on sales (Bunn and Ellis, 2012).Opportunities There atomic number 18 many opportunities for Tesco, including expansion into markets such as digital entertainment, through their 80% investment in Blinkbox (Hall, 2011). The move by Tesco to offer own-brand tablets and smartphones cigarett e intersect with this investment, particularly in foreign markets such as Malaysia, South Korea, Thailand, and China (Piercy, Cravens and Lane, 2010). Online shopping can offer greater flexibility to customers who are leading busy family lives or have mobility issues Tesco is trying to contact the needs of the customers by expanding operations in this sector (Ma, Ding and Hong, 2010). The ongoing effects of the recession, where families and individuals whitethorn be struggling financially, or too busy working to cook (Thompson et al., 2012), can be accommodated through wider value and Tescos Finest branding. In addition, further overseas expansion could occur in markets such as Australia, where the grocery retail market faces relatively limited competition yet is fiercely price-sensitive (Clarke, 2012).Threats Tesco is confronted by many threats in the market. Their flowing position as number one in the UK grocery retail sector means that they are the target of consistent competi tion from Sainsburys, Asda, Morrisons, and, increasingly, Lidl and Aldi (Stevenson, 2014). One threat that Tesco continues to resist is the takeover of Asda by Wal-Mart. Branding of stores as Asda Wal-Mart has been increasing in the UK, demonstrating a weakening in the consumer disdain for Wal-Mart. The ninth most-valued brand in the world, Wal-Mart is Tescos largest global competitor and therefore has the necessary skills, resources, experience and funds to cause Tesco problems (Brand Finance, 2014). The effect of town planning and consumer bigotry for out-of-town stores, as well as concern for the livelihood of small shops, can also exist Tescos expansion plans (Stevenson, 2014).Conclusion SWOT analysis allows marketers to identify risks in their environment. Once risks are evaluated, measures can select to mitigate against the adverse effects of market changes, or take advantage of openings (Kotler et al., 2013). Although a retailer may still face enormous challenges, such as Tesco is presently experiencing (Ruddick, 2014), developing flexibility enables companies to structure plans to optimise success, or avoid entering into projects in which failure is a significant possibility. Strengths may be spare to opportunities in the market, so that strategies are enhanced and clear objectives set (Kotler et al., 2013).Through consistent planning and economic awareness, Tesco is well placed to secure its future, as its diversified retail strategy is likely to accommodate increasing consumer creed on online shopping, digital products and services, discount grocery services.BibliographyBrand Finance (2014). Global 500 2014 The worlds most expensive brands. Available at http//brandirectory.com/league_tables/table/global-500-2014 accessed 1 September 2014. Blythman, J. (2012). Shopped The shocking power of British supermarkets. London HarperCollins. Bunn, P. and Ellis, C. (2012). Examining the conduct of individual UK consumer prices. The Economic Journal, 122( 558), F35-F55.Clarke, I. (2012). Consumer satisfaction with local retail diversity in the UK Effects of supermarket access, brand sorting and social deprivation. Doctoral dissertation, Department of market, Faculty of Business and Economics, Monash University, Australia. Collins, R. (2010). A graphical method for exploring the business environment. Oxford University operative Paper 956.Felgate, M., Fearne, A. and Di Falco, S. (2011). Analysing the impact of supermarket promotions A case study using Tesco Clubcard data in the UK. Kent Business School. working(a) Paper 234. Hall, J. (2011). Tesco to offer video-on-demand services. Daily Telegraph, 21st April 2011.Koen, P.A., Bertels, H.M. and Elsum, I.R. (2011). The three faces of business model innovation challenges for established firms. Research-Technology Management, 54(3), 52-59. Kotler, P., Armstrong, G., Harris, L.C. and Piercy, N.F. (2013). Principles of market (6th edn). Harlow Pearson.Ma, Y., Ding, J. and Hong, W. (2010 ). Delivering customer value based on service process The example of Tesco.com. International Business Research, 3(2), 131.Piercy, N.F., Cravens, D.W. and Lane, N. (2010). Marketing out of the recession Recovery is coming, but things will never be the same again. The Marketing Review, 10(1), 3-23.Retail Economics (2014). Top 10 UK retailers 2013. Available at http//www.retaileconomics.co.uk/top-10-retailers/ accessed 1 September 2014. Ruddick, G. (2014). Tescos new capitulum executive handed 700m war chest. Daily Telegraph, twenty-ninth August 2014.Schiraldi, P., Smith, H. and Takahashi, Y. (2012). Estimating a dynamic game of spacial competition The case of the UK supermarket industry. LSE Working Paper. Stevenson, T. (2014). Tesco share slide has investors catching a falling knife. Daily Telegraph, 29th August 2014. Tesco plc (2012). Preliminary results 2011/12. Cheshunt Tesco plc. Tesco plc (2014). Annual report 2014. Cheshunt Tesco plc.Thompson, C., Clarke, G., Clarke, M. and Stillwell, J. (2012). Modelling the future opportunities for deep discount food retail in the UK. The International Review of Retail, Distribution and Consumer Research, 22(2), 143-170.Wood, S. and McCarthy, D. (2014). The UK food retail race for space and market volume A contemporary review. The International Review of Retail, Distribution and Consumer Research, 24(2), 121-144. Wood, Z. and Gibbs, S. (2014). Tesco to launch own brand smart phone. The Guardian, seventh May 2014.Other Essays on TescoOther essays available on the Tesco organisations areTesco PESTEL AnalysisTesco Business analysisTesco is one of the leading supermarketsTesco Strategy analysisTesco Changing Business EnvironmentTesco Fresh Veg Supply chemical chain Management