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Pestle Analysis of Tesco

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Pestle Analysis of Tesco

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  • March 2009
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Tesco is the giant of all supermarkets due to its UK dominance.  Retail analysts have identified three main reasons for this. 1. Tesco’s are everywhere;
2. sell to everyone;
3. sell everything
Due to the nature of the TESCO organisation with particular reference to how it has branded and marketed itself, and the current economic climate, the assessment of external factors by a PESTLE analysis has been crucial in TESCO’s success.  This is because TESCO has taken into account the implications for consumers, employees, stakeholders, associated organisations and the company’s mission statement.  Each external factor would have been and continues to be examined and categorised in terms of whether its implication is negative or positive, large or minor significance, intermittent or continuous impact and so on. PESTLE analysis factors examined:

Politically, the credit crunch may lead to higher numbers of unemployment.  As one of the largest and fastest growing retailers more jobs will be available with TESCO therefore helping to reduce the levels of unemployment.  A PESTLE analysis is therefore useful in keeping TESCO up to date with their environmental surroundings, for example, realising in advance that we were heading for a recession would have helped them to plan ahead. Whilst one of TESCO’s competitive advantages at present relates to their overwhelming physical presence, there are issues about TESCO driving out the competition from other retailers.  There are policies as well as laws and regulations governing monopolies and competition which would be identified though a PESTLE analysis.  This is potentially one of the main issues that TESCO’s are faced with.  Protecting consumers and ensuring that entrepreneurs have the opportunity to compete in the market economy are important within consumer law.  Due to the current state of the economy, many small businesses are failing and many unable to enter the market.  A PESTLE analysis helps to assess where...