Swot Analysis of Tesco

Topics: Retailing, Supermarket, Wal-Mart Pages: 9 (2578 words) Published: April 3, 2011

1. Introduction3

2. History and Procedures3
2.1 History of Tesco3
2.2 Procedures3
3. Findings4
3.1 S.W.O.T analysis4
3.1.1 Strengths:4
3.1.2 Weaknesses:5
3.1.3 Opportunities:5
3.1.4 Threats:5
3.2 Michael Porter’s Five Forces Analyses6
3.2.1 The threat of substitute products6
3.2.2 The threat of the entry of new competitors
& The bargaining power of customers6
3.2.3 The intensity of competitive rivalry8
3.2.4 The bargaining power of suppliers9

4. Conclusions9

5. Recommendations10
5.1 Short Term Recommendations:10
5.2 Long Term Recommendations:10
6. References11
1. Introduction
This introduction part will show the structure of the whole report. In the procedures, the report will indicate how and where did the resources come from. In the findings, based on the S.W.O.T analysis, an evaluation of the current conditions facing the firm will be given. By using the Michael Porter’s five forces analysis, the report will evaluate the self-position and global strategies taken by Tesco with the aim of retaining the strengths and discarding the weaknesses in the competitions. Furthermore, the sustainability of the strategies will also be examined. In the conclusion, report will make a portfolio of synthesis about all the analyses made in the findings part. Finally in the recommendations part, based on its global strategies, with good reasons, beneficial methods will be offered for Tesco to have more improvements.

2. History and Procedures
2.1 History of Tesco
• Created in 1919 by Jack Cohen, who firstly sold food in a market in the East End of London. • Used the word ‘TESCO’ the first time in 1924.
• Opened the first supermarket named TESCO in 1956 in Essex. • Started Internet Service in 1995
• Has expanded the business to Europe, Ireland and East Asia. 2.2 Procedures
All the statistics referred by the text are from relevant Business website such as Financial Times and Business Week. Other information like comments that evaluate the strategies of Tesco in details are from some articles accessible through Muse. These references are sorted out according to the requirements of the task. For instance, the report put all the comments about the global strategies together. 3. Findings

3.1 S.W.O.T analysis
Here the report will evaluate the current internal factors and external environmental conditions facing the firm. 3.1.1 Strengths:
* Be popular and have a very high brand value in Britain.
Tesco are very popular in Britain since its long history and principle of selling high-quality products at a lower price, which earn itself quite a lot of loyalty from customers. Also five different types of shops make Tesco perfectly meet the different needs in different regions. * Have very large overseas market.

Tesco has expanded the business to Europe, Ireland and East Asia. In the 21st century, East Asia is the area where economic development is very fast, which offers good opportunities for Tesco. And such potentials can be seen as its strengths. * Be well-capitalized.

Tesco makes ‘Every little helped’ as its key concept of marketing. It means that Tesco usually makes its products cheaper. In this way, Tesco gains revenues and profits from greater sales volume. Evidence: Elizabeth (November 24, 2005) wrote “Tesco has captured more than half the growth in the grocery market over the past five years”. * Have diverse kinds of services besides the retailing such as telecommunications service, financing and other services. Tesco started its Internet Service in 1995 and started telecommunications service in 2003. Except for selling food and commodities, Tesco also does other services for customers. Such diversity of services offers Tesco good elasticity when meeting the financial crisis.

3.1.2 Weaknesses:
Comparatively speaking, as a member of retailing business, Tesco has a lot of...
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