Before performing a specific SWOT analysis it is often useful to perform a SCAN (strategic creative analysis), or similar objective setting analysis. Objectives vary between companies. For instance, many companies would want to increase market share. But Tesco is under investigation by the monopolies commission, therefore they might be better concentrating on objectives like "increase sales revenue".
The following discussion provides a general overview of the strengths, weaknesses, opportunities and threats surrounding Tesco. Use it as a basis for conducting your own, specific, SWOT analysis of Tesco (or similar companies.) It is a teaching resource for students or managers that can be used to provide inspiration for any specific SWOT analysis.
Threats to Tesco
First, let's take the T in SWOT and look at possible threats to Tesco. Examples of possible financial threats are fluctuations in the stock market and tax increases. Remember, if the objectives of Tesco are not threatened by these factors then they are not threats. But, as most companies would be worried about a tax increase, a general, continuing objective might be to decrease the tax burden. Other objectives may take precedence, and make the tax threat insignificant (for a period).
The biggest, most obvious, threat is:
* Online and offline innovation by other supermarkets aimed directly at taking customers from Tesco.
Examples of specific threats that might affect Tesco in the future, are shown in the left margin. The biggest threat is probably that of takeover, like the Morrison group purchasing the Safeway chain or Asda being taken over by Walmart.
Opportunities for Tesco
Now consider the O in SWOT. There are many great opportunities in the online arena, so many that Tesco needs to decide its main objectives before pursuing particular opportunities. Tesco has already had many online successes. For instance, it has turned the Amazon threat into an opportunity by...