Tesco Swot Analysis

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SwotSTRENGTHS
* Retailer - 3rd largest (by revenue) & 2nd largest (by profit) in the World. (pg3 p1) * Geographic spread in distribution – in over 14 countries & 3 continents. (pg3 p1) * Grocery market leader in the UK with 30%. (pg3 p1)

* Umbrella brand marketing strategy, therefore one image to promote company (pg3 p3) * Tesco has great “History” as they have been around since 1919, therefore they have established a position in the eyes of UK consumers. (pg4 p1) * Customer loyalty as evidenced through the use of Green Shield Stamps (pg4 p3) then the Clubcard (pg4 p6) * The strategic capability to sell some its products in different segments of the market at the same time as they range in price from low, middle and high end. (pg5 p8) * Innovative use of technology –eg. one of the first to install self service tills & use of cameras to reduce queues. (pg5 p10) * Management excellence – seen by the successful introduction of changes with respect to the number & structure of workforce thus giving them that flexibility to evolve with changes in the market environment. (pg5 p10) * Solid financial performance over the years & one of the most successful UK company’s (pg5 p7) as can be seen in its financials over 2010-2011. Sales revenue is up, dividends per share is up and gearing is in a good position over these 2 years. (appendices 3, 4, 5) * CSR policies commitment eg. Computers for schools programme, charitable contributions, creating jobs, etc

WEAKNESSES
* UK dominance (pg3 p2) may lead to over reliance on UK market especially in light of recent economic downturns across the world. * 70% of overall sales are at home (pg9) and lack of geographic spread outside UK (over 71% of outlets are based in the UK. * UK Market approaching saturation. (pg10 p6)

* Marketing strategy of umbrella brand (pg3 p3) can affect Tesco as any negative factors affects the entire company. * Local unrest as SME’s...
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