Tesco SWOT Analysis 2015 2017

Tesco SWOT Analysis 2015 2017 Tesco plc was the UKs top retailer in 2013 (Retail Economics, 2014) and maintains a presence in 12 countries in Europe and Asia (Tesco, 2014). To sustain its position and build profitability, Tesco must assess its strengths, weaknesses, opportunities and threats (SWOT). Strengths and weaknesses focus on internal factors affecting a company in contrast, opportunities and threats identify external issues (Collins, 2010). Thus, it is important to carry out a SWOT analysis to ascertain how the company is performing in the alimentstuff (Kotler et al., 2013).Strengths Tesco is a powerful retail put up globally, in the top 100 of the worlds most valued brands, slightly below Ikea and well above eBay (Brand Finance, 2014). It is known as a company that offers value for m oney, convenience, a wide range of products, and locally-sensitive management (Wood and McCarthy, 2014). Worldwide, Tesco has 6,784 stores, an increase of 433 stores since 2012, despite the disposal of their US venture, Fresh Easy (Tesco, 2012, 2014). Tesco has utilised sophisticated business methods in its rise, including the creation of stores like Tesco Metro and Tesco Express, which are small stores in local neighbourhoods to make shopping more convenient for the customers (Schiraldi, Smith and Takahashi, 2012). another(prenominal) strengths in their global operations include online shopping, joint ventures, such as in China, and local recruitment, including in senior management positions (Koen, Bertels and Elsum, 2011). Because of their size and facilities, Tesco can steal in bulk, benefiting from economies of scale (Blythman, 2012). This permits the company to lower prices to keep prices attractive and be competitive with UK retailers such as Asda or Sainsburys. Additionally, by creating loyalty packages such as the Clubcard, they retain customers, creating long-term relationships (Felgate, Fearne and Di Falco, 2011).Weaknesses Tesco has grown to be a very bi g company with a very wide range of products, diversified into food, books, clothing, furniture, insurance, petrol, and financial services. This mock up has its weaknesses. Tescos profit has been impacted by bad debt from credit cards and high levels of household insurance claims (Ruddick, 2014). Another issue is Tescos lack of pay off in few merchandises 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 peeled web technologies and IT, as well as store refurbishment, diverting cash from price reduction strategies (Ruddick, 2014). This is likely to have an adverse effect on sales (Bunn and Ellis, 2012).Opportunities There are many opportunities for Tesco, including enlargement 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 can intersect with this investment, particularly in opposed 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 diligent family lives or have mobility issues Tesco is seek to meet 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 may 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 food market retail market faces relatively limited competition yet is fiercely price-sensitive (Clarke, 2012).Threats Tesco is confronted by many threats in the market. Their current position as number one in the UK grocery retail sector means that they are the target of consistent competition from Sainsburys, Asda, Morrisons, and, change magnitudely, Lidl and Aldi (Stevenson, 2014). One threat that Tesco continues to resist is the takeover of Asda by Wal-Mart. stigmatisation 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 intolerance for out-of-town stores, as well as concern for the livelihood of small shops, can as well imperil Tescos expansion plans (Stevenson, 2014).Conclusion SWOT analysis allows marketers to identify risks in their environment. Once risks are evaluated, measures can adopted 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 expression plans to optimise success, or avoid entering into projects in which failure is a significant possibility. Strengths may be tailored to opportunities in the market, so that strategies are intensify 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 reliance on online shopping, digital products and services, discount grocery services.BibliographyBrand Finance (2014). Global 500 2014 The worlds most valuable 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 behaviour 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 variety and social deprivation. 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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 saturation 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, 7th 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 Chain Management