Tesco is the UK’s leading store and therefore to remain on top position there is many aspects which Tesco has to face in its daily life. To observe strength, weakness, opportunities and threats, it is important to perform SWOT analysis which will give a brief idea on the performance of Tesco.
Tesco has a very powerful brand, over the past years from 2001 to 2005, Tesco stores increased from 692 to 1780 stores which include the new format of stores like Tesco Express and Tesco Metro competing in different sectors. Their strategy of buying in bulk so that they can easily compete in lower prices with its main competitors like ASDA and Sainsbury. They have not only loyal staff but also they have loyal customers which plays an important behind their success. In order to keep their customer attractive they have club card scheme to keep their customer keeps on coming back to them.
Tesco has too much product diversification, e.g., Tesco has not good knowledge in selling books as compare to Waterstones. Tesco has to first get fully command on first one product and then move to another but here Tesco has diversified in different range of products where the knowledge is not sufficient to compete with its main competitors. Recently Tesco also moving towards online selling, but to become online like other web companies they have free cash to invest o latest web technologies, whereas Tesco has less free cash to invest. They invest too much on large stores and their infrastructure. They have also large amount of debts, which can be harmful as interest rates are increasing.
In short period of time Tesco has spread significantly all over the UK, now it is the time to spread across the globe especially towards Eastern Europe and Asia. Tesco can use internet facility to promote their products more efficiently. Like Tesco can sell more cheap books on only and can easily compete with Amazon. Tesco should also look...