SWOT Analysis of Tesco
Prepare an analytical case study on communication strategies of tesco plc.
Answer:
SWOT Analysis of Tesco
This SWOT analysis gives focus on the Tesco group. It is considered as one of the global retailing powerhouses of the retail brands. The company offers food and non-food products across the world. In this analysis, the main focus is given on the company's strength, weakness, opportunities, and threats that will take into consideration the detaildescription of the business strategy and brand engagement of the company.
Strength
Tesco is considered as one of the largest companies that have attained many awards for its retail excellence. The company offers customer service and also overall effective services to its customers. It has the most profitable supermarket and retail formats all overall the world. The strength of the company is related to the significant cash reserves and a wide range of property in its portfolio. It also offers a strong financial position to take into consideration all types of economic cycles. Tesco has many store formats that induce customers to buy the products. Its appeal to local and cultural need and also assist to offer a more specialized service experience. The company has also given focus on the improvement of technology that has enhanced the operations and also created greater cost-effectiveness and enhanced the service experience (Alam, 2013).Weaknesses
It is evaluated that some of the company subsidiaries are not operating as there is major effect of the external factors. Like the financial profit level of the company is affected at the time of credit crisis and also has to rebound from the global event. The weakness of the company is that there is a competition level that has led to the price war and also the company should have given focus on the competitive advantage. Due to the less disposable income, the retailer adjusted the inventory and also the selection process by not taking into consideration the high cost of inventory (Peeroo, Samy and Jones, 2016).Opportunities
There are various opportunities that are available for the strategic alliance. Tesco has an opportunity to enhance the market by taking into consideration online shopping and also should offer home delivery services to the more areas. In the private label market, there are many opportunities that are prevailing. The emerging market gives many opportunities for the retail formats and also the company gives many discounts so that the customer gets induced in an effective manner (Samantara and Sharma, 2015).Threats
The economic recessions and credit crunches will give threats to the market share and profitability in the areas globally. It reduces the number and size of the purchases made by the consumers. Labor threats have also considered by the company that enhances the wages and benefits globally and add basic company cost and gives pressure on the pricing strategy. The rules and regulations of the government are also giving pressure to the company. The food prices are increasing day by day and also it has reduced the needs of the consumers and also how much disposable income is required (Wood, Wrigley and Coe, 2016).References
Alam, J., 2013. An analytical case study on existing corporate communication strategies of tesco plc, uk.
Peeroo, S., Samy, M. and Jones, B., 2016, September. Generating Customer Engagement and Customer Enragement on Facebook Pages of Tesco and Walmart. In Conference on e-Business, e-Services and e-Society (pp. 146-156). Springer International Publishing.
Samantara, R. and Sharma, N., 2015. Talent Management at Tesco: A Case Study. Parikalpana: KIIT Journal of Management, 11(2), p.95.
Wood, S., Wrigley, N. and Coe, N.M., 2016. Capital discipline and financial market relations in retail globalization: insights from the case of Tesco plc. Journal of Economic Geography, 17(1), pp.31-57.
