Tesco plc was the UK’s 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. 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 market (Kotler et al., 2013). Strength Tesco is a powerful retail brand globally, in the top 100 of the world’s most valued brands, slightly below Ikea and well above eBay (Brand Finance, 2014).
• a growing business, full of opportunities • modern, innovative and full of ideas • winners locally whilst applying our skills globally • Inspiring, earning trust and loyalty from customers, our colleagues and communities (Our Tesco, 2015). This vision has helped Tesco to build its business globally and operate in multicultural and multifaceted environment. STRUCTURE Tesco’s employs a ‘decentralized structure’. In a decentralized structure, the decisions are taken at lower level of the management. Tesco’s each geographical location has a regional manager, the store manager is responsible to the regional manager and can make decisions specific to its store.
(Tesco 's was founded in 1919 in London and Jack Cohen bought a plot of land in 1934) since then the supermarket has expanded. The first supermarket was built in 1950 and subsequently it grew. Today there are 3,739 stores in the UK with over 310,000 colleagues. There are in excess of 6,000 stores worldwide. Brockenhurst
Tesco PLC is a British retailer with its headquarters in Welwyn Garden City in England. It was founded by Jack Cohen in 1919. Tesco classified as the third largest retailer in the world, having more than 6000 stores. The first Tesco store was in London in 1929 with its first product a tea. Currently, Tesco is retailing a variety of products for instants: cloths, furniture and toys.
Tesco is the largest food supermarket chain in the UK, and operates through 2,318 stores worldwide. Tesco is selling major supermarkets retail supermarkets in the UK and the existence of a massive penetration of nearly 90% and an annual turnover of over $ 1 billion. Tesco brand is internationally recognized and is not limited only to food and groceries name, but extended its work to non-food products. Tesco operates in 1,878 stores across the UK, also operates stores in the rest of Europe and Asia. Tesco.com is a wholly owned subsidiary to offer a comprehensive online service, including tescodirect.com and tesco.net.
There are several Tesco strength factors that lead to Tesco 's success. Among them is effective online operations. Tesco successfully implemented online sales channels in the UK. Revenue is also largely coming from online sales accounts versus the store. For the instance, 20% before the tax is imposed, the company has suffered losses in 2015, and on the same 20 percent of the Tesco retail market online increases earlier.
Beside Tesco has a good range of products and own label products which help strengthen its profit. One of its customer research confirmed that the one of main factor to choose to shop at Tesco is Tesco offers a wide range of products. Tesco does not stop expanding its range of products and tends to increase incessantly. On 2012, meanwhile in Thailand, Tesco opens new extra format store to satisfy every customer needs in one. It offers extra range, shop and service which including the pharmacy, optician, phone shop, money center and specially the staff on roller skate to help customers more faster.
Tesco can boast of a strong financial background especially in the UK and other countries that it is presently operation. For business year 2013/14 (ending 22 February 2014), it has group sales of over 70,894 million (tesco.com, 2014). Being a market leader in the supermarket / hypermarket industry, they have established a well-organized supply chain network around the world that is driving their international expansion smoothly. With experience in country such as China, India, Japan, Malaysia, South Korea, Thailand and Taiwan in Asia, Czech Republic, Hungary, Ireland, Poland, Turkey and UK in Europe, there is wealth of experience in international operation especially as this countries represent different cultures, economic, political and technological
Introduction Tesco is a British multinational company (MNC), which has the head office in Hertfordshire, United Kingdom (UK). Tesco owed its foundation to Jack Cohen in 1919, an insignificant booth in East End of London which sold surplus groceries. At the present, Tesco is the owner of more than 6,700 outlets all over the world and offering service to tens of millions of persons every week (Tesco, 2013). It became the third biggest retailer all over the world with outlets presenting in 14 territories worldwide, with the inclusion of China, India, Malaysia, Korea, America, Ireland and Slovakia (Tesco, 2013). In its wide-ranging scope of products and services, Tesco offers fresh foods as well as groceries items, electronics, clothes, household items as well as financial services.
Tesco (M) marketing team identified in a ratio that one loyal customer is worth five times a newly acquired customer. On the contrary, customer loyalty was declining significantly in respective departments geographically whereby competitiors had the benefits of attracting customers walking out from Tesco (M). With the aid of Tesco’s advantage in system tools and the rich resources of analytical staffs, Tesco (M) initiated a project to study the decline in customer loyalty towards its brand eventhough Tesco had the advantages of cost leadership strategy. Tesco (M) also wanted to extend its research and understand customers hunger and becoming priority brand in their purchase choice. Though Tesco (M) had an advantage in competitive priorities by balancing the need for responsive and efficient supply chain with its cross functional and logistical drivers integrated, vast quantity of product assortment created a new form of turbulence in the common demand and supply uncertainity.