Pest Analysis Of Tesco

This is one of the first issue firms has to consider before entering into a new market as no firm will want to invest in an unstable market environment. Tesco will have to properly analyze the political environment thoroughly to ascertain it stability for investment as firms performance is very much dictated by the political and legislative conditions of the home country. Developing countries most times promote foreign direct investment and support retailing as a mean of creating employment for it citizen and developing it economy. When going abroad Tesco tends to use few expatriates and more local staff that has a good knowledge of the market environment in strategic position. This not only will provide employment for locals but will also

This can be determined by first grouping customer into different segments according to their common needs or how similarly they will respond to marketing actions. The market mix strategy varies as per segment, with each giving different growth and profit opportunities. Market can be segmented on Demographics, psychographics, customer behavior, location etc., next is for Tesco to choose its target market, because no one strategy fits all customers, Tesco will be have to develop specific strategies for it target markets. Cost benefit analysis is most times done to ascertain the right strategy that will suit the situation. Once the strategies has been developed, Tesco need to position its brand image in the minds of it customers. Effective positioning involves a good understanding of competing products and the benefits that are sought by your target market. It will also require firm to identify a differential advantage with which it will deliver the required benefits to the market effectively against the

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