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Tesco Swot Analysis 2013

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SWOT analysis on TESCO: Strengths: Tesco is a market leader in the grocery market, holding 28.3% of market share on December 2016, it’s closet competitor Sainsbury had only 16.5% and Asda 15.3% , having the biggest piece of the overall industry is an important quality that allows the company to generate profit from it . Tesco is also an online grocery market leader , it’s the first firm that developped a sucessful online chain , Tesco is always enhancing its services online and products Tesco uses an efficient tool to be always informated about it’s consumers as well as retain them , No less than four times each year, the holder gets an announcement and vouchers to the estimation of focuses they have spared . Moreover clubcard is an instrument …show more content…

According to Michael porter there are two ways to gain competitive advantage in market, first one its differentiation where the company aims to provide customer with a unique and different product or service compared to its competitors , it can be realized by market differentiation, product differentiation, and demographic differentiation. Another tool to gain competitive advantage is cost leadership where company aims to deliver a good quality products with low prices, the company has to be nimble when it comes to creating and developing competitive advantages. Tesco had been always an innovative company in terms of product differentiation, it’s the first self-store, a lot of technologies can be found in Tesco stores for instance: self-check out machines, electronic shelf labelling, wireless devices but in a world where technology is always enhancing and more people are choosing online shopping, the company should always keep evolving its technological services and provide customers with different products. Providing customers with a customized services and enhancing it is a critical element , Tesco should aim to keep up with the technology world changes , by making IT the business heart of company and allocating resources into that department would bear a lot of fruits and organization would be able to keep its strong positioning that hold after the hard fought, because now customers have high expectations of the company so they will be looking for changes all the time and with British customers a small mistake would make them turn

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