Tesco Social Factors

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TESCO is a British multinational headquartered in UK , it was founded in 1919 by Jack Cohen , he began offering extra goods in London , on primary day he earned 1£ from offers of 4£ , In any case, the Tesco mark get to be distinctly unmistakable in five years and after that later inside 1924, when Mr Cohen purchased a shipment of tea from Mr T.E Stockwell. Which was then join later with the initials letters to shape Tes-co and Mr Cohen opened a leader Tesco store in Burn Oak, North London. In 1930 TESCO brand continued to evolve , MR Cohen bought a land and expanded the business, on 1947 TESCO floated on the London Stock Exchange , it had the self -service store back in 1940. TESCO is one of the biggest worlds retailers, it’s present in 11…show more content…
Uk population is increasing and ageing due to the baby boomer, longer life expectancy is resulting in a growing older population. People working longer will increase the size of the labor force, but there will also be further pressure on services. This would affect TESCO products as people are curving more healthy products, thus Tesco started producing organic products, it provides as well an esteem added to its products and services.
Technological factors:
Technology is an intrinsic element to Tesco supply chain management of Tesco, it uses many technologies like wireless devices, self- checkout machines, intelligent scale, Radio Frequency Identification (RFID), Electronic shelf labeling, etc. The utilization of Electronic Funds Transfer Systems (EFTS), Electronic Point of Sale (EPS) and electronic scanners helps the company to improve stock activities and effectiveness of distribution (Tesco,
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it’s a very competitive market so building a new market and make it strong is really hard so the threat of new entry that would affect Tesco performance is low.
• Intensity of competitive rivalry
The intensity of competitive rivalry in the market that Tesco performs in is very high, Tesco has many strong direct competitors that compete on prices products.. Inflation returned to the grocery market after more than two years of falling costs, Tesco reported a raise in sales in Christmas period and stole the light from its competitors, Tesco sales grew 1.3 percent compares to Morrison’s whose sale were up 1.20 and Asda who had a decrease of 2.4 percent as well as Sainsbury whose sales fell 0.1 percent.
• Bargaining power of buyers
The bargaining power of Tesco customer’s is quite high , switching cost is very low and it’s easy for customers from one brand to another so maintaining consumers is hard .
• Bargaining power of suppliers
For Tesco , bargaining power of suppliers is low , the suppliers of UK major food retailers have fear of losing their commercial contracts and business with major Uk retailers therefore they make positive agreements to get products as low price as possible
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