Tesco: Pest And SWOT Analysis: Tesco

2073 Words9 Pages
One dominant international company that utilizes and demonstrates the extent of the PEST and SWOT analyses is Tesco. Tesco is a multinational and multiplatform food retailing company with its headquarters in the UK. Tesco has stores in twelve countries across the world, and it is the second largest retailer after Walmart in terms of profits made and revenues. Tesco is known from selling food and non-food products; however, today it also provides finance, mobile, insurance, hardware services, and more. To keep an edge on the market, stay ahead of the competition, and be knowledgeable on a new country or market they are entering, Tesco completes a PEST analysis followed by a SWOT analysis. For PEST, the political factors Tesco examined…show more content…
After analyzing the political, economic, social, and technological environment, as well as strengths, weaknesses, opportunities, and threats, a company can figure out how competitive forces shape their strategy. Awareness of these forces helps a company position itself in its industry where it is less vulnerable to attack. The nature and degree of competition in an industry or between different countries depends on five factors: the threat of new entrants, the bargaining power of customers, the bargaining power of suppliers, the threat of substitute products or services, and competing among current contestants (Porter, M. E., & Porter, M. E. (1979). How competitive forces shape strategy. Boston, Mass.: Harvard Business School Press.). There are also many barriers to entry when it comes to international business and expansion in the first place. Barriers include economies of scale, product differentiation, brand identification and loyalty, capital requirements, cost disadvantages, access to distribution channels, and government policy limit or foreclose entry. It is said that the key to growth and survival in any industry or country is to retain loyal customer relationships, position your company where it is less vulnerable to attack from opponents, differentiate the product through marketing…show more content…
To be successful, a high level of cultural intelligence, as well as extensive research and training is necessary to be prepared and knowledgeable on a country’s cultural and social background and history. In addition to considering a foreign country’s culture, companies must also analyze the political, economic, social, and technological factors that could improve or hurt their performance. This can be done with a PEST analysis. Once those factors are evaluated, strengths, weaknesses, opportunities, and threats must be evaluated through a SWOT analysis. A SWOT analysis can analyze the aspects of a single company or foreign environment a company plans to enter, or the analysis can evaluate two or more companies or foreign environments simultaneously. Furthermore, a TOWS matrix can be completed to figure out how to take advantage of strengths and opportunities to eliminate weaknesses and threats. Once these analyses are examined and considered, strategies can be formulated to ensure success, improvement, and gain regarding international business plans and

More about Tesco: Pest And SWOT Analysis: Tesco

Open Document