Tesco SWOT Analysis

Strengths

• Largest supermarket chain in UK.

• Strong brand name and financial power.

• Founded in 1919, more than 90 years of history.

• Tesco grew with pace organically and through acquisitions.

• It has been famous for food and drink but now it also deals in clothing, electronics, financial services, telecoms, home, health, car and dental insurance, retailing and renting DVDs,CDs, music downloads, Internet services and software.

• Third largest retailer after Wal-Mart and Carrefour.

• Tesco stores are present in 4811 locations.

• International presence in 13 countries.

• Strong commitment to corporate social responsibility.

• Tesco is running stores in six formats which includes Tesco Extra, Tesco Superstores, Tesco Metro, Tesco Express, One Stop and Tesco Homeplus

• Strong bonds with supplier, improving supply chain to reduce the cost.

• Better usage of technology in marketing and distribution.

Weaknesses

• Entering number of different markets so not able to focus on single market for specialization

• Lack of experience in phone and insurance markets

• High transport costs

• Massive amount of fuel is used in transporting vehicles which causes pollution.

• More dependency on UK market

Opportunities

• Strategic alliance with other companies

• Opening of new stores

• Joint ventures

• Online arena for selling and marketing of products and services

Threats

• Tough competition from giants Wal-Mart and Carrefour

• Takeover of Asda by Wal-Mart

• Fluctuation in taxes may impact the Tesco financials.

• Innovation by other super markets

• Government regulation and policies

• Rising raw material cost

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