Speech Notes Fpr Tesco Steeple Analysis Essay

651 Words Oct 27th, 2010 3 Pages
iki’s speech notes
Slide 8: Tesco Social Factors
The ageing population is discouraging for the food retailers older people tend to eat less. They are less likely to travel to supermarkets to shop compared with the younger generation.
Although internet literacy level drops over the age of 65 years within the population it has nevertheless been predicted that the ageing population would find online shopping more convenient. However, small deliveries are considered to be ineffective and expensive.
Consumers’ attitude towards food is incessantly changing as they have become more health- conscious. An increase in the demand for organic food has been accommodated by Tesco to reflect this change in demand. Payment by cheques and cash at
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However, there is still a lot of financial uncertainty meaning that consumers are likely to spend less on premium products, encompassing organics and ready prepared meals, which will adversely affect both sales value and margins.
However, the positive aspect of recession is that the customers eat out less and eat more at home which provides opportunities for grocery retailers like Tesco to increase their output. It must be noted that food is the last thing that customers will cut back on.
Slide 16 Morrison Treat of Competitive Rivalry
The supermarket retailing industry is a highly competitive. However it is dominated by only 4 major players. They are Tesco, Azda, Sainsburys and Morrisons. Morrisons is going to improve its position to fourth by taking over Safeways. Amongst the other three competitors Tesco is in the forefront followed by Azda.
These two possess great threats to Morrisons due to their sizes, financial strengths and cost efficiencies.
Slide 17: Morrisons Bargaining Power of Buyers
Their bargaining power is very high due to the availability of several alternatives. If the buyers are not satisfied, they will easily switch options and the switching costs are very low. In addition, due to the hyped information awareness the customers have full details about demand and actual market prices.
Slide 18: Morrisons Bargaining Power of Suppliers
Morrisons has up to now been not threatened by the bargaining

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