Tesco Swot Analysis 2013

Decent Essays
Tesco Plc (TSCO.L) was founded by Jack Cohen in 1919, launched its first store in Edgware, London in 1929. The UK’s largest retailer provide a wide range of service for foods and non-foods product, the third largest global retailer based on revenue.
Tesco’s attempted to extend its business into US market. The opening a chain of grocery stores ‘Fresh & Easy’ has incurred a 186million loss in 2010-2011. Tesco withdrew from the US market eventually with a loss of 1.2billion pounds. Despite the familiar language, the US market is highly competitive and US shopping cultural are not as uniform as might be excepted.
The aim of this report is to critically analyse the failure of Tesco in the US market. I will use SWOT analysis, TWOS Matrix and internationalisation
…show more content…
Competitive threats are coming from others global retail giants or US based retailer who may be able to offer lower prices and greater variety as well as have more established networks in the US market.
Risky because many others UK retailers (Marks and Spencer, Sainsburys, Laura Ashley, etc.) had failed enter US market. Tesco entered into US market at the downturn in the world economy crisis (crash in 2007-2008).
TOWS Matrix
TOWS matrix (MindTools, 2016) is used to discover, we can illustrate how Tesco determine their competitive position and growth potential in the US market.
S-O Strategies
To maximize their opportunity to the new market by using their strengths, they trumpeted Fresh & Easy as a European version of Trader Joe’s, develop a chain that offered high quality yet affordable, groceries with an emphases on fresh product, including ready to eat meals. Focus on own-label produce rather than the usual vast range of US brands.

W-O Strategies
To minimise and overcome the weaknesses, they take advantage of their opportunities, establish a large distribution centre, which enabled it to manufacture high-quality food, and developed follower-supplier relationships with their U.K. suppliers (Lowe & Wrigley,
…show more content…
Building brand awareness also a key factor to ease of entry and penetration of the company in the new market for a successful market entry. Tesco and others UK company should understand the necessary of establishing thoughtful and strong PR strategies in the pursuit of selling their brands to the local consumers.
When Tesco operations in the US were an attempt to duplicate its operations in the UK because it tried to standardise instead of localising them. Tesco struggled in the US market and forced to exit one of the reason was due to lack of local partner which made very difficult to approach and succeed in US market. Therefore, they should develop localisaition strategy that fit into the target market‘s culture just like what they did in South Korea. Deep local market research and analysis is necessary when come to mature market before initial rollout because new entry need gain the share of the existing players as the local market left not much scope for the

Related Documents

  • Decent Essays

    The results have caused the value of the British pound to drop to its lowest relation to the dollar in thirty-one years. The lack of clarity whether England will in fact depart from the EU has caused corporations that created London’s real estate boom to pull out. The central bank responded by cutting the amount of cash reserves that banks are required to hold as a financial cushion against economic shocks. The decision will free up nearly $200 billion in potential lending to help counteract the real estate market decline. According to Mark Carney, Bank of England’s Governor, although helpful, these excess funds will not be enough to offset the market and economic volatility that will be expected if England departs from the European Union.…

    • 1300 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Samsung used to follow a pattern of traditions and behaviours which was reflected in the norms and cultural beliefs which the employees strongly held; but it had to break it in order to develop creativity through building new uncommon designs. The main focus of the pattern is the action not the intentions without actions. Another attempt to improve the designer’s creativity was sending them abroad on worldwide tours in order to learn more about international markets and exposed them to various cultures. Initially, the changes occurred in the company’s management as they were still implementing a policy that prioritized quantity over quality. Hence, Samsung decided to include consistency and variety, harmonization with the environment, designing for experience and high levels of convenience in their products to gain consumers trust and loyalty.…

    • 1310 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    can make several changes and improvements within the company’s operations and strategies. First, the firm needs to control the suppliers’ bargaining power. By evaluating which brands provide the greatest returns and which costs too much to the firm to continue carrying, the company will be able to better control the suppliers and their effect on the company’s success. By creating more in-house operations and eliminating the cost from suppliers that are not selling well, the firm can potentially increase profits. Eliminating these costs also allows Foot Locker to take control over the suppliers’ power and reduce the risk of the suppliers jeopardizing operations by both competing and supplying products to the firm.…

    • 1164 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Wile some laws proved to be beneficial for Wal-Mart others didn’t. For instance, the minimum wage and high production cost because of that lead Wal-Mart to outsource production of goods to foreign suppliers, that provide low cost. International: As Wal-Mart started facing issues locally, such as, low growth rates, the best option the management could come up with was to expand internationally. Following the business model of many other international discount chains, Wal-Mart also started expanding internationally. However, each country had its own set of issues that had to be dealt with.…

    • 709 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    This effective strategy leaves the competition struggling to operate providing an opportunity take advantage (Clark&Chan,2014). Stores such as William, Harrow, Charles Philips and Victor Value sold over 300 stores to Tesco in the process. Tesco is currently UK’s biggest retailer and the nation biggest private employer with over 300,000 employees and 3,000 stores in the United Kingdom (Winterman,2013). But are the numbers correct? Tesco does not clarify or mention the negative impacts it brings to the local workforce.…

    • 1094 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    As the market is very competitive, it is crucial for Dixson to differentiate in comparison to its competitors. As there are companies in the market that adopts to these strategies and makes them the leaders of the market. Amazon and John Lewis are both leaders in relation to its own industry. In terms of future changes, it would be better for Dixons to divide their shop into two sections as they could use one store for cameras and other one for phones. Also, it would also be beneficial for Dixons to adopt to the advertising…

    • 805 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Tesco Pest Analysis Paper

    • 2038 Words
    • 9 Pages

    Threats: Tesco is confronted by many threats in the market. One of these threats are that Tesco continues to resist is the takeover of Asda by Wal-Mart. The ninth most-esteemed brand globally, Wal-Mart is Tesco's biggest worldwide rival and subsequently has the vital aptitudes, assets, experience and trusts to cause Tesco issues. The decrease in wage and the ascent in unemployment have influenced the optional purchasing conduct of purchasers which has antagonistically affected the company's deals, specifically the non-food items. Workers threats regarding expanded wages and profits around the world add to TESCO's cost basis, which further puts pressure on its pricing strategy.…

    • 2038 Words
    • 9 Pages
    Decent Essays
  • Decent Essays

    Conclusion In the process of coming up to a decision based on Brexit has concluded to show the decline of United Kingdom’s economy. It has reach to the point where the interest rate has been cut and the pound has lost value. The lost of the value of the pound effect American travelers making the trip to Britain more expensive, but the exporter are benefiting. The supply and demand of Britain has fell below the equilibrium meaning there is a high shortage instead of a balance economy. All the data or statics have proven that Brexit is the cause for Britain to go to a similar path as the Great Recession on April…

    • 749 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    That 's despite desperate government efforts to privatize public assets, cut work forces and reduce spending on public services, so there 's essentially nowhere to raise money in a crisis situation without implementing austerity measures that would rival the Great Depression in the United States. Another big worry is that most of the economy is fueled by technology and digital services that could easily disappear when basic services like food production and manufacturing no longer comprise most of the world 's economic output. Brexit could easily trigger economic pandemonium by forcing the European Union to allow its members to write off debt to prevent further defections. This could trigger a catastrophic meltdown in the $500 trillion derivatives market and pop the $100 trillion debt bubble in a situation that mirrors 2008 and the Lehman bankruptcy’s chain of…

    • 803 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    President Herbert Hoover’s reasoning behind the depression was due to Americas the international economic situation. As a result of World War 1 the international economy was weakened, and only functioned as long as American banks exported enough capital to allow European countries to repay their debts to America and also continue buying American goods. On the other hand it was almost impossible for European countries to repay our banks without their own economy going bankrupt. Rather they relied on payments from Germany and Austria to cover their debt, even though they would never get reimbursed because Germany and Austria were in worse debt than anyone else. Late in the 1920s American companies began to slow down production, they reduced their purchases of raw materials and supplies from Europe; a result many European economies were weakened.…

    • 805 Words
    • 4 Pages
    Decent Essays