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Strategic analysis of a company and its competitive environment - Essay Example

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Table of Contents Introduction 2 Industry Environment and Competitors 3 Industry Analysis 3 Competitor Analysis 4 Tesco and its Internal Strategies 6 Brand strongest resource and strategic importance 6 IT integration 6 Supply or Value Chain 7 Climate Change Strategy 8 Conclusion 8 References 10 Introduction Tesco plc…
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Strategic analysis of a company and its competitive environment
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Download file to see previous pages Tesco offers almost 40,000 food products, including clothing and no-food items there product range includes their own labeled products that account for almost 50% of the total sales of the company (Finance.yahoo.com. 2013). Tesco labeled products are of three grades value, normal and finest thus targeting and offering products all range of customers offering them products of different price ranges. Many of the Tesco stores have gas stations that makes it the UK's largest independent petrol retailer. Tesco has almost 530,000 employees that according to the company policy are called their colleagues and it operates almost 6,780 stores around the world with 3,146 stores in UK thus making UK its largest market and it largely depends upon the UK market as 75% of the revenues of Tesco are from UK market. Tesco also operates online store through its subsidiary Tesco.com (Tescoplc.com. 2013). Tesco is one of the largest retailers in the world and was held responsible for 5.4 million tons of Carbon Dioxide emission in 2010-11. However in 2011 Tesco was named the top retailer globally in the Carbon Disclosure. It was the recognition given to the company for its Carbon reporting and reduction measure that made it the top FTSE 350 Company (Eurofound.europa.eu. 2013). Tesco recognized its responsibility towards environment in 2007 and since then had adopted the climate change strategy to curb the carbon emission from its business and ultimately aims to become the zero carbon emission company. Industry Environment and Competitors Following below are the industry and the competitor analysis of the Tesco: Industry Analysis UK along with Germany, France, Spain and Italy is the largest food and drink producer in the EU. The food and drink manufacturing industry is the single largest manufacturing sector in the UK with almost ? 70 billion turnover in the last year while more then 500,000 people are employed by the food and drink manufacturing industry that represents around 13% of the total manufacturing workforce in UK (SOFHT, 2013). Besides the manufacturing industry food and drink retail sector is the largest industry in UK that employees almost 3 million people. The retail food and drink industry has always witnessed the growth in the UK economy as it is believed that 20% of all consumptions are relating to the food. However the year 2013 brought the growth of revenues at the fastest pace for the retail food and drink industry. Retail sales in July 2013 were 3% higher than of sales in July 2012. The major reason of this increase in revenues is thought to be the heat wave that as the longest period of hot weather that the UK has witnessed since 1997. It was thus due to the weather that people were spending more on food, drinks (alcohol), clothing and other out-door items. The surveys revealed that the grocery stores and the supermarkets dominated the UK retail industry and with every ? 1 spent 42 pence were on food. Especially in July 2013 it was seen that the consumers spent almost ?7bn per week that is an increase from ? 6.8bn in June 2013 and ?6.7bn in July 2012 (Financial Times. 2013). The food and drink retail industry in the UK has been associated to the supermarkets or the grocery retail stores that along with the traditional stores also provide their products online. UK witnesses one of the world’ ...Download file to see next pagesRead More
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