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TMA 01 - Essay Example

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There are both internal and external factors that have impact on the business like stakeholders, competitors etc. There are different methodologies that are widely…
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TMA 01
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Download file to see previous pages It is a high performing organization with growing international business opportunities and it operates by both global and domestic markets by more than 32 % market share and it has more than 2000 stores only in UK. To analyze the business environment of Tesco, I here use SWOT analysis to examine factors that influence Tesco PLC’s business environment.
SWOT analysis is an important part of strategic management and planning. It provides a keen observation in to both internal and external environment of a firm. Environmental factors internal to the firm can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T).
Tesco’s strengths are its resources and potential that can be used as means for establishing and developing competitive advantages. Tesco has a strong brand name that serves to be great market strength and it enjoys the marketing advantages. The brand loyalty of Tesco created through advertisements and customer oriented activities seems to be a strong defender for any sorts of competition from other firms within the industry. The reputation that Tesco has been able to create among their customers, results in a market of its own and it seems to be an asset as it attracts more customers further yet.
A general weakness of Tesco is its lack of access to the best distribution channels as it faces difficulty to access best manufactures due to the distance and other problems. As compared to other large retailers and groceries within the UK market, Tesco should focus more on online shopping. Online shopping is becoming as the most convenient shopping method for most of the public as it needs less time for shopping and relatively less to be paid. Tesco can attract more customers through online shopping and any sort of advanced loyalty card strategies.
Like other business firms, Tesco as well feels difficult to get access in to manufactures that are completely free from ...Download file to see next pagesRead More
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