What is SWOT and PEST analysis?

Tesco swot and pest analysis?

• Answer:

  STRENGTHS: o For Tesco to create unique products o To provide high level customer service o Presence in multiple retail markets o Increasing market share o Insurance o Tesco online o Brand value o As a business looking for continued expansion TESCO have reserve funds of credit coupled with income derived from property portfolio development funds. WEAKNESSES: o Reliance upon the UK market o TESCOs position as a price leader in UK markets can lead to reduced profit margins in order to retain the key price points on must have commercial items o Grocer outlets are not set up to operate as specialist retailers in specific areas of product which can be capitalised on by other smaller bespoke retailers o OPPORTUNITIES: o Further international growth o Statistics suggest TESCO is the third largest global grocer which indicates a level of buying power to ensure mainstream economies of scale. o The development of Tesco Direct through online and catalogue shopping will grow the use of technology, providing the launch pad for larger non food based products with moderate to high margin returns and less focus on sales and margin per foot return to space THREATS: o Rising raw material costs from both food and non food will impact profit margins overall o International expansion o Lower available income will impact and strategic focus may need to change to lower priced basic products with less focus on higher priced brands suggesting a switch in price architecture. o UK structural change could spark a price war o Wal-Mart/Asda challenge STRENGTHS: o For Tesco to create unique products o To provide high level customer service o Presence in multiple retail markets o Increasing market share o Insurance o Tesco online o Brand value o As a business looking for continued expansion TESCO have reserve funds of credit coupled with income derived from property portfolio development funds. WEAKNESSES: o Reliance upon the UK market o TESCOs position as a price leader in UK markets can lead to reduced profit margins in order to retain the key price points on must have commercial items o Grocer outlets are not set up to operate as specialist retailers in specific areas of product which can be capitalised on by other smaller bespoke retailers o OPPORTUNITIES: o Further international growth o Statistics suggest TESCO is the third largest global grocer which indicates a level of buying power to ensure mainstream economies of scale. o The development of Tesco Direct through online and catalogue shopping will grow the use of technology, providing the launch pad for larger non food based products with moderate to high margin returns and less focus on sales and margin per foot return to space THREATS: o Rising raw material costs from both food and non food will impact profit margins overall o International expansion o Lower available income will impact and strategic focus may need to change to lower priced basic products with less focus on higher priced brands suggesting a switch in price architecture. o UK structural change could spark a price war o Wal-Mart/Asda challenge