Tesco- Tesco's Commitment

to Sustainability and
Community Development
By
P….
 Introduction
Tesco is a multinational grocery and general merchandise retailer based in the
United Kingdom. It is the third-largest retailer in the world, measured by gross
revenues, and the ninth-largest, measured by revenues.
The company was founded in 1919 by Jack Cohen as a group of market stalls. It
has grown to become one of the largest retailers in the world, operating in 12
countries across Europe, Asia, and North America (Chen 2022).
Tesco operates in retail, specifically in the grocery and general merchandise
sectors.
 Market History

• Tesco competes with other major retailers such as Walmart, Carrefour, and Amazon.In
terms of market share, Tesco holds around 27% of the grocery market in the United
Kingdom, making it the largest grocery retailer in the country (Chen 2022).
• The company also operates in other markets, such as Poland, the Czech Republic, and
Ireland, where it holds a significant market share.Tesco's business model is based on retail
and online sales, focusing on providing customers with a wide range of products at
competitive prices.
• The company also strongly emphasizes sustainability and corporate responsibility, with
initiatives such as reducing food waste and carbon emissions(Chen 2022).
 Tesco Purpose

• Tesco is a global supermarket chain that aims to provide customers with high-
quality products at affordable prices. The company's purpose is to create
value for customers, shareholders, and employees while contributing to the
communities in which it operates.
 Scope

• Tesco operates in over 12 countries, including the United Kingdom, Ireland,

Poland, the Czech Republic, Hungary, Slovakia, Turkey, China, Malaysia,
Thailand, and South Korea.
• The company offers various products and services, including groceries,
clothing, electronics, financial services, and more.
 PEST Analysis
• Political: Tesco operates in a heavily regulated industry and must comply with laws and
regulations related to food safety, labor rights, and environmental protection.
• Economic: The company faces competition from other supermarkets and online retailers and
must also manage fluctuations in currency exchange rates and commodity prices (Porter et al.
2017).
• Social: Tesco must consider changing consumer preferences and trends, such as increasing
demand for organic and sustainable products (Porter et al. 2017).
• Technological: The company must invest in technology to improve supply chain efficiency and
enhance the customer experience, such as through online grocery ordering and home delivery.
• Demographic Factors: The demographic makeup of the UK can also affect Tesco's brand
performance. Factors such as population growth, age distribution, and income levels can affect
consumer demand for Tesco's products and services(Porter et al. 2017).
 Porter's Five Forces Analysis
• The threat of new entrants: Moderate. The supermarket industry is highly
competitive and requires significant capital investment to enter.
• The threat of substitute products: High. Tesco faces competition from other
supermarkets, discount stores, and online retailers.
• Bargaining power of suppliers: Moderate. Tesco has a large customer base
and can negotiate favorable terms with suppliers, but must also consider the
impact of commodity prices and currency fluctuations (Porter et al. 2017).
• Bargaining power of buyers: High. Consumers have many options for
where to shop and can easily compare prices and product offerings.
• The intensity of competitive rivalry: High. Tesco competes with other large
supermarket chains and smaller regional retailers (Porter et al. 2017).
 SWOT Analysis

Strengths:
• Strong brand recognition and reputation for quality products
• Wide range of products and services offered
• Strong financial performance and profitability
 SWOT Analysis

Weaknesses:
• Dependence on a limited number of markets and product categories
• Limited presence in the online retail market
• The negative impact of currency fluctuations on international operations
 SWOT Analysis

Opportunities:
• Expansion into new markets and product categories
• Development of an effective online retail strategy
• Increasing focus on sustainability and social responsibility (Soegoto 2021).
 SWOT Analysis

Threats:
• Intense competition from other supermarkets and online retailers
• Changes in consumer preferences and trends
• Economic and political instability in markets where Tesco operates (Soegoto
2021).
 Conclusion

• Tesco is a well-established and successful retail company that operates in

various countries around the world. The company has a strong focus on
customer satisfaction and offers a wide range of products and services.
• Tesco's success can be attributed to its ability to adapt to changing market
trends and its focus on innovation and technology (Soegoto 2021).
• Despite facing some challenges, such as intense competition and economic
uncertainty, Tesco remains a dominant player in the retail industry and is well
positioned for future growth.
 References

• Chen, J.J., 2022. Tesco Plc. In International Cases of Corporate

Governance (pp. 27-44). Palgrave Macmillan, Singapore.
• Porter, K., Smith, P. and Fagg, R., 2017. Corporate strategy. In Leadership
and Management for HR Professionals (pp. 381-411). Routledge.
• Soegoto, F.A., 2021. Product development using SWOT
analysis. International Journal of Entrepreneurship & Technopreneur
(INJETECH), 1, pp.1-10.
Thank you