Tesco is a public limited company that retails grocery and is involved in general merchandising of goods. The company was originated in East London in 1996 by Jack Cohen. The headquarters of this vast business empire are based in Cheshunt, Broxbourne, and Hertfordshire, England

Strengths

• Following the Wal-Mart and Carrefour Tesco has made its strong position being third largest grocery retailer in the world.

• The company owns the special status in United Kingdom being the largest supermarket chain there.

• The company is geographically diversified as it presents in fourteen countries not only cornering North America, Asia and Europe but also with huge market share of 30 percent in Ireland, Malaysia and Thailand.

• The company has marked a special importance in the product range related to music downloads, Petrol, clothing, books, furniture, DVD rentals, financial, internet services, and telecom services.

• The company’s stores have grown up to 4,811 localities.

• The strong brand name especially in cotton fair-trading around the world.

• The revenue of the company is £62.54 billion which is increasing every year along with addition of new stores in the supermarket chain.

• The human aid of the company is very high that is 472,000 and is providing lots of employment opportunities around the world.

• The best technology usage enhances sits marketing power with a commendable increase in online sales.

• The diversity is also visible in the formats of the stores having divisions like Tesco Homeplus, Tesco Extra. One stop, Tesco Metro, Tesco express and Tesco Superstores.

• The supply chain followed by the company is very efficient in case of cost that helps to bloom the confidence of suppliers association with the brands of the company.

Weaknesses

• A very strong dependency on the revenues generated by its U.K chain and decline in its market there would decline the overall scenario for the company.

• Business model followed is similar everywhere, however the amendment are needed according to the different geographies where it has its presence, in accordance with the culture.

• The sales objectives for the high price non essential items are not achieved according to the expectations.

• The financial disturbances are seen in the company because of bad debts.

• Lack of focus on specific markets because of entering all markets at the same time.

Opportunities

• Online scope for the products to be sold out without massing the outlets.

• New outlets planned for different countries along with the strategic alliance of the company.

• Fairing trading of cotton products, out breaking the sales especially in Germany.

Threats

• The competitors like Wal-Mart and Carrefour that are very well executed in performance. Especially at the time of acquisition of Asda by Wal-Mart.

• Changing government strategies regarding taxation.

• Unpredictable increase in operational cost because of increase in raw material costs.

• High labor cost expectation by the employee sector.

• Other supermarkets that are though not big but do cover the market share to the maximum extent.

References

• Finch, Julia (2 February 2010). “Tesco opens its first zero carbon store”. London: The Guardian.

• Moore, Alex; Leader, Rhondda (8 January 2009). “‘Tesco will make us a ghost town’”. WalesOnline.