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Tesco PLC (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Tesco PLC

Tesco (the group) is a leading retailer in the UK and is one of the largest food retailers in the world. It also sells non-food goods such as electrical goods and clothing. Tesco is headquartered in Hertfordshire, the UK and employs about 440,000 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Market presence
  • Strong performance of Tesco.com
  • Strong brand name

Weaknesses

  • High dependence on the UK and Europe
  • Weak inventory turnover

External

Opportunities

  • Growing online shopping in the UK
  • Growing music and video market
  • Opportunities in private label markets
  • Opportunities in India and other international market

Threats

  • Increased minimum wages in the UK
  • Rising food prices in the UK
  • Intense competition
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