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SWOT Analysis of Tesco

One of the strengths of Tesco is both goods and mall environment have high standard of quality control. The goods provided in Tesco is many, for example Daily necessities. Tesco have market presence in the world each Tesco has sufficient and diversification goods to satisfy the customers.

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Tesco has an own stockroom to keep the stock. Tesco has a system of positioning to place the goods. Customers can get their goods immediately without ordering. Clean and comfortable environment of Tesco also attracts many customers to buying goods at there.

Besides, the customers of Tesco are satisfied that they get value for their money. Tesco guarantees this by Price check survey, Club card scheme and Tesco range products. For the workers inside the Tesco, they are taught ways to serve customers politely and how to fulfill the need of customers successfully. Tesco is good in marketing expertise too. Tesco’s format of stores such as extra, home plus, superstores, express and teso. com gives the consumers the convenience and they are highly respected by the consumers.

Weaknesses. The weaknesses of Tesco are that it is still largely dependent on UK for its sales. it is doubtful if it will support fair-trade cotton clothing objectives. The business model that Tesco is using is suitable for UK and not for the rest of the world. Even though Tesco sales are growing from low priced items there is fall in sale of non-essential and high priced products. If fair-trade cotton clothing are perceived as non-essential, its sales objectives will not be achieved. Tesco has suffered from bad debt, credit card arrears and household insurance claims. This is financially debilitating.

Opportunities Tesco can exercise a high degree of buying power to ensure that it has economies of scale in its fair-trade cotton clothing line. The growth opportunities n Europe and Asia provides excellent opportunities for growth. Most importantly, the growth of online sales shows excellent opportunity for increasing the sales of Tesco. For example, growing online shopping in the UK. In Germany cotton clothing has good opportunity because it has the endorsement of Tesco brand; it has the marketing channels of Tesco, and the backing of an excellent product mix.

If fair-trade cotton clothing offers a good product for money it will get a good reception in Germany. Threats There are some competitors exist in market to substitute Tesco. Giant is an example. Giant provides Daily necessities too. In fact, Giant is not famous than Tesco in both goods and service. The goods sold in Tesco is many and even cheaper than Giant, but Giant is the one of competitors for Tesco. Besides, government regulation is one of the threats. For example, when government increase the food or goods cost, it will affect the customer of Tesco decrease.