Strategy that Tesco can undertake to help it achieve this core element

Tesco Company was among the United Kingdom’s most popular and trusted brands
(Tesco, n.d.). This paper employs porter’s five forces model and SWOT analysis to assess
Tesco’s environment, detailing the best strategy with which the retail company could apply to
gain and retain sustainability.
Porter’s Five Forces Analysis
This model attempts to evaluate five autonomous forces that establish the extent of entire
competitions in the industries (Dudovskiy, 2016). The following context represents an analysis
of Tesco
i) The threat of Substitute Commodities
Tesco main stores and supermarkets sell a huge variety of products that are categorical and
highly comprehensive. As a result, the threat of substitute commodities can be regarded as
irrelevant to its sustainability
ii) Rivalry from Competitors
The high degree of advertising and differentiation in the grocery and food industry renders
Tesco’s competitors a significant threat to the company’s profitability.
iii) Suppliers’ Bargaining Power
Tesco’s suppliers have a low bargaining power as the company has a high bargaining power,
retains numerous vendors and does not employ switching costs in the supermarket chain.
Additionally, the company has been criticized for maltreatment of suppliers hence impacting
Tesco negatively (Business Case Studies LLP, n.d.).

iv) Market Entry Barriers

Tesco usually encounters industry penetration problems such as high levels VAT, elevated
minimum wages, quotas, and total ban.
v) Buyers’ Bargaining Power
Tesco’s primary market constitutes clients who have sufficient money to buy their products in an
attempt at satisfying their desires.
SWOT Analysis
This tool evaluates organizations’ or industry’s opportunities, strengths, weaknesses, and threats
(Hoad, 2017). SWOT can be employed to assess Tesco’s international retailing power.
i) Strengths
Tesco has excellent customer service, it can be considered as leading retail platform, has
significant cash reserves, has considerable brand equity, and has improved its technology in all
its operations.
ii) Weaknesses
Some of Tesco’s subsidiaries are vulnerable to specific external factors such as eroded profits,
intense price wars, poor market research, the high cost of inventory, and inability to focus on one
market.
iii) Opportunities
Tesco can form strategic alliances and joint ventures with other companies, both locally and
globally. Also, the company can exponentially grow its online marketing and engage in private
labels.
iv) Threats
Tesco faces threats such as economic recessions, abruptly changing technology, increased food
pricing, dynamic labor market, increased cost of raw materials, and stiff government regulations.

Strategy
Tesco can position a new brand role for the overall organization in an attempt to initiate
and drive transformations from the internal to the external environment (Alam, 2013).
Additionally, quality improvement departments can increase trust by improving quality and
differentiation and establishing foundations of “helpfulness” to local and international clients.
For instance, they could set up a giant Superstore (a large supermarket) whereby clients buy
everything at the same location.
Conclusion
Tesco faces a problem of positioning its brands and reputation of the overall organization. Tesco
should consider implementing a good overall strategy if they were to control the market share
from its fast-rising competitors and in elevating quality and differentiation.

References

Alam, J. (2013). An analytical case study on existing corporate communication strategies of
TESCO PLC, UK.
Business Case Studies LLP. (n.d.). Conclusion - Vision, values and business strategies - Tesco |
Tesco case studies, videos, social media and information | Business Case Studies.
Retrieved from https://businesscasestudies.co.uk/tesco/vision-values-and-business-
strategies/conclusion.html
Dudovskiy, J. (2016, May 16). Tesco Porter's Five Forces Analysis - Research-Methodology.
Retrieved from https://research-methodology.net/tesco-porters-five-forces-analysis/
Hoad, A. (2017). Making Tesco great again. Retrieved from
https://www.campaignlive.co.uk/article/making-tesco-great-again/1444884
Tesco. (n.d.). Tesco Corporation - Corporate Strategy. Retrieved from
http://ir.tescocorp.com/phoenix.zhtml?c=118467&p=irol-homeprofile