Swot Tesco Essay

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Strengths * UK market leader and global scale Tesco is the UK’s biggest retailer, dominating both the food and non-food markets. Some 12% of all retail spending goes through its tills (about 30% of all food sales), which gives it huge advertising reach with customers, leverage with suppliers and access to talent. * Overseas strength Under the leadership of Sir Terry Leahy, Tesco built up a vast and highly profitable overseas empire, stretching from South Korea and Malaysia, to Hungary and Poland, and also embracing the US and China, across hypermarket, supermarket and convenience store formats. * Clubcard database and Dunnhumby Tesco was early into the loyalty card market in the 1990s, developing the Tesco Clubcard into a valuable marketing and promotional tool, thanks to the customer database analysis of its in-house data research business. Dunnhumby has helped Tesco stay close to its customers around the world. * Property strength Tesco has a valuable freehold-property portfolio and store land bank, both in the UK and overseas. It provides a stream of profits from sale and leaseback deals and a source of potential finance from IPOs and joint ventures. * Diversification into banking and services Tesco has built a profitable Services Division, at first focused on the insurance and telecoms markets, but now spreading into other financial services. * Online pioneer Tesco was an early pioneer of online shopping in the UK, via Tesco.com, and has always appeared to make useful profits from home delivery, extending into non-food and other markets through Tesco Direct, while Tesco’s click-and-collect capability and expertise is now being exported into Tesco’s overseas operations. Weaknesses * UK business mature and neglected Chief executive Philip Clarke inherited “long standing issues” in the UK that had built up during his predecessor Leahy’s

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