1 Tesco PLC was founded in 1919 by Jack Cohen (En.wikipedia.org,
2018). Tesco PLC is a British national and international grocery and general
merchandise retailer (Slideshare.net,
2018). Their headquarters is based in Welwyn Garden City, Hertfordshire,
England, United Kingdom (Slideshare.net,
2018). Tesco is currently the third largest retailer in the world measured by
profits and the ninth-largest retailer in the world measured by revenues (Thenews.com.pk,
has stores in 12 countries across Asia and Europe and at the date of January 5th,
2018, is the grocery market leader in the UK where it has a market share of
around 28.4% (En.wikipedia.org, 2018). Tesco
currently has a share price of 209.70p (January 5th, 2018). (Uk.finance.yahoo.com,
2 Strengths. Tesco is the biggest retailer in the UK with
a grocery market share of 28.4% (En.wikipedia.org, 2018). The second largest
retailer in the UK is Sainsbury’s with a market share of 15.8%, closely
followed by Walmart-owned ASDA with a market share of 15.3% (BBC News, 2018).
Having a higher market share puts companies at a competitive advantage. Tesco
having the highest market share in the grocery market puts them in a good
position to receive better prices from suppliers, as their larger order volumes
increase their buying power (Investopedia,
2018). Increased market share and greater production are a brilliant
combination to help decrease a company’s cost to produce a product/unit due to
economies of scale (Staff, 2018).
Tesco generates added benefits from its Clubcard in
different ways. Firstly, Clubcard is persuasively used as a tool to increase
consumer retention and consumer loyalty, this is where consumers collect one
point for each £1 spent (Dudovskiy, 2018). These consumers would then receive a
statement and coupons to the value of points they have generated themselves.
Weaknesses. Tesco has grown to become a large company with
a wide range of products, diversified into different categories such as food, insurance,
fuel, financial etc (UKEssays, 2018). Trying to tackle all these different
market types can be challenging.
(2018). Tesco’s global number of stores 2017 | Statistic. online Statista.
Available at: https://www.statista.com/statistics/238667/tesco-plc-number-of-outlets-worldwide/
(2018). Economies Of Scale. https://www.investopedia.com/terms/e/economiesofscale.asp
Wood, Z. and
Gibbs, S. (2018). https://www.theguardian.com/business/2014/may/07/tesco-to-launch-own-brand-smartphone