Swot Analysis Tesco s Cut Throat Competition

In today ´s cut-throat competition, the marketplace shows us that any type of business, no matter their previous success, may fail at any moment. For over 30 years, Tesco remains one of the biggest retailers worldwide. However Tesco has suffered a dramatic decrease in its market share and profits (Ruddick, 2015). To avoid this, SWOT and PESTLE analysis needs to be constantly updated (Marcousà © et al. 2003: 61). According to Marcousà © et al. (2003:61) a SWOT analysis â€Å"identifies internal strengths and weaknesses of the business, and highlights the external opportunities and threats†. Mullins and Christy (2013:91) state, â€Å"PESTLE analysis is a technique of analysing the external environment influences — this includes the Political, Economical, Socio-cultural, Technological, Environmental and Legal.† In this essay, the importance of SWOT and PESTLE analysis will be explained by assess Tesco ´s financial situation. After first explaining the importa nce of both analyses. Then, it will briefly explain Tesco ´s background. Finally, it will carry out a SWOT analysis on Tesco in order to explain its current financial situation. SWOT and PESTLE analysis needs to be constantly updated in order for any business to remain competitive. â€Å"SWOT analysis stands for Strengths, Weaknesses, Opportunities and Threats† (Needham and Dransfield, 1995:232). Surridge and Gillespe (2005: 39), state that â€Å"opportunity† refers to the future areas that a business can develop, while â€Å"threats† are factors thatShow MoreRelatedPart Strategic Environment Essay1904 Words   |  8 Pagesenvironment 1. Introduction Tesco is a leading multinational grocery and general retail company based in the United Kingdom (2015). Founded in 1919 by Jack Cohen it has grown to have 6,784 stores in 12 countries with a total revenue of  £63.557 billion in 2014. Statista shows that Tesco currently holds the highest market share in the UK with with 28.7% followed by Asda at 17% (2015). 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