Tesco Pestle Analysis & Swot Analysis of Tesco PLC by HND Assignment Help

Comprehensive Tesco Pestle Analysis & Swot Analysis of Tesco PLC

Tesco PLC, established in 1919, has grown into one of the world's largest retailers. This article delves into the Tesco Pestle Analysis & Swot Analysis of Tesco PLC to comprehensively understand the factors influencing its business strategy.

Tesco Pestle Analysis

Political Factors
One significant political change in the UK was the increase in the VAT rate to 20% in 2011, aimed at boosting government revenue. However, this reduced customer spending, affecting Tesco's profits (Feys & Probert, 2015). Additionally, the government proposed a fat tax to combat obesity, prompting Tesco to launch a new healthy food range.

Economic Factors
The financial crisis impacted the UK's economy but has since rebounded, with a GDP growth rate of 2.7%. This economic growth is positive for Tesco, indicating a growing supermarket industry.

Social Factors
Tesco has adapted to societal changes by offering products through an online platform, catering to the aging population's preference for online shopping (Newton, 2014). Despite this, Tesco faced criticism for not providing quality products after the horsemeat scandal.

Technological Factors
Technological advancements are crucial for business success. Tesco has leveraged mobile technology to enhance distribution services and allow customers to select their preferred wine (Barney, 2017). The emergence of disruptive technology presents both opportunities and challenges for Tesco.

Legal Factors
Tesco is impacted by the UK's standard agricultural policy, which does not revisit direct subsidies, leading to potential fines for pressuring agricultural suppliers to sell at lower prices.

Environmental Factors
The melting of Arctic ice has highlighted environmental concerns. To address these issues, Tesco has initiated a program focusing on energy consumption and greenhouse gas utilization.

Swot Analysis of Tesco PLC

Strengths
- Broad Customer Base: Tesco serves diverse customer segments, reducing dependence on any single segment.
- Licensing Agreements: The company holds various patents and licenses, attracting collaboration and preventing easy imitation of its technologies.
- Broad Product Portfolio: Tesco offers a wide range of products and services, catering to a comprehensive customer base.

Weaknesses
- Concentrated Operations: Tesco's operations are heavily concentrated in specific regions like Canada, the UK, Mexico, and the US.
- Controversies: The company has faced several controversies, including the horsemeat scandal and defending infringement claims.

Opportunities
- High Market Growth: Tesco can benefit from the growing market, especially in the top drive market over the next five years.
- Acquisitions: The company can enhance its operations by acquiring specific processes and companies.

Threats
- Risk in the Oil and Gas Industry: Tesco faces significant risks related to damages from exploration and production applications.

Conclusion
Understanding Tesco PLC's PESTLE and SWOT analysis provides valuable insights into the factors influencing its business strategy. These analyses highlight the opportunities and challenges Tesco faces in the ever-evolving market landscape.