Tesco's business strategy and current market position

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Carmen Lao

Tesco current market position

Tesco is one of the world's leading international retailers. Since the company first used the trading name of Tesco, in the mid 1920s, the group has expanded into different formats, different markets and different sectors.

The principal activity of the group is food retailing, with over 2,500 stores worldwide.

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SWOT analysis of Tesco

Key target market

Tesco’s key target market is the public. Its core purpose is to create value for all customers to earn their lifetime loyalty.

Their success depends on people, the people who shop with them and the people who work with them. If their customers like what they offer, they are more likely to come back and therefore results in repeat business

Main competition

Sainsbury was the UK's biggest grocer until 1995, but was recently relegated to third position behind Tesco and Asda.

Morrisons is another competitor of Tesco, it is currently struggling to absorb Safeway and in 2004, issued its first profit warning in 37 years, leaving Asda as Tesco's only really credible UK rival.

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Asda, owned by US corporation Wal-Mart since 1999, is the only supermarket with the potential to become a thorn in the side for Tesco. Wal-Mart, with global sales of $256bn in 2003, is the biggest company in the world with annual sales eight times bigger than Tesco's.

The external factors that have impacted and will continue to impact on the business in the future

For example, in UK, Tesco's stores are divided into five formats, differentiated by size and the range of products sold

One of the external factors that it have impacted and will continue to ...

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