Tesco Report 第二部分
Introduction
Tesco Plc, a British grocery and general merchandise retailer is a multinational company with a team of over 510,000 persons in 11 countries across the European and Asian markets. The retailer has been in operation since 1919 with its current headquarters at Tesco House, Welwyn Garden City in Herfordshire, England. Listed in the London Stock Exchange, Tesco makes part of the FTSE 100 Index with a primary listing and trading as LSE: TSCO. The business website for the company is www.tescoplc.com
Strategic Analysis
Tesco Plc is selected for this analysis due to some major factors that have worked against the business. After the company’s profit overstating scandal a lot more externalities hit the company resulting into operational crisis and failure of some strategies. A major issue arises from a damaged brand and eroded stakeholder confidence as an ethical issue. The business has also been experiencing intense competition from Aldi and Lidl, the German discounters (Kedar, 2016).
Industry Analysis
Having withdrawn from their USA venture in the recent past, Tesco is only found in eleven more markets now which include the UK, Ireland, Hungary, Thailand, Malaysia, Slovakia, Poland, Czech Republic, India, China, Turkey and Switzerland. The firm is in the retailer industry and segmented under ‘consumer defensive’ sector in the stock markets. Being a multinational business, the competitors of Tesco Plc differ from one market to another. In the UK for instance, Tesco has always been in ‘the big four’ category where the rest of the members are ASDA, Morrison’s and Sainsbury. ASDA was the second largest store in 2015 with less number of stores at slightly over 600 with a market share of 16.2%. Sainsbury takes the third ranking as the largest grocer in the United Kingdom market and customers rank it as the highest-quality store as compared to the rest allowing for premium charges. Morrison’s competes favourably in the sector with a higher participation in the food production where it comes fourth in the UK market at 11.4% market share.
Other competitors in the UK that Tesco have to keep a close eye on are German Aldi and Lidl stores which seem to be growing larger day by day as they gain more space in the UK market (Kedar, 2016). The two built a total of 100 stores in the 2014-2015 period while Tesco built just four stores in the same period. By closure of the year 2015, Tesco had UK’s largest market share at 28.4% which was a decline from a previous 30.2%. A summary of the market share distribution is as shown below.
