Pestle Analysis Of Tesco

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Tesco is one of the biggest supermarket chains in the U.K. There are around 6,808 stores in the whole world and about 460,000 colleagues (Tesco, 2017). The purpose of the company is helping customers to get good quality of products which they can buy easily and great value (Tesco 2017). PESTLE ANALYSIS Political Factors In 2011, Tesco was against the law in term of the company was selling fallacious its strawberries. The company was selling its strawberries at full price only for seven days after that they reduced the price by half of them and they were selling at half price for three months (The Guardian, 2013). Tesco earned £2.3m profit from this promotion then consumer accused to Birmingham trading standards. Therefore, the company was…show more content…
In 2010, Tesco launched the self-scan machine. It is quicker and more convenient for customers. These can reduce the cost of Tesco because the company can decrease the number of workers (Daily Mail, 2010). Additionally, customers can buy products online and same day delivery service in the U.K. and one hour delivery service in London (The Guardian, 2017). Consumers prefer to buy products which is cheap and convenient. Consequently, Tesco is using the advance technology to fulfill customers need and increase the sale of the…show more content…
Tesco hires many workers from European countries and their salary are the same rates as British employees (The Guardian, 2013). SWOT Analysis Strengths Tesco has many strengths. According to Telegraph (2008), Tesco has a strong brand name which is the most significant retailer in the U.K. This can attract a lot of customers. The main reason of these are good quality of product at the cheap price so the company has many loyalty customers which is demonstrated from a big amount of the Clubcard holders (Campaign, 2009). Furthermore, the company has Tesco express and Tesco metro stores which are located in town, these are more convenient to shopping for buyers (Schiraldi, Smith and Takahashi, 2012). Weaknesses Tesco's benefit has been affected by terrible debt from credit cards and large amounts of household insurance claims (Telegraph, 2014). Secondly, Tesco desires to invest a big amount of cash in new web technologies and IT, in addition to store restoration, deflect cash from decrease the price strategies (Wood and Gibbs, 2014). Moreover, the Tesco share price dramatically dropped to 173.60 GBP at 30th November 2014 from 303.55 GBP at 29th November 2014 after that Tesco share price has fluctuated and it cannot rise at the previous time (Bloomberg,
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