Tesco has been a successful retailer in UK with a market share of more than 30%. This has been a positive improvement considering the level of competition in the retail grocery sector. The company has over the years remained competitive and increasing its revenues every year. The ever increasing improvement in the company’s performance can be attributed to its ability to understand its threats, weaknesses and opportunities and act accordingly to realize organizational objectives.  A good management in an organization should be capable of taking advantage of the opportunities and strengths and at the same time take precautionary measures to deal with threats and weaknesses facing the organization (Dransfield & Needham, 2005).

For instance, Tesco has been endowed with several strengths which should be taken advantage of to the welfare of the organization. For example, it is crystal clear to almost everyone that the company has strong foundation as far as resources and capabilities are concerned. Tesco enjoys strong financial muscles which the organization has taken advantage of to exploit the opportunities in the economy. Through exploitation of the financial muscles has resulted to high increase in the use of technology in the operations of the organization. Various technological services have been adopted in the organization which has increased the sales significantly. Online marketing and the tesco.com has resulted to increased sales thus increasing overall performance of the organization. Through utilizing Tesco.com, which is one of the largest shopping services in the world? Online transaction grew to hit over 1226 Euros Use of technology has also brought about Tesco club card which has been essential in predicting the consumer buying behavior. The club card has also been critical in stocking and inventory management. The use of club card can only be successful after understanding the strengths and weaknesses of the organization (DuBrin, 2009). This has made the company remain competitive over the years.

Tesco has also been able to deal with the threat of potential competition effectively by taking advantage of its strengths. The level of competition within the industry has been very stiff with other established firms such as Asda, Sainsbury and Morrison. However, the company has been able to wade off competition from potential entrants by making it difficult for them to operate within the industry. The company has embraced technology to enhance its marketing strategies as well as products. The company has also used its strong brand image in ensuring differentiation and innovation of new products that becomes consumers’ favorite (Palepu & Healy, 2007).

Tesco has also been able to effectively deal with a threat of possible market concentration in UK. This can be very detrimental since the organizations operations could be terminated instantly.  However, Tesco has been able to deal with this threat by taking advantage of its strong brand name to expand its markets in other parts of the world apart from UK. The company opened more than 400 stores outside UK which played a significant role in revenue and market share increase. . Tesco has been able to launch various products, to suit the demand in the market. It has been able to open various stores, such as Tesco express, Tesco metro, Tesco extra, and Tesco superstore. In additional, Tesco has been able to operate fairly in the international market thus substantially increasing its market share (DuBrin, 2009).

It is also important to understand that Tesco has also been able to recover the global recession of 2008. Though the consumers buying power was significantly affected by the recession, Tesco has tried to maintain the high standards and profit levels over the years. Tesco took advantage of the UK’s government attempts to redeem the situation. It is understood that the government reduced interest rates significantly thus increasing the consumers spending power. Tesco has taken advantage of this by ensuring that its profits are increasing each and every year since 2010. Tesco has reported 10% rise in annual profit as at 2012 (Flensted, 2009). The growth is also experienced from international stores, with growth of up to 25%. Tesco stock continues to grow, reaching a market capitalization of 20.5 billion Euros as of 4^th August 2014. Tesco has also been able to deal with the threat of health conscience and lifestyle diseases very effectively. This has been achieved through differentiation of products and ensuring presence of organic food in all of its stalls.

References

Dransfield, R., & Needham, D. (2005). Applied business: AS level for OCR. Oxford: Heinemann,.

DuBrin, A. (2009). Essentials of management (8th ed.). Mason, OH: Thomson Business & Economics.

Flensted, R. (2009). What’s up, Britain?: Landeområdet Storbritannien (1. udgave, 2. oplag ed.). Kbh.: Gyldendal.

Palepu, K., & Healy, P. (2007). Business analysis and valuation (IFRS ed.). London: Thomson

 
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