Swot Analysis : Tesco 's Stock Market Share Using The Swot And Pestle Analysis

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The main purpose of this essay is to assess Tesco’s decline in market share using the SWOT and PESTLE analysis. In doing so, the individual components of SWOT and PESTLE analysis are applied to Tesco. SWOT analysis is a method or ‘framework’ used for business analysis. It serves as a useful tool for companies, thereby aiding their evaluations, giving them clarity in direction as well as the ability to strategies with others to make well-informed choices and decisions. In other words, it is a way of analysing a business, its resources and environment (Riley 2014). The SWOT acronym stands for Strengths, Weaknesses, Opportunities and Threats (Dudovskiy 2012). These four elements aids in assessing the company both internally and externally.…show more content…
Political factors include taxes, Economic factors include inflation, Social factors include culture, Technological factors include research and development, Legal factors include various regulations and Environmental factors include pollution. (Business ball 2015) The factors highlighted above are largely external, hence; PESTLE is a tool that can be used together with the SWOT framework, particularly in evaluating the opportunities and threats open to a company. (Business ball 2015) Tesco is one of the largest retailers on earth and has its stores in 12 countries around the world. It is a public limited company this is; a business with limited liability and usually a wide spread of shareholders (Allan. P 2013:40). Tesco has the most extensive and widest range of food amongst retailers in the UK. Its two main brands are its Finest and Everyday value, with each selling over £I billion per year. It has about 3,561 stores, including franchises in the UK. (BBC) Surridge (2011:46) states that Market share measures, the sale of one product or businesses as a percentage of the total market share. AboulElgheit (2013) highlights the fact that Tesco is ‘losing ground’ in the UK, which indicates that it has been losing market share to its ‘competitors’. Over the past three months, Tesco sales have declined and now holds 30.9% of the market to 28.8%, this drastic fall occurred between the year of August 2012 to August 2014, which means that Tesco lost share each year.

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