Swot Analysis of Tesco in Uk: Essay

998 WordsJan 25, 20114 Pages
SWOT Analysis of Tesco in UK: Strengths; Tesco’s reputation for low cost products, can gain fair-trade cotton clothing substantial market share in the UK. Tesco’s growth in the insurance sector provides financial strength to Tesco in UK. Another important factor is the increasing growth of online sales and fair-trade cotton clothing could be included in these sales. The Brand recognition of Tesco in UK is an important strength and will help fair-trade cotton clothing. Weaknesses: The weaknesses of Tesco are that it is still largely dependent on UK for its sales. it is doubtful if it will support fair-trade cotton clothing objectives. The business model that Tesco is using is suitable for UK and not for the rest of the world. Even…show more content…
Weaknesses: German financial industry is very circumspect and will consider the debt of Tesco in the UK before it gives finance for store expansion for fair-trade cotton clothing in Germany. The reputation of Tesco for acquiring competing store chains may also be held against the company in Germany. Acquisition is a risky move, and Germans are averse to risk. Opportunities: Fair-trade cotton clothing in Germany has good opportunity because it has the endorsement of Tesco brand; it has the marketing channels of Tesco, and the backing of an excellent product mix. If fair-trade cotton clothing offers a good product for money it will get a good reception in Germany. Threats: The low priced fair-trade cotton clothing could lead to price wars. In addition, there can be low profitability because of competitive moves for Tesco. Finally, international competitors like Wal-Mart could add a cotton line in Germany to compete with Tesco. BIDGET SHOING FAIR-TRADE COTTON CLOTHING LAUNCH EXPENSES |Items |Expense (£) In | | |Millions | |Product Sourcing Expense |1.2 | |Cost of Display |2.3 | |Cost of Advertising |250 |

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