What Are The Weaknesses Of Tesco

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Tesco’s biggest weakness is its increasing of debt. As growing its network worldwide, Tesco has undergone into huge financial debt. Tesco has not been able to get rid off from debt in last year as compared to its competitors. Dues to this financial crises, Tesco has been withdrawn a series of products from the market. This has been concluded in a huge financial loss also, has been damaged its image in market.
The portfolio of the commercial network Tesco increasing day by day which is creating lots of opportunities in the market. In 2012, they opened more than 650 shops in which 440 were international. This global diversification could help the company in the improvement of his economy of scale and limiting to the minimum
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Tesco has created some political impact in their policies and if we talk about political analyses of Tesco then the first country comes up which is China. Tesco has eliminated all barriers to encourage the western companies. The main purpose for it to pass in the world that it may include the more profitable market which can consist of more than 1.3 million persons.
The strength of Tesco’s political analysis shows the agreement which was signed by Tesco to develop a series of joint companies for the establishment of commercial centers in China. This joint company included three commercial centers in China and also, included 18 supermarkets which were opened in 2010.
The economics factors are bit sign of worry for Tesco since they effect directly to buy of clients behavior. Although the economy of United Kingdom declared officially that country’s economy is in recession and due to this the positive aspect is that the clients to eat less and to eat in house that also offer opportunities for the retailers to increase its production and Tesco were on top in production.
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