Tesco Strengths and Weaknesses
Strengths
Below are what I consider to be Tescos strengths.
Great leadership
Tesco has enjoyed the leadership from one of the best leaders in the retail world, Sir Terry Leahy. Since taking office as the CEO in 1997, Sir Terry Leahy has nailed the business with eye catching precession. He hasnt put a foot wrong in the last 10 years and sent Tesco into the stratosphere with consistently record breaking profits.
Buying power
Tesco could not have become the number one retailer in Briton in the time scale it did without buying other retailers. Tesco showed its expansionary zeal early on by buying up rival shops. These takeovers together with its marketing strategy helped Tesco to overtake Sainsburys as the UKs largest food retailer in 1995. Being the biggest player in the retail market, Tesco now has the opportunity and potential to buy the stores that are failing due to the current economic downturn and expand in Briton as well as in countries where it hasnt got a strong presence.
Good strategy
Tesco has a well-established and consistent strategy for growth, which allowed it to strengthen its core British business and drive expansion into new markets. The rationale for the strategy is to broaden the scope of the business to enable it to deliver strong sustainable long-term growth by following the customer into large expanding markets at home such as financial services, non-food and telecom and new markets abroad.
Consumer confidence
Tesco customers are satisfied that they get value for their money. Tesco guarantees this by Price check survey, Club card scheme and Tesco range products.
Multi format stores
Tescos format of stores such as extra, home plus, superstores, express and teso.com gives the consumers the convenience and they are highly respected by the consumers.
Weaknesses
As with any organisation, Tesco has its weaknesses and confronted