Tescos

1. This journal is © Task 2.1-Blogger J.C.Suddaby
Receiv ed 26th February 2015
http://www.tesco.com/ Competitive Factors (Tescos)
Focusing on the competitive factors of the organisation, alongside their structure.
‘Tesco was founded in 1919 by Jack Cohen from a market
stall in London’s East End. Over the years our business has
grown and we now operate in 12 countries around the world,
employ over 530,000 people and serve tens of millions of
customers every week.’
(http://www.tescoplc.com/index.asp?pageid=11)
Tescos has innovated and adapted its stores and is now
recognisable globally, being an equally big supermarket as an
E-tailer
Tesco is a PLC
An organisation uses competitive factors to judge their position
in the market and industry. These factors they use are; the
economy, trends in the market, number of competitors, and
changes in the consumers.
Firstly, the economy currently is lower than the October-
November months, as the Christmas period is over and the
consumers have less disposable incomes than previously.
However, the UK has recently come out of a recession and has
increased since 2012.But other competitors have arisen
recently, such as Aldi and Lidi, offering lower prices, which is
attracting a large number of Tescos customers. Causing a
62.3% (from 75% in 2011) decrease in sales.
Tescos recently released a statement claiming a ‘250m profit
overstatement’, causing employees at management level, to
lose faith in the organisation, as they are no longer considered
as the supermarket giant.
Secondly, Tescos have used the trends in the market
effectively. Suiting the needs of their customers well, providing
a large quantity of goods, from electrical goods to food
supplies. They have also used the fact they sell clothes to their
advantage. Changing the style and range of this department, to
match the current trends and interests in the fashion industry.
F&F has been signed by Gok Wan, which helps endorse their
range, being a recognisable fashion designer.
Thirdly, Tescos, although they have struggled to maintain their
popularity through competitors, they have a competitive
advantage, as they are offering home delivery of goods and
having their organisation as both a supermarket and an E-tailer.
This of course offers convenience to their customers in
comparison to visiting the stores personally. It is also allows
them to offer lower/competitive prices, as less expense would
be needed on the rent of premises.
In terms of the location of the supermarket, Tescos have
numerous elements to consider. Such as the legal regulations
involved. A retail giant, such as Tescos, can’t open their store
where they please, they have to consult the government, and
there are government legislations in place, which organisations
such as Tescos have to follow.
When considering the location, as Tescos is a supermarket
giant, they need to ensure they pick a populated location to
attract the right mass audience. The rent of the premises is also
a consideration; however Tescos may not need to take this as
seriously as some of other smaller retailers, as their capital is a
considerable amount.
The location of a retailer is determined by not only the cost of
the construction of the store, but the current trends and interest
in the market. Along-side the current economic climate.
Bibliography
 http://www.tescoplc.com/index.asp?pageid=
 https://www.google.co.uk/search?q=tescos&safe=active&espv
=2&biw=1034&bih=875&source=lnms&tbm=isch&sa=X&ei=
BOruVJ6EGKLP7gawjIGwDw&ved=0CAgQ_AUoAw&dpr=
1#imgdii=_&imgrc=wg0n6ov6UQQ-
GM%253A%3BK2FhdfFKYFDaDM%3Bhttp%253A%252F
%252Fwww.tescoplc.com%252Fwatford%252Fimages%252F
tesco.jpg%3Bhttp%253A%252F%252Fwww.tescoplc.com%2
52Fwatford%252F%3B448%3B151
 http://www.rsc.org/Publishing/Journals/guidelines/Auth
orGuidelines/AuthoringTools/Templates/word.asp

2. ARTICLE Journal Name
2 | J. Name., 2012, 00, 1-3 This journal is © The RoyalSociety ofChemistry 2012