Tesco and the changing retail environment.
1. DESCRIBING THE TESCO’S COMPETITIVE ENVIRONMENT IN THE UK MARKET.
The PESTEL analysis below analyses the uncertain and ever changing environment of Tesco in which it operates by identifying the different internal and external factors that has the most impact on Tesco’s operations.
1. Political Factors
After initiating new tax measures by the government of the United Kingdom which has led to increase in the VAT rate from 17.5% to 20% made a big impact on the sales revenue of Tesco. The aim was to increase the government revenue by $13 billion per year (BBC, 2011, n. p.). The increase in VAT has led to lower customer spending, which has made a negative impact on the sales revenue generated by Tesco. …show more content…
Tesco’s future success in international market depends on the following factors:-
Going online: Tesco is seeking to launch itself on the online web, with a focus on global sourcing.
Investing in hypermarkets: Tesco need to invest in hypermarkets instead of big Tesco retail stores as a whole sale service provider to make an impact in the retail market.
Interaction with customers: Tesco has to listen to its customers and should be willing to change because every market has a unique local flavour and it should be flexible too.
Strengthening existing operations: Tesco should focus on Strengthening existing operations, though it will continue to monitor wider opportunities.
Adapting to local culture: Respecting local culture, beliefs, attitude and customs will help to understand the requirements of the local market.
5 WHAT CHANGES IN THE BUSINESS ENVIRONMENT ARE LIKELY TO BE ON THE HORIZON FOR TESCO IN NEAR FUTURE?
Electronic devices: The electronic devices like smart phones will help Tesco to provide product information to their customers in hand whether they are offline or online. With the help of smart phones and tablets consumers have the web on their fingertips and can research anywhere and in the
1. DESCRIBING THE TESCO’S COMPETITIVE ENVIRONMENT IN THE UK MARKET.
The PESTEL analysis below analyses the uncertain and ever changing environment of Tesco in which it operates by identifying the different internal and external factors that has the most impact on Tesco’s operations.
1. Political Factors
After initiating new tax measures by the government of the United Kingdom which has led to increase in the VAT rate from 17.5% to 20% made a big impact on the sales revenue of Tesco. The aim was to increase the government revenue by $13 billion per year (BBC, 2011, n. p.). The increase in VAT has led to lower customer spending, which has made a negative impact on the sales revenue generated by Tesco. …show more content…
Tesco’s future success in international market depends on the following factors:-
Going online: Tesco is seeking to launch itself on the online web, with a focus on global sourcing.
Investing in hypermarkets: Tesco need to invest in hypermarkets instead of big Tesco retail stores as a whole sale service provider to make an impact in the retail market.
Interaction with customers: Tesco has to listen to its customers and should be willing to change because every market has a unique local flavour and it should be flexible too.
Strengthening existing operations: Tesco should focus on Strengthening existing operations, though it will continue to monitor wider opportunities.
Adapting to local culture: Respecting local culture, beliefs, attitude and customs will help to understand the requirements of the local market.
5 WHAT CHANGES IN THE BUSINESS ENVIRONMENT ARE LIKELY TO BE ON THE HORIZON FOR TESCO IN NEAR FUTURE?
Electronic devices: The electronic devices like smart phones will help Tesco to provide product information to their customers in hand whether they are offline or online. With the help of smart phones and tablets consumers have the web on their fingertips and can research anywhere and in the