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Tesco ( business environment analysis)

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Monaghan (2014) argues that due to fierce competition among retailers in the UK prices of numerous items are moving southward. Pople have become more price conscious preferring convenience stores over super malls. Otimal packing size is preferred over large standard size offered traditionally. Tere is no doubt that Tesco is facing tough challenges from numerous players operating in the UK retail market. T be specific, i the UK, Sinsbury, Adi, Mrrisons and Lidl are major competitors of Tesco. De to low prices offered by Aldi and Lidl, Tsco has losing its market share consistently.

Tsco is feeling pinch of low-price model of Aldi in its business as any price reduction to maintain market share will lead to lesser gross margin (Butler, 2014). Wile Aldi and Lidl are regional players, teir expansion programme is likely to put Tescos dominance in jeopardy (Creasey, 2014). Gobalisation has opened up new vistas for businesses including super chains. Tsco competes with many large players across the world. De to economic recession, cmpetition in retail business has become so fierce that Tesco had to up its US and Japan operations a few years back.

Rtail is also affected significantly by government and industry regulatory policies that include food hygiene, halth and safety, eployment law, cnsumer protection, acohol licensing, ae restriction on employment and so on. I is important to note that the UK retail industry employs 3 million people and the industry pays over £17. 5billion of the taxes to the UK government in terms of VAT, Ntional insurance, Bsiness rates, ad Income tax. Oline retail sales have reached to almost 10% of retail sales in the UK amounting to over £29 billion Skills, 2013).

Wile there are opportunities, geat dangers lie ahead, i all locations, fr small and big retailers as well. Taditional business models are under threat from e-commerce and online offerings backed by money back guarantees across the world. Crrently, cstomers have much wider options and choices for shopping at the prices that were never heard of previously. I Poland, fr example, cnsumers prefer to patronise convenience stores rather than buying from Tescos out-of-town hypermarkets. Pople prefer shopping from closer to their homes rather than driving long to...

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preview essay on Tesco ( business environment analysis)
  • Pages: 8 (2000 words)
  • Document Type: Essay
  • Subject: Business
  • Level: Undergraduate
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