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It is generally assumed that Tesco has been a dominant player in retailer industry and probably is the biggest player in the market within the UK. Tesco is one of the largest food retailers in the world. In addition, the group also sells non-food items, including electrical goods, home entertainment technology and clothing. Tesco is the largest retail operating group in the UK. The group’s leading market position in the UK enhances its brand, provides economies of scale and makes it easier for the group to launch private label brands. However, intense competition in both domestic and international markets could adversely affect its profitability. The group recorded revenues of £42,641 million during the fiscal year ended February 2007, an increase of 8.1% over 2006. The operating profit of the group was £2,648 million during fiscal year 2007, an increase of 16.1% over 2006. The net profit was £1,892 million in fiscal year 2007, an increase of 20.5% over 2006. (www.datamonitor.com)
However, over the past few years, Tesco’s operations have expanded into newer markets through both geographic expansion as well as extension of the product line (Tesco, 2006a). This implies that while Tesco has successfully capitalized on the growing urban market in other European and Asian countries (Tesco, 2006a) by launching its chain of stores in these countries, it has also stepped into newer sectors by providing financial services, mobile services, fuel, apparel, broadband services, multimedia, books and, very recently, software products (Tesco, 2006b).
PESTEL Framework
The PESTEL framework is tool to assist the macro-environmental analysis of a business entity by addressing the Political, Economic, Socio-demograp ...