For the purpose of this essay, I will be examining Tesco and the external factors that influence it and its products. I will also be looking at two of Tesco's key competitors, those being Sainsburys and Asda to see how they try and gain a competitive advantage.
Tesco is a retailer of a multitude of products and services, although it primarily focuses on food and groceries. Initially based within the UK it now has stores in twelve different countries, five of which they are market leaders. Tesco's Core Purpose, as shown by their website is ?to create value for customers and to earn their lifetime loyalty.' They also put a lot of emphasis on people, those that shop with Tesco and those that work for them.
Sainsburys is a leading UK food retailer with interests in financial services and is one of Tesco's largest competitors. Their current Goal is to make Sainsburys ?great again', there focus being on healthy fresh food.
Asda is again primarily a food retailer and their mission statement, taken from Asda's website, "To be the UK's best value retailer exceeding customer needs. Always."
In the following paragraphs I will be conducting a PEST analysis of Tesco.
Political/legal
As stated by Kotler And Armstrong (2006), "Marketing decisions are strongly affected by developments in the political environment' and so Tesco and its rivals need to be aware of any new legislation that comes into play. A key issue that affects Tesco quite predominantly is that of Planning Permission, a heavily regulated law in the UK. With Tesco opening more and more super-stores across the UK, they now take up a total of 27.8 million square feet of space on sales area alone. This does not count in the stockrooms and car parks that come with each store. With such large store ...