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Task Sheet

In: Computers and Technology

Submitted By Adztastic
Words 336
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In this task I am going to identify some of the competitive factors in the retail environment Tesco faces and the internal and external changes they need to face. I will also identify the competitors of Tesco, their market position, barriers to entry and new retailing concepts. The aspects of government policy concerning planning guidance for new store locations, specifically the influence of Planning Policy Statements. Lastly I will explain the retailer's way of working which may be determined by government.

Tesco's competitors are Sainsbury's, Asda and Morrisons. These stores constantly battle against each other for the biggest market share. The reason why Tesco competes with other stores is because they all sell the same or similar products so they all compete through best offers and low prices. They don't let other new businesses get in their way, therefore Tesco has been spending large amounts of money on the development of their existing infrastructure. They compete on things like who sells their products for the lowest prices. For example, because they are such a large company Tesco can always negotiate the best competitive prices with their suppliers and their own brand product manufacturers when compared to small food chains.

If a new technology is introduced it will affect Tesco's performance. Because their present employees will have to either learn how to operate the new systems or leave the job. Tesco doesn't want to lose their employees because they are walking out with the skills and qualifications they had provided them with.

Share of Leading Players in UK Food Retail Market, Tesco remains the top player with a share of 24% in 2012. Last year Tesco's market share decreased as well giving the chance to other retailers to complete for example, ASDA to catch up. As well as that Tesco was caught up in negative media coverage for having an...

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