In this analysis of Tesco supermarket, the author uses Porter’s Five Forces framework to try and understand the competitive forces that are influencing the profit potential of the UK supermarket industry. The five forces will be used to ascertain the extent of competition present in the industry order to determine industry attractiveness. According to Johnson et al, (2008), industries where all the five forces are high are not ideal to compete in.
Peyton, Mariam., 2022. Tesco Porters Five Forces Analysis 2021-2022. 123 Writing [online]. Available at:
APA
Peyton, M. (2022). Tesco Porters Five Forces Analysis 2021-2022. 123 Writing. Retrieved 14 March 2022, from https://www.123writing.com/free-sample/tesco-porters-five-forces-analysis-2021-2022
MLA
Peyton, Mariam. "Tesco Porters Five Forces Analysis 2021-2022". 123 Writing, 2022, https://www.123writing.com/free-sample/tesco-porters-five-forces-analysis-2021-2022.
CHICAGO
Peyton, Mariam. 2022. "Tesco Porters Five Forces Analysis 2021-2022". 123 Writing. https://www.123writing.com/free-sample/tesco-porters-five-forces-analysis-2021-2022.
TESCO PORTERS FIVE FORCES CASE STUDY
Key Learning Outcomes
- Use Porters five forces model to analyse an industry on the basis of the five competitive forces.
- Analyse the UK food retailing industry and how the five forces have affected Tesco and rival supermarkets and the impact on industry structure, attractiveness, and profitability.
- Understand how Tesco has managed to defend against intense competition from Aldi, Lidl and Sainsburys and the strategies it uses to create 'blue oceans' that are defensible, helping it capture market share and maintain competitive advantage.
1.0 INTRODUCTION
Tesco has been the UK's most dominant supermarket for more than two decades and it is still the biggest supermarket in the UK. But all is not plain sailing for the giant food retailer. Since 2017, the company has posted declining market share in the UK from a high of 30.9% in 2012 to the current 25.6% as of 2021 (see table 1). In this analysis, we will Porter’s Five Forces framework to try and understand the competitive forces that have been influencing the profit potential of the UK supermarket industry. The five forces will be used to ascertain the extent of competition present in the industry order to determine industry attractiveness. According to Johnson et al, (2008), industries where all five of Porter's forces are high are not ideal to compete in.
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