SWOT Analysis of Tesco in UK

Tescos reputation for low cost products, can gain fair-trade cotton plant app atomic number 18l cheering market sh ar in the UK. Tescos maturation in the insurance sector provides financial potency to Tesco in UK. Another important factor is the increasing growth of online sales and fair-trade cotton clothing could be included in these sales. The Brand information of Tesco in UK is an important strength and go away help fair-trade cotton clothing. WeaknessesThe weaknesses of Tesco are that it is still largely dependent on UK for its sales. it is doubtful if it will support fair-trade cotton clothing objectives. The business model that Tesco is using is suitable for UK and not for the rest of the world. Even though Tesco sales are growing from low priced items there is fall in sale of non-essential and high priced products. If fair-trade cotton clothing are perceived as non-essential, its sales objectives will not be achieved. Tesco has suffered from bad debt, credit card arre ars and abode insurance claims. This is financially debilitating. OpportunitiesTesco can exercise a high degree of buying power to mark that it has economies of scale in its fair-trade cotton clothing line. The growth opportunities n Europe and Asia provides excellent opportunities for growth. Most importantly, the growth of online sales shows excellent opportunity for increasing the sales of Tesco. ThreatsIncreasing fair-trade cotton clothing prices can take on to lower sales and lower profits for Tesco. Change in consumer buying patterns n the UK because of change in technology can lead to loss of customers in UK.SWOT Analysis of Tesco in Germany Strengths The Tesco brand recognition gives it a reliable start for fair-trade cotton clothing in Germany. The Germans are known to avoid uncertainness, ambiguity and unquantifiable risk. In case of Tesco they are buying from a well recognized brand. The brand value of Tesco will work very well in Germany. Further, the global market place recognition of Retailer of the year 2008 provides substantiation to the German customer about fair-trade cotton clothing. WeaknessesGerman financial industry is very circumspect and will consider the debt of Tesco in the UK before it gives finance for store expansion for fair-trade cotton clothing in Germany. The reputation of Tesco for acquiring competing store chains may also be held against the company in Germany. skill is a risky move, and Germans are averse to risk. OpportunitiesFair-trade cotton clothing in Germany has good opportunity because it has the visage of Tesco brand it has the marketing channels of Tesco, and the backing of an excellent product mix. If fair-trade cotton clothing offers a good product for money it will get a good reception in Germany. ThreatsThe low priced fair-trade cotton clothing could lead to price wars. In addition, there can be low profitability because of combative moves for Tesco. Finally, international competitors like Wal-Mart cou ld add a cotton line in Germany to compete with Tesco.