The Tesco.com Experience: Is Success at Hand? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Tesco.com Experience: Is Success at Hand?
The case focuses on opportunities and challenges for a traditional, bricks-and-mortar retailer to use the Internet as an added channel. A major implementation issue, which raised a heated debate among retailers, concerns Tesco.com's order fulfilment approach, based on in-store picked (rather than dedicated warehouses). It also insists on how can one make Internet retailing a profit-making story.
Authors :: Enders Albrecht, Tawfik Jelassi, Charles Waldman
Swot Analysis of "The Tesco.com Experience: Is Success at Hand?" written by Enders Albrecht, Tawfik Jelassi, Charles Waldman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tesco.com Tesco.com's facing as an external strategic factors. Some of the topics covered in The Tesco.com Experience: Is Success at Hand? case study are - Strategic Management Strategies, Customer service, Internet, Operations management and Strategy & Execution.
Some of the macro environment factors that can be used to understand the The Tesco.com Experience: Is Success at Hand? casestudy better are - – digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, central banks are concerned over increasing inflation, wage bills are increasing, technology disruption, increasing energy prices,
increasing commodity prices, there is backlash against globalization, etc
Introduction to SWOT Analysis of The Tesco.com Experience: Is Success at Hand?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Tesco.com Experience: Is Success at Hand? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tesco.com Tesco.com's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tesco.com Tesco.com's operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of The Tesco.com Experience: Is Success at Hand? can be done for the following purposes –
1. Strategic planning using facts provided in The Tesco.com Experience: Is Success at Hand? case study
2. Improving business portfolio management of Tesco.com Tesco.com's
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Tesco.com Tesco.com's
Strengths The Tesco.com Experience: Is Success at Hand? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tesco.com Tesco.com's in The Tesco.com Experience: Is Success at Hand? Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the The Tesco.com Experience: Is Success at Hand? Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Highly skilled collaborators
– Tesco.com Tesco.com's has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in The Tesco.com Experience: Is Success at Hand? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Strategy & Execution industry
– The Tesco.com Experience: Is Success at Hand? firm has clearly differentiated products in the market place. This has enabled Tesco.com Tesco.com's to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Tesco.com Tesco.com's to invest into research and development (R&D) and innovation.
Learning organization
- Tesco.com Tesco.com's is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Tesco.com Tesco.com's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Tesco.com Experience: Is Success at Hand? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Tesco.com Tesco.com's is one of the leading recruiters in the industry. Managers in the The Tesco.com Experience: Is Success at Hand? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Strategy & Execution field
– Tesco.com Tesco.com's is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Tesco.com Tesco.com's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Tesco.com Tesco.com's is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Enders Albrecht, Tawfik Jelassi, Charles Waldman can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Cross disciplinary teams
– Horizontal connected teams at the Tesco.com Tesco.com's are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High brand equity
– Tesco.com Tesco.com's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tesco.com Tesco.com's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Tesco.com Tesco.com's in the sector have low bargaining power. The Tesco.com Experience: Is Success at Hand? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tesco.com Tesco.com's to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Tesco.com Tesco.com's is present in almost all the verticals within the industry. This has provided firm in The Tesco.com Experience: Is Success at Hand? case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Innovation driven organization
– Tesco.com Tesco.com's is one of the most innovative firm in sector. Manager in The Tesco.com Experience: Is Success at Hand? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses The Tesco.com Experience: Is Success at Hand? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Tesco.com Experience: Is Success at Hand? are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Tesco.com Experience: Is Success at Hand?, it seems that the employees of Tesco.com Tesco.com's don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Tesco.com Tesco.com's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Tesco.com Experience: Is Success at Hand? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Tesco.com Tesco.com's products
– To increase the profitability and margins on the products, Tesco.com Tesco.com's needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Tesco.com Tesco.com's needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Products dominated business model
– Even though Tesco.com Tesco.com's has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - The Tesco.com Experience: Is Success at Hand? should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Enders Albrecht, Tawfik Jelassi, Charles Waldman suggests that, Tesco.com Tesco.com's is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Interest costs
– Compare to the competition, Tesco.com Tesco.com's has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Tesco.com Experience: Is Success at Hand?, in the dynamic environment Tesco.com Tesco.com's has struggled to respond to the nimble upstart competition. Tesco.com Tesco.com's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the The Tesco.com Experience: Is Success at Hand? HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Tesco.com Tesco.com's has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study The Tesco.com Experience: Is Success at Hand?, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study The Tesco.com Experience: Is Success at Hand?, is just above the industry average. Tesco.com Tesco.com's needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Opportunities The Tesco.com Experience: Is Success at Hand? | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study The Tesco.com Experience: Is Success at Hand? are -
Manufacturing automation
– Tesco.com Tesco.com's can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Creating value in data economy
– The success of analytics program of Tesco.com Tesco.com's has opened avenues for new revenue streams for the organization in the industry. This can help Tesco.com Tesco.com's to build a more holistic ecosystem as suggested in the The Tesco.com Experience: Is Success at Hand? case study. Tesco.com Tesco.com's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Tesco.com Tesco.com's can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, The Tesco.com Experience: Is Success at Hand?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Tesco.com Tesco.com's to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Tesco.com Tesco.com's to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Tesco.com Tesco.com's can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Tesco.com Tesco.com's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Tesco.com Tesco.com's can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Tesco.com Tesco.com's to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Tesco.com Tesco.com's in the consumer business. Now Tesco.com Tesco.com's can target international markets with far fewer capital restrictions requirements than the existing system.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Tesco.com Tesco.com's can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Tesco.com Tesco.com's can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Tesco.com Tesco.com's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Tesco.com Tesco.com's can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Learning at scale
– Online learning technologies has now opened space for Tesco.com Tesco.com's to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Threats The Tesco.com Experience: Is Success at Hand? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Tesco.com Experience: Is Success at Hand? are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tesco.com Tesco.com's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Tesco.com Tesco.com's has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Tesco.com Tesco.com's needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Environmental challenges
– Tesco.com Tesco.com's needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Tesco.com Tesco.com's can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Tesco.com Tesco.com's.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Tesco.com Experience: Is Success at Hand?, Tesco.com Tesco.com's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
High dependence on third party suppliers
– Tesco.com Tesco.com's high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Shortening product life cycle
– it is one of the major threat that Tesco.com Tesco.com's is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Tesco.com Tesco.com's needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Tesco.com Tesco.com's needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Consumer confidence and its impact on Tesco.com Tesco.com's demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Increasing wage structure of Tesco.com Tesco.com's
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Tesco.com Tesco.com's.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Tesco.com Tesco.com's will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of The Tesco.com Experience: Is Success at Hand? Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study The Tesco.com Experience: Is Success at Hand? needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study The Tesco.com Experience: Is Success at Hand? is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study The Tesco.com Experience: Is Success at Hand? is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of The Tesco.com Experience: Is Success at Hand? is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Tesco.com Tesco.com's needs to make to build a sustainable competitive advantage.