GAP Analysis for TESCO :

Current Position
Retail market is the largest industry in UK presently, retail in grocery being a significant contributor to its
GDP. In such a situation, Tesco is the largest retailer in grocery, with 13% share in entire retail market.
It operates under the following banners Tesco Extra, Superstar, Metro and Express. Apart from these
supermarkets, Tesco is also involved in petrol business now as an independent petrol retailer, as well as
venturing with a strong hold in finance business.
In a dwindling economic situation, Tesco could not have a working PEST framework to plan ahead in
order to overcome the ill influence on demand.
Objectives
Considering its current scenario, Tesco is expected to continue to grow in food and non-food sectors as
well, owing to the diversity it aims to flourish in.
Tesco aims to fulfill customers demands on socio-cultural front (for example, stress on organic foods,
demands arising out of demographic changes etc)
Govts strict policies protecting the consumer, competition from rivals namely Iceland, Safeway, Asda
and Sainsbury, the product-switching tendency among customers and bargaining tendencies among
suppliers/customers do pose a threat to Tescos multi-dimensional growth. Hence, the primary objective
lies in removing these hurdles.
Action plan/ Recommendations
Wider ranges of products, growing space for supermarkets are some of the ways to be more innovative
in order to retain the apparent monopoly in retail business for Tesco.
Tescos dependence on UK market limits its scope so it can think of intervention in other markets in a
systematic way.
In order to make up for the counter-effect of Tescos high prices on its revenue, it must grab onto such
opportunities as growth of non-food sales, adopting technology more extensively and things like that.