SWOT Conversion Essay Example | Topics and Well Written Essays - 1000 words

SWOT Conversion - Essay Example They thus provide impetus for strategic changes within the managerial and marketing processes for improved performance. As Marketing Manager of Tesco Plc, I would be evaluating the SWOT analysis tools of Tesco against that of its competitor, IKEA, UK, in its furniture segment. Overview of Tesco Tesco Plc. is one of largest global supermarket chains with workforce of 472000 strong people in more than 4811 outlets across 14 countries (tesco, 2010). As a leading food and non food supermarket, it has created a niche market position in UK and across the globe. Its non food segment, especially the furniture segment directly competes with IKEA which is a leading home furniture retailer with a global presence. Though a relatively recent entrant into this area, Tesco has been able to make significant inroad into this market and compete with the market giant like IKEA through sustained efforts to diversification based on changing preferences of people. Tesco strength lies in its strategic plan ning that has effectively relied on marketing tools like SWOT and Porter’s five force analysis to gain leverage against its competitors in the field. Critical analysis of SWOT theory vis-a-vis IKEA SWOT analysis IKEA’s major strength is its global brand with emphasis on sustainable business practice and cost consciousness. It extensively uses renewable materials through design innovation, reducing wastage and promoting environment conservation in its supply chain management. Tesco, on the other hand has long since been a promoter of sustainable development and has continuously strived for highly indigenous techniques for carbon footprints. It has increasingly introduced organic food and non food item in its ever widening product lines. It is committed to carbon neutral policy by 2050 and diligently helps its customers to considerably reduce their carbon footprints by 2020 (ibid). Tesco has also been a leader in providing its customers with quality products at very comp etitive prices. Tesco’s Clubcard is testament of its huge database of satisfied and committed clientele which boasts of over fifteen million active members! Clubcard is a unique way of rewarding its customers through discounts vouchers and reward points. It has in fact become one of major elements of competitive advantage against IKEA. The IKEA’s KPI or key performance indicator broadly relies on its IWAY process for defining its social and environmental compulsions for its products and its various supply chain partners. Tesco has formulated stringent guidelines under ETI or ethical trading initiatives that promote sustainable practices across all its business partners. IKEA’s design initiatives for its furniture and furnishing, is highly creative. NORDEN and LACK tables, OGLA chairs etc are exemplary examples of waste management. It has also refined its transportation logistics to reduce carbon footprints. TESCO’s ergonomically designed state of the art furniture are cost effective but it nevertheless needs to improve its waste management policies on production through more creative inputs. Not many of its items are made from waste but introduction of products made from paper mache has increasingly become popular amongst the masses. Tesco believes in forging alliances with local