Utilisation of Porter’s Five Forces Model in Evaluation of a New Market with Reference to Tesco

Jeewan Pudasaini
Greenwich University

BA (Hons) in Business Studies 2011

Utilisation of Porter’s Five Forces Model in Evaluation of a New Market with Reference to Tesco

Jeewan Pudasaini
Blake Hall College

Submitted To
University of Greenwich in accordance with the requirement of BA (Hons) in Business Studies

December 2011

Word count: 2905

Contents

Introduction
1. Porters’ Model: 4 1.1 Threats of new entrants: 4 1.2 Degree of rivalry: 4 1.3 Threats of substitute: 5 1.4 Suppliers’ power: 5 1.5 Buyers’ power: 5
2. Tesco 6
3. Application of Porters’ Model in Tesco with respect to new …show more content…

Although other competitors like ASDA and Sainsbury have decided to go with the same level of pricing and promotions in new market, the key element that kept Tesco at the top most position is due to its good supplying capacity having good resources of the materials (TESCO, 2011).
Caring about the customers and staff helps in the playing an active role in the communities is mainly focused by Tesco. Caring the environment, responsible selling of products and services, active participation in local communities, provision of healthier choices for the customers along with creation of good jobs and careers tends Tesco to grow its market even in the new environment. Along with its retailing business, Tesco has entered in banking and oil sector which is a new market where it has to face a large number of competitors like Lloyds TSB, Barclays in banking sector and BP, Shell in oil sector. In order to cope in this competitive market, Tesco needs to broaden its strategy with further enhancement of availability almost everywhere (TESCO, 2011). This can be done with the competitive pricing and promotion of its product and service. Induction of new features and availability of most of the elements from grocery, clothing to electronic items has eventually broadened the market of Tesco. Since customer usually prefer to buy most of their items in single for their ease which is the main considered point adopted by Tesco to proliferate its business