Weaknesses Of ASDA And TESCO

ASDA and TESCO have a variety of overlapping strengths, which are derived from their similar overall business structure and size, however, there are also significant differences in terms of external forces on the brand, especially, and strategic positioning which can be derived from a comparative SWOT Analysis.
Figure 1: SWOT In terms of strengths, TESCO has a very strong market position, holding more than 28% of the market shares in the grocer sector (Market Watch, 2016). This, in combination with the variety of store front styles that the brand is using, places them in good stead to continue to capture a large percentage of the total revenue in their market. In contrast, however, ASDA is offering a more diversified total line of products, or market offerings, which means that they are not only competing in the grocery niche but other niches as well. However, they are seen as a big-box store, and their failure to provide other store front styles is a major weakness, as big box stores are generally faltering across the UK in favor of stores with a more home-town feel (Hayward, 2015).
Further, while TESCO is technically an international brand, it still heavily relies on UK income to support it’s

As both brands have offered a low-price guarantee of some kind, they are continually lowering price points in order to offer customers the best deal, in a bid to retain loyal customers, and gain new sales, however, this means that they are significantly reducing their overall profitability, which could pose a financial weakness long term (ASDA Price Guarantee, 2016; TESCO Brand Guarantee, 2016). Further this can block their access to enter the international market, and has specifically posed a weakness for ASDA, because their brand policies will not allow them to inter markets where regulation prevents them from price cutting or matching with local