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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Tesco's and Porter's Five Forces

Tesco's and Porter's Five Forces

Q Using Tesco as an example, how you think that Michael Porter’s Five Forces helped or hindered Tesco with its U.S. strategy?

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Porter’s Five Forces helped Tesco with its U.S. strategy in a proper manner. Threats of new entrants are high for Tesco and this company has focused innovating new products and services for keeping this particular threat lower. For Tesco, the bargaining power of suppliers were high as the retail industry on the United States was already strong. Therefore, the suppliers were powerful and they used their negotiation power, therefore, the overall profitability of Tesco was lowered.