This is so because success is based on an organization's ability to create, rather than predict the future by developing those products that will literally transform the way the world thinks and view it self and the needs (Kanter 1995:71).
Within the context of today's global competition, businesses and firms no-longer compete as individual companies but try to corporate with other businesses in their activities (Wu & Chien 2007:2). These researchers went further to argue that, this strategy has become quite common in many businesses including the retail chain stores. The conventional vertical integrated company based business model is gradually being replaced by collaborative relationship between many fragmented, but complementary and specialized value stars and constellation (Wu & Chien: 1).
In today's global business environment it is no longer sufficient simply to meet customers demand as time quality and cost have become increasingly important in the phase of increasing competition (Petts 1997:551).
According to Higgins (1998:2), "customers don't always know what they need or even that there is a problem to be solved." Success awaits those companies that recognize the fact that, to be successful and satisfy customers, it is often necessary to lead customers into recognizing these needs (Higgins 1998:2-3).
Against this background, this paper focuses on the United Kingdom (UK) retail industry using certain analytical models such as the five forces, the PESTLE framework and the SWOT analysis. Focusing on this sector has a number of important advantages. Firstly, government regulations and control in this sector are quite strict. In addition, the retail sector represents one of the principal sectors of the UK economy, having one of the biggest employer and biggest multinational in the world TESCO. In this direction it is important to look deeper into the industry.
1.0.1 Structure of Work
The introductory section of this paper laid the principal argument for this study. The remaining part of the paper is organized as follows. In the section two of the paper, I will present an overview of the United Kingdom retail sector with emphasis on the major players, TESCO, Sainsbury, Morrison and Marks &Spencer. Section three of the paper looks at the Macro and Micro economic environment of this sector with emphasis on the PESTLE framework while section four evaluates and analyses the sources of competition in this sector using Porter's Five forces model. The last but one section of the