Tesco reported an increase in profits and raised its profit forecast, despite facing supply chain challenges. Their venture into the Japanese market highlighted the importance of cross-cultural design. The analysis of the case study "TESCO-Losing Ground in the UK?" explores the reasons for their decline. In particular, Tesco has seen a decrease in sales in clothing and general merchandise. Additionally, the company faces threats such as intense competition, economic downturns, and changing consumer preferences. The rise of e-commerce has also presented structural challenges to the retail giant. Some suppliers have raised concerns over selective purchasing by Tesco due to rising costs.