Tesco goes global
Topic: Tesco goes global
Contents
Introduction
Tesco is multinational largest grocery retailer in the United Kingdom, with a 25 percent share of the local market. It is second largest retailer in the world measured by profits after Walmart. In its home market, the company’s strengths are reputed to come from strong competencies in marketing and store site section, logistics and inventory management, and its own label product offering.
Why this topic I chose
I like going to grocery stores. There are many kind of grocery stores in the US. When I was in Texas, H-E-B is dominated in this area. But after I came to California, I noticed another grocery store is dominated. So I am interest in researching about grocery store market in US.
Why did Tesco’s international expansion strategy focus on developing nations? After they looked at international markets, they soon concluded the best opportunities were not in established markets, such as those in North America and Western Europe because there are already existed strong local competitors. On the other hand, emerging markets of Eastern Europe and Asia where there were few capable competitors but underlying growth trends.
How does Tesco create value in its international operations?
At first, They entered in Hungary market in 1994 by acquisition. By 2004, Tesco was a market leader in Hungary. In 1995, Tesco acquired 31 stores on Poland from Stavia, a year later it added 13 stores purchased from Kmart in the Czech Republic and Slovakia and the following year it entered the Republic of Ireland. That’s how they created the value in its international operation.
In Asia, Tesco has a history of emerging into joint-venture agreements with local partners. What are the benefits of doing this for Tesco?
Tesco may not have a local knowledge and, technology. The local partner would provide Tesco the valuable information. For
Contents
Introduction
Tesco is multinational largest grocery retailer in the United Kingdom, with a 25 percent share of the local market. It is second largest retailer in the world measured by profits after Walmart. In its home market, the company’s strengths are reputed to come from strong competencies in marketing and store site section, logistics and inventory management, and its own label product offering.
Why this topic I chose
I like going to grocery stores. There are many kind of grocery stores in the US. When I was in Texas, H-E-B is dominated in this area. But after I came to California, I noticed another grocery store is dominated. So I am interest in researching about grocery store market in US.
Why did Tesco’s international expansion strategy focus on developing nations? After they looked at international markets, they soon concluded the best opportunities were not in established markets, such as those in North America and Western Europe because there are already existed strong local competitors. On the other hand, emerging markets of Eastern Europe and Asia where there were few capable competitors but underlying growth trends.
How does Tesco create value in its international operations?
At first, They entered in Hungary market in 1994 by acquisition. By 2004, Tesco was a market leader in Hungary. In 1995, Tesco acquired 31 stores on Poland from Stavia, a year later it added 13 stores purchased from Kmart in the Czech Republic and Slovakia and the following year it entered the Republic of Ireland. That’s how they created the value in its international operation.
In Asia, Tesco has a history of emerging into joint-venture agreements with local partners. What are the benefits of doing this for Tesco?
Tesco may not have a local knowledge and, technology. The local partner would provide Tesco the valuable information. For