Tesco Entering in China
1) What is the case talking about in brief:
The case focuses on the entry and expansion strategies of Tesco in the Chinese market. The Chinese retail sector offered huge opportunities for international retailers with the average annual growth in the last 20 years being around 15%. Tesco entered China in 2004, after several successful Asian ventures including Thailand, South Korea and Japan. The Chinese market was a very different market in terms of tastes and preferences from the other markets that Tesco operated in. Therefore, it decided to enter the country through a joint venture so that it could learn about the market through its partner, which had operated in the market for several years.
Also, by the time Tesco entered China, other multinational retailers like Wal-Mart and Carrefour were already well-established in the market. The case discusses how Tesco faced the challenges in an emerging market like China by adopting strategies to suit that market. The case ends with a discussion on the challenges that Tesco faces in the country.
2) Evolution of current business :
Owner: Jack Cohen
Year of Idea: 1919
Year of establishment: 1929
Product in initial stages: Grocery store
Initial market: UK
Growth of Business: started with acquisition of many companies in UK
Present businesses: Different types of stores across the globe
Increase in growth: Tesco was ranked 4th among the top retailers in the world with retail sales of 86,827(in US$ mn) and global market share of 1.5%
3) Analysis of the case with respect to:
• SWOT Analysis
STRENGHTS:
• Company’s various international strategies for expanding in different countries.
• Having consistent processes and policies across all the countries in which it exists.
• Well laid Values and The Tesco Way of doing business.
• Strong HR
• Proper customer service facilities.
• Proper store and merchandise management.
• Localized its stores in accordance with the demands of local consumers.
The case focuses on the entry and expansion strategies of Tesco in the Chinese market. The Chinese retail sector offered huge opportunities for international retailers with the average annual growth in the last 20 years being around 15%. Tesco entered China in 2004, after several successful Asian ventures including Thailand, South Korea and Japan. The Chinese market was a very different market in terms of tastes and preferences from the other markets that Tesco operated in. Therefore, it decided to enter the country through a joint venture so that it could learn about the market through its partner, which had operated in the market for several years.
Also, by the time Tesco entered China, other multinational retailers like Wal-Mart and Carrefour were already well-established in the market. The case discusses how Tesco faced the challenges in an emerging market like China by adopting strategies to suit that market. The case ends with a discussion on the challenges that Tesco faces in the country.
2) Evolution of current business :
Owner: Jack Cohen
Year of Idea: 1919
Year of establishment: 1929
Product in initial stages: Grocery store
Initial market: UK
Growth of Business: started with acquisition of many companies in UK
Present businesses: Different types of stores across the globe
Increase in growth: Tesco was ranked 4th among the top retailers in the world with retail sales of 86,827(in US$ mn) and global market share of 1.5%
3) Analysis of the case with respect to:
• SWOT Analysis
STRENGHTS:
• Company’s various international strategies for expanding in different countries.
• Having consistent processes and policies across all the countries in which it exists.
• Well laid Values and The Tesco Way of doing business.
• Strong HR
• Proper customer service facilities.
• Proper store and merchandise management.
• Localized its stores in accordance with the demands of local consumers.