Tesco plc is a multinational grocery store originated from British. Tesco general merchandise retailer headquartered located in United Kingdom. It’s the third-largest retailer in the world as we measured according by revenues its stand after Wal-Mart and Carrefour and is the second-largest if we calculated profits then, its stand after Wal-Mart. Tesco deals in approximately 14 countries across Asia, Europe and North America and is the grocery market leader in the UK and capture the 30% market share, Malaysia, the Republic of Ireland and Thailand. The reason Tesco increase their growth rapidly is increasingly diversified geographically and into areas such as the retailing of books, clothing, electronics, furniture, petrol and software; financial services; telecoms and internet services; DVD rental; and music downloads. Tesco’s corporate strategy
In behind every successful industry they have their own strategy. That strategy will be their core of the business and industry. Tesco also has its own strategy. Tesco is using its own brand product everywhere and selling with cheap rate. Another important part of their strategy is the use and innovation of new technologies. They are the first to introduce self billing and use camera to reduce theft.
Reason’s Tesco choose India, Marketing Opportunities of Tesco in India
Tesco has had a limited presence in India with a service centre in Bangalore. As part of their internationalization Tesco is planning to implement their full presence in India. Tesco is planning for opening a wholesale cash-and-carry business in the biggest commercial city of India, Mumbai. Tesco will start its operation by joining with the Tata, one of the giant business groups in India.
Factors Tesco has chosen India to start their new business
In India people with high income have a tendency to use new taste and prefer brand new items. So here Tesco have a wide opportunity because Tesco sell their own product with their label and is not available elsewhere in India. So as a new comer with branded products Tesco will have a good opening in market. So rising income is an important factor of their opportunities.
Liberalization of Indian Economy
This is also an important opportunity of Tesco in India. They can invest large amount to attract the consumer mind by giving a variety of goods. Foreign direct investment is also a great factor that helps Tesco. Indian government is supporting FDI because it provides huge profit and development for the country. So Tesco can utilize this chance and can get a good opportunity in India (Accessed from report of Corporate Catalyst India).
High population growth and suitable places
Another opportunity which is in front of Tesco is the large population in India and the metro cities. There are a lot supermarkets and retail outlets in India and are making huge profits. But the customer satisfaction guaranteed by them is low. Here Tesco have a good opportunity when they are using a core strategy to attract customers into their outlets.
Cheap labor with high qualified personal
India is a country with high population. So there is no much strain for Tesco to rent a labor. They will get skilled and educated labor because India has a wide labor pool range with cheap wages. Skilled workers are needed for retail industries. So Tesco can choose the skilled workers through agency. This is also an opportunity for Tesco for operating in India.
All in One
This is the main opportunity of Tesco in India. By the term ‘All in One’ it means that people can shop everything they want from Tesco itself. There is no need for them to go to different shops for purchasing. People can save time by purchasing in Tesco. If Tesco can exploit this opportunity very well they will be the market leaders in India. (Anjana (2010); ‘Business India Retail Market Overview’)
Developed technology and Infrastructure
India is a country with high...