Tesco: International Business and Strategy Analysis

Best Essays
Basheer Mohamad Hassan Alkhatib
Student Number:@00406850

This Assignement is submitted for Professor
Dr. Alistair Benson
Salford University
August, 3rd, 2014


1. Introduction 2
2. Analysis of the International Market 2
2.1 PEST Analysis: Tesco in Brazil 2
2.2 Market Specific Issues 4
3. Industry Analysis: Brazil 4
3.1 Competitive Rivalry in the industry 5
3.2 Bargaining Power of Suppliers 5
3.3 Bargaining Power of Customers 5
3.4 Threat of New Entrants 5
3.5 Threat of Substitutes 6
4 Company Analysis: Tesco 6
4.1 Resource Based View: Tesco 6
4.2 SWOT Analysis: Tesco 8
5. CAGE Analysis 9
6. Conclusion 11
7. References 12


Tesco Plc is the second largest retailer in the world and currently operates in over 6000 stores worldwide (Tesco Annual Report, 2014: n.p). This report analyses Tesco as an organisation and proposes a potential market for international expansion. The aim of this report is to analyse the international market’s environment and then indicate a potential strategy for Tesco to enter the market. The report initially works towards the analysis of the new market’s macro environment to understand key aspects linked with the proposed business market. This is followed by an internal analysis of Tesco and an overall external analysis of the retail industry in the new market. A strategic approach to enter the new international market is then presented.
The proposed market for entry is Brazil. Brazil has a population of over 200 million and is the fastest merging economy in the world (IBGE, 2014: n.p). The country poses an exciting opportunity for Tesco to enter as the new trendsetter in the retail market.

2. Analysis of the International Market
This section of the report analyses the market in which Tesco is proposed to expand.The analysis provides overall external environmental implications along with market specific challenges associated with the market.

2.1 PEST Analysis:

References: Baines, P. Fill, C & Page, K. (2009), Marketing, Oxford, University Press. Barney, J. B. (1991), Firm resources and sustainable competitive advantage. Journal of Management, 17(2), pp. 99-120 Crisóstomo, V Elms,J. Canning,C. Kervenoael,R. Whysall,P. and Hallsworth,A. (2010) "30 years of retail change: where (and how) do you shop?",International Journal of Retail & Distribution Management, Vol. 38 Iss: 11/12, pp.817 - 827 Fan, D Johnson,G. Whittington,R. and Scholes,K. (2011).Exploring Strategy,London, FT: Prentice Hall Pehrsson, A Porter, M.E. (2008) The Five Competitive Forces That Shape Strategy, Harvard business Review, January 2008 Puga, A Quelch, J. (2010) “Tesco PLC: Fresh & Easy in the United State”, Harvard Business Review, Case Study, pp. 1-21, Available from: http://hbr.org/product/tesco-plc-fresh-easy-in-the-united-states/an/511009-PDF-ENG (Accessed on 1st August 2014) Rajesh K Thomson, R. (2012) Analysis: why have so few retailers entered Brazil? Available from: http://www.retail-week.com/analysis-why-have-so-few-retailers-entered-brazil/5040089.article (Accessed on 2nd August 2014) Turner,J Twist,D (2005) "The impact of radio frequency identification on supply chain facilities", Journal of Facilities Management, Vol. 3 Iss: 3, pp.226 - 239 Whitelock, J

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