Tesco Lotus in Thailand

Topics: Tesco, Hypermarket, Charoen Pokphand Pages: 11 (3779 words) Published: December 17, 2009
In the world of business today, the demand and supply of goods and services have become increasingly every years. The competition among sellers is very frightened and excited action. According to the current situation, most business opens their business to respond customers’ needs as much as they can. By the way, the popular demand of customers always are the consumers goods, hence, many major businesses tend themselves to open the hypermarket, which provides a large variety of products such as food and non-food products. Moreover, the consumer’s market power is growing strong and stable because customers’ trends today tend to shift from basic purchases to value-oriented brands and retailers. By the way, their power creates the new perception among sellers that most customer need a low cost of product whereas keeps a high quality. Then, many hypermarkets always compete each other with the reasonable price and high quality. In sum, most of hypermarkets need to adapt their strategies and operations to be compatible with the customer’s trends, needs, and situations. Moreover, some of famous hypermarkets expand their business to abroad to be their key strategies in order to generate higher sales and profits (Nielsonwire, 2009).

As I mentioned above information, Tesco PLC is one of the best examples of hypermarket that has a reputation in selling low cost of products with high quality. The excellent strategies and operation processes they perform in both domestic and global represent the efficient multinational corporations that I would like to present in this paper. In summary, due to the increasingly international convenience store of Tesco PLC in the chain of a hypermarket operation, I would select Tesco Thailand in specific three areas as the following •Positioning for greater global competitiveness

Globalization strategies
Compliance to government policies
Company Background
Tesco Plc is one of the world's leading international retailers. Furthermore, it is the market leader in the UK with stores throughout the UK, Europe, Asia and the US. . It is the largest British retailer by both global sales and domestic market share. According to the survey, Tesco is currently the third largest global retailer based on revenue, behind Wal-Mart and Carrefour, however, it is the second largest based on profit, ahead of Carrefour. Besides selling consumer’s product, food and drink, Tesco has diversified in many areas, such as clothing, consumer electronics, financial services, telecoms, home, health and car insurance, dental plans, retailing and renting DVDs, CDs, music downloads, Internet services and software. By the way, the principal activity of the group is food retailing, with over 2,300 stores worldwide, of which around 1,780 are in the UK (Just-food, 2009). Some of the stores worldwide would be in Czech Republic (84), Hungary (101), Poland (280), Republic of Ireland (95), Slovakia (48), Turkey (30), China (47), Japan (109), Malaysia (19), South Korea (91), and Thailand (370). Furthermore, in December 2007, Tesco made its entry into the US market with the opening of Fresh & Easy neighborhood market stores. Then, by March 2008, the company had succeeded in opening 37 stores across South California, Nevada and Arizona, with a further 19 planned for Sacramento. Most importantly, all Tesco stores cover a range of formats, which the main businesses are supermarkets and convenience stores. The company also operates online grocery retailer Tesco.com, as well as Tesco Personal Finance and Tesco Telecoms to satisfy customer’s needs. According to international expanding, Tesco currently operates in 13 countries and it will possibly expand into further countries. By the way, Tesco's international expansion strategy is to joint venture with local partners, such as Samsung Group in South Korea (Samsung-Tesco Home plus), and Charoen Pokphand in Thailand (Tesco Lotus) by appointing a very high proportion of local...

References: Nielsonwire. (2009). “Supermarket Guru” Phil Lempert’s 2009 Retail Outlook. Retrieved December 12, 2009, from http://blog.nielsen.com/nielsenwire/consumer/supermarket-guru-phil-lemperts-2009-retail-outlook/

Just-food. (2009). Background. Retrieved December 12, 2009, from http://www.just-food.com/factsheet.aspx?id=40
Tescopoly. (2009). Tesco Worldwide. Retrieved December 12, 2009, from http://www.tescopoly.org/index.php?option=com_content&task=view&id=595&Itemid=193
Tesco Plc. (2009). Tesco Plc-About us. Retrieved December 12, 2009, from http://www.tescoplc.com/plc/about_us/tesco_story/
Tesco Lotus. (2009). Tesco lotus-About us. Retrieved December 13, 2009, from http://tescolotus.com/left.php?lang=en&menu=corporate_en&data=profile

Highbeam research. (2009). Tesco Lotus eyes lucrative wet market niche. Retrieved December 13, 2009, from http://www.highbeam.com/doc/1G1-129514327.html
Seafood export profiles Thailand. (n.d.). Key regulations and tariffs. Retrieved December 13, 2009, from http://www.seafish.org/upload/file/market_insight/Thailand_SEP.pdf
A UNI Global Union. (2009). Tesco’s employment practices in Thailand. Retrieved December 12, 2009, from http://www.uniglobalunion.org/Apps/UNIFiles.../UNI_Thailand_FINAL_LR.pdf
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