Tesco’s International Expansion Strategy

Tesco’s International Expansion Strategy

Tesco has been successful in its international strategy because of the company’s strategic decision-making with regard to the markets they need to venture into, and the time of entry into those markets. Tesco is currently the largest supermarket chain in the UK and the second-largest in the world after Walmart, by revenue (Hill & Hult, 2019). The company achieved success by correctly choosing the markets to enter. When Tesco first started expanding, the company decided not to try markets such as Eastern Europe and North America, where other large chains had already established. Instead, the company went to the emerging markets and formed relationships with smaller companies that understood these markets.

Tesco can manage its international expansion goals by continuing to use this strategy. There are many markets that are yet to be fully exploited by larger global retailers. For example, developing economies in places such as Africa have a lot of potential for a large company like Tesco (Wu, Wu & Zhou, 2012). The company can venture into relationships with smaller businesses in the selected markets like it has done previously in its global expansion efforts. Some large companies such as Walmart and the French company Carrefour may have already started joining such markets. However, the first-mover strategy is not always an advantage (Gollnhofer & Turkina, 2015). Tesco has a chance to join such companies and correct some potential mistakes that they may have made while establishing in the completely new global markets.

References

Gollnhofer, J. F., & Turkina, E. (2015). Cultural distance and entry modes: implications for global expansion strategy. Cross cultural management, 22(1), 21-41.

Hill, C., & Hult, T., (2019). Global Business Today Asia-Pacific Perspective. McGraw-Hill Education.

Wu, D., Wu, X. B., & Zhou, H. J. (2012). International expansion and firm performance in emerging market: evidence from China. Chinese Management Studies, 6(3), 509-528.

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Tesco’s International Expansion Strategy

Read the “Tesco’s International Growth Strategy” case study on page 361 in your textbook and respond to the following:

Based in part of your readings for this unit, relate the different discussions of strategy to the case.
How should Tesco manage their global brand?
Support your position with one additional resource from either globalEDGE or the Capella library.
You must use proper APA references and in-text citations to identify both the textbook and your additional resource.