Host Country Rationale for selecting the chosen market Being a UK-based company, Tesco entered the US grocery market in 2007 after opening new chain convenience stores referred to as Fresh & Easy. The headquarters of the company in the US are situated at El Segundo, California. After establishing its operations in the US, it planned… Continue reading International Expansion Plan Host Country.
Political Factors Tesco is an international company that undertakes its operations in 13 countries that are situated outside the UK, and their business operations are diversified. This means that the operations of Tesco are heavily influenced by political factors, which include legislation, political stability, and tax rates. Whenever credit crunch takes place, unemployment is witnessed… Continue reading International Expansion Plan Political Factors.
Market entry strategies In the past five years, Tesco has managed to expand its operations from the traditional UK supermarket into providing a variety of products and services to consumers in various parts of the world. The major kinds of products that the company offers comprise of personal finance, non-food items and internet shopping (Masters,… Continue reading International Expansion Plan Market entry strategies.
Company analysis- SWOT Strength The Tesco brand is a popular one around the world. 30 percent of Tesco’s stores are situated outside the UK, and the company is planning to make it 45 percent once it expands to the EU and Asian countries. It operates in 14 countries, and 78 percent of the revenue that… Continue reading International Expansion Plan Strength .
Threats The issue of price wars serves as a threat to the operations that Tesco undertakes. For instance, both ASDA and Tesco avail goods to their customers at cheap prices. This could lead to lowered profitability of the company. Since the prices of Sainsbury are high, the company could seek low prices in order to… Continue reading International Expansion Plan Threats.
Environmental factors In the modern business environment, most businesses have been subjected to pressure where they are supposed to portray responsibility to the society, and take the appropriate measures that allow the entire society to benefit from their operations. Since Tesco is a global business, it has embarked on a number of initiatives aimed at… Continue reading International Expansion Plan Environmental factors.
Economic Factors Most political changes come about because of the changes realized in the economic environment. For instance, the politicians are the ones who decide on tax and interest rates, and hence impact on the performance of companies. However, Tesco cannot realize significant expansion in the UK lately because it has already expanded one third… Continue reading International Expansion Plan Economic Factors.
Opportunity Various opportunities are emerging in the non-food sector. For instance, the growth in hypermarket share is expected to grow by 13 percent. This is because the UK business has helped the company to realize solid performance though the market situation is still competitive. The growth in the sales that Tesco makes is remarkably little.… Continue reading International Expansion Plan Opportunity.
Marketing strategy Tesco has been witnessing challenging operations mostly in the US where it has written down plans of the ailing US market. In order to help the company realize future growth, it has embarked on various marketing initiatives (Essential Marketing Planning, 2013). One of the crucial strategies that the company has adopted comprises of… Continue reading International Expansion Plan Marketing strategy.