CASE: “Tesco Goes Global”

a. Why did Tesco’s initial expansion strategies focus on developing nations?

Tesco looked for a location with few competitors in the grocery retailer area but also with a high growth potential and large size of customers; developing countries had these qualities, especially in Asia.

b. How does Tesco create value in its international operations?

- Makes efforts to broadcast and incorporate their knowledge and skills in the new ventures.
- The managers of the joint ventures are mostly local, accompanied by some experts from UK. This helps them to adapt to the culture in a better way.
- The partners in the joint ventures have a deep understanding of the markets in the host
Countries. This makes …ver más…

- Another risk is failing to attract consumers.
- And the last one, not adapt to the new way of business.

e. How did Tesco adapt its retailing concept to the local needs and market characteristics? Was a localization strategy used and how?

A company does market research in order to know the need of consumers and to be able to adapt to them. Also, they have the information provided for their partners that