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Aspects of International Market - Tesco

Tesco's entry into the US market with its Fresh & Easy Neighbourhood Markets, the scale and risk profile of the market entry, and the subsequent expansion and challenges faced by the company.

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Added on  2020-01-07

Aspects of International Market - Tesco

Tesco's entry into the US market with its Fresh & Easy Neighbourhood Markets, the scale and risk profile of the market entry, and the subsequent expansion and challenges faced by the company.

   Added on 2020-01-07

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ESSAY 1
Aspects of International Market - Tesco_1
2
Aspects of International Market - Tesco_2
INTRODUCTION The international market refers to market outside the global borders of a entity land ofcitizenship. The globalization has lead to the integration of the several economies which hasresulted into increased opportunity for entities. Therefore, corporations can expand intointernational market which will help them in making optimum utilization of available resources.The enterprises can expand in international market to enhance their market share and target morecustomers (Sintonen and et.al., 2016). This will further help them in global recognition leading tohigher sales and profitability. In this report, various aspects of international market will be studiedin the context of provided case study of Tesco. It is a British multinational grocery and generalmerchandise retailer founded in 1919 and headquartered in Welwyn Garden City. In this report,critical assessment of the factors that forced entity to withdraw from Chinese market will bestudied. The evaluation of Tesco expansion into the US market will be explained. Thereaftercritical evaluation of the attractiveness and challenges of Indian food retail market to Tesco will beprovided. Further, justification of the decision if company expands into the Indian market will beprovided. OverviewFrom the case study, it has been identified that Tesco is among the largest retailer of UK. Ithas started its expansion into international market by entry into US in year 2007. Thereafter,company entered into markets of Las Vegas, Phoenix, Los Angeles etc. Initially, company investedmore than £250 million per year for the 5 year period to develop new chain. In 2 years companyhad started around 125 stores in US. According to the statistics, in British grocery market, Tesco isthe major leader with around 30% of share (History of Tesco. 2016). At present the corporation havestores in 14 nations across Europe, Asia, Ireland, Malaysia, Hungary and Thailand. Tesco ispresently functional with about 5400 stores in 14 markets external the UK. With a strongconcentration on firm in Asia, it run about 1400 stores in Japan, China, South Korea, Malaysia andThailand. Tesco holds top 3rd position as largest retailers in the globe as per the revenues. Inaddition to this according to revenues, company is 5th largest retailer. To maintain the leadingposition in the market, company assure reliable, qualitative products and services. TASK 11.1 At the end of August 2011, Tesco has announced its exit from Japan. Critically assess thosefactors that compelled Tesco to withdraw from the Japanese Market. From the critical assessment of the provided case study,it has been identified that Japan3
Aspects of International Market - Tesco_3

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