International Business Strategy for Tesco: Market Analysis Report for Expansion in India and Brazil

Running head: INTERNATIONAL BUSINESS STRATEGY
TESCO
International
Business Strategy
5/27/2019

INTERNATIONAL BUSINESS STRATEGY 1
Table of Contents
Introduction................................................................................................................................2
Overview of Tesco.................................................................................................................2
Overview of India..................................................................................................................2
Overview of Brazil.................................................................................................................3
Corporate Strategy of Tesco...................................................................................................3
Two tier expansion strategies.............................................................................................3
The potential implication of formal institutions and informal institution in India................4
Formal institutions.............................................................................................................4
Information Institutions......................................................................................................5
The potential implication of formal institutions and informal institution in Brazil...............6
Formal institutions.............................................................................................................6
Information Institutions......................................................................................................8
Recommendations..................................................................................................................9
Market Entry Strategy..........................................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................13

INTERNATIONAL BUSINESS STRATEGY 2
Introduction
Today, every small and large business are expanding or planning to grow their business
operations in the international market by adopting expansion strategies. The key reason for
the business expansion in the international market is that it offers the opportunity of growth,
increased market share, and improved understanding of consumer behavior to the
organization. In addition to this, expanding business in the international market results in
increasing the reputation as well as the value of the company in domestic as well as
international market (Rothaermel, 2013). However, for the successful expansion of business,
it is very important to conduct market research of the industry or country where the business
seeks its potential growth. The aim of this report is to discuss the market analysis report for
Tesco by suggesting the expansion of the business in one of the selected countries that are
India and Brazil.
Overview of Tesco
Tesco is the general merchandiser and grocery retailer of the United Kingdom. Company is
gained the third position in the global market measures in terms of revenue and in terms of
revenue, it is the ninth biggest retailer. Company has shops in around seven nations and is the
leading retailer of the United Kingdom market (Tesco, 2019). The company was established
in the year 1919 by Jack Cohen. Originally, Tesco has expanded its business in the global
market in the early 1990s. Company is also listed on the stock exchange of London (Tesco
PLC, 2019).
Overview of India
India is located in the region of South Asia. It is generally called the Republic of India and is
comprised of 7 territories and 29 states. Across the world, Indian is the seventh largest nation

INTERNATIONAL BUSINESS STRATEGY 3
in terms of area. The nation is enclosed by the Bay of Bengal, Arabian Sea, and the Indian
Ocean. Along with this, the nation shares its borders with Bangladesh, Nepal, Pakistan,
Bhutan, Burma, and China (Radius Worldwide, 2019). India has arisen as the fastest
developing economy across the globe and all over the world; it is anticipated to be in the top
three economic powers in the future, reinforced by its strong partnerships and democracy. In
addition to this, there was an increase in the GDP of India of around 7.2% in the year 2017-
2018 and 7% in the 2018-19. India has successfully booked its place as the third biggest base
of start-up across the world with around 4750 technology start-ups (India Brand Equity
Foundation, 2019).
Overview of Brazil
Brazil is the largest nation in Latin America and South America. The total area covered by
Brazil is 8.5 million square kilometers and with around 208 million people. This nation is the
fifth largest nation across the globe in regards to area and also the fifth most populous nation.
The capital of the country is Brasilia and the most populated city of Brazil in São Paulo. The
country is comprised of 26 states union, 5570 municipalities, and Federal District (About
Brazil, 2019). Being the fifth largest nation in terms of area and the fifth largest market
opportunity in the world, Brazil is the only nation which provides plenty of business
opportunities to them who desire to operate their business in the country. It is rich in mineral
comprising oil and iron and with the huge population, mainly including young as well as
motivated personnel. Hence, the potential of executing business in the market of Brazil must
not be ignored those who desire to grow their processes in the global market or at a
worldwide level (Warburton, 2019).