International Business Strategies: TacoBell, Dunkin, and Tesco Report

This report examines the international business strategies of three companies: TacoBell, Dunkin Donuts, and Tesco. It analyzes the reasons behind TacoBell's failure in Dubai, attributing it to a lack of appeal to local tastes and insufficient brand recognition. The report suggests that TacoBell should adopt localization strategies, including using local ingredients and enhancing its menu, to revive its business in the UAE. It also explores Dunkin Donuts' failure in India, citing issues with its breakfast strategy, health consciousness, and high operational costs. The report proposes a transnational strategy for Dunkin Donuts, focusing on core products and reducing store sizes. Finally, the report investigates Tesco's failure in the USA, highlighting a lack of understanding of local preferences and poor store locations. It recommends that Tesco implement transnational and localization strategies, consider customer choices, and partner with local brands to improve its performance in the US market. The report concludes that thorough consideration of consumer preferences is critical for success in international markets.

International Business Strategies
Assignment
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Table of Contents
Introduction................................................................................................................................2
Reasons behind TACOBELL failure in Dubai..........................................................................2
Strategies for TACOBELL for reviving businesses in UAE.....................................................2
Reasons behind Donkin Donuts failure in India........................................................................2
Strategies for Dunkin Donuts for reviving businesses in India..................................................3
Reasons behind TESCO failure in USA....................................................................................3
Strategies for TESCO for reviving businesses in USA..............................................................3
Conclusion..................................................................................................................................4
References..................................................................................................................................5
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Introduction
Strategies aids the companies to sustain in the market. For international expansion
companies must consider optimal strategies because then only sustainability of the company
assured in foreign locations (Wieland et al., 2017). In this report, three companies will be
analysed and the core reason behind their failure in international business will be identified.
Reasons behind TACOBELL failure in Dubai
In 2008 TACOBELL entered Dubai’s food industry. Despite of the store located in
the prime location of Dubai, TACOBELL failed to sustain in the Dubai’s market. In Dubai
TACOBELL failed to satisfy the local taste buds of the population, people here failed to
crave for the Mexican food which TACOBELL has to offer. Lack of international brand
recognition is also seeming to be another reason behind the failure along with lack of proper
physical store layout.
Strategies for TACOBELL for reviving businesses in UAE
In UAE, TACOBELL can occupy market share again if company adopts strategies
such as Localization strategy, company should involve local ingredients for preparing food
and along with this company should also increases its menu options (Shin et al., 2020).
TACOBELL should also design the stores in Dubai in such a way that a fine dining
experience is felt by the population.
Reasons behind Donkin Donuts failure in India
Donkin Donuts entered Indian market in 2012, after its entry in the market company
incorporated Localization strategy by involving local ingredients, company even offered
burgers to sustain in the market. Yet company failed in India because the breakfast strategy of
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the company in India did not worked well here, also growing health conciseness among
Indians resulted in low sales figure in the purview of the company. Thus, high operational
costs due to huge stores and lack of brand equity acted as main reason behind failure.
Strategies for Dunkin Donuts for reviving businesses in India
Company may consider the consumers preference first and then re-enter into Indian
market again. Transnational strategy must be implemented by company (Ghauri et al., 2016).
Company must focus on its primary products such as donuts and beverages. The large stores
operational units’ number should be reduced rather small stores even sale on kiosk should be
considered by company. Then only low costs will be incurred within the operational
management and company can sustain.
Reasons behind TESCO failure in USA
In 2007, TESCO entered US retail market. In US market TESCO failed to incorporate
the preferences of the local’s people here, small stores are one of the causes behind the
failure. Acquiring stores in remote areas during global crisis period also became one of the
failure factors for TESCO (Yoder et al., 2016). Lack of involvement of other American
branded products within these stores lowered the sales margin of the company.
Strategies for TESCO for reviving businesses in USA
Tesco must involve the transnational and localization strategy in its business process
for entering into US’s retail market. TESCO must consider the choices of the US customers
regrading supermarkets. Company must also choose the prime locations for the stores so that
sales margin uplift. Company must also tie up with the local brands to gain loyalty of the
customers here.
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Conclusion
From the above it can be concluded that companies before entering the foreign
markets must consider factors such as consumers preferences, because lack of consideration
will result in shutdown of the international business.
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References
Ghauri, P., Wang, F., Elg, U., & Rosendo-Ríos, V. (2016). Market driving strategies: Beyond
localization. Journal of Business Research, 69(12), 5682-5693. Retrieved from:
https://www.sciencedirect.com/science/article/pii/S0148296316302788 accessed on
8.04.2020
Shin, S., Kim, H., & Kim, W. (2020). Transnational corporations’ localization strategies via
retail attributes: Focus on Chinese market. Journal of Retailing and Consumer
Services, 55, 102088. Retrieved from :
https://www.sciencedirect.com/science/article/pii/S0969698919311944 accessed on
8.04.2020
Wieland, H., Hartmann, N. N., & Vargo, S. L. (2017). Business models as service
strategy. Journal of the Academy of Marketing Science, 45(6), 925-943. Retrieved
from : https://link.springer.com/article/10.1007/s11747-017-0531-z accessed on
8.04.2020
Yoder, S., Visich, J. K., & Rustambekov, E. (2016). Lessons learned from international
expansion failures and successes. Business Horizons, 59(2), 233-243. Retrieved from:
https://www.sciencedirect.com/science/article/pii/S0007681315001500 accessed
on 8.04.2020
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