Tesco's Strategies for Entering Emerging Markets: A Research Report

This report is a research project focusing on the strategies employed by businesses, specifically Tesco, to enter emerging markets. The introduction highlights the significance of emerging markets for gaining a competitive advantage and provides background information on Tesco, a UK-based multinational retail company. The research aims to study Tesco's strategies, objectives, and challenges in entering these markets. The literature review explores the concept of emerging markets, various entry strategies like joint ventures and franchising, and the challenges faced by companies in international operations. The research methodology includes data collection through primary and secondary sources, an exploratory research design, and a deductive research approach. The report aims to analyze the challenges and opportunities associated with Tesco's global expansion efforts, using a case study approach to provide a comprehensive understanding of its market entry strategies and their effectiveness.

Research Project

Table of Contents
TOPIC .............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
Literature Review ............................................................................................................................2
Research methodology.....................................................................................................................5
DATA ANALYSIS AND INTERPRETATION ............................................................................9
RECOMMENDATION AND CONCLUSION ............................................................................20
REFERENCES..............................................................................................................................22

TOPIC
“ The different strategies employed by businesses to enter emerging markets”. A Case
Study on Tesco.
INTRODUCTION
The present day business model becomes unpredictable or challenging which requires a
series of innovation and modification especially at strategic level in order to adopt best
positioning inside competing market. However, the concept of emerging market plays a
significant role which enable an organisation to gain competitive advantage without any
hindrances in trading goods or services at global level (Ambos and Håkanson, 2014). Emerging
market is relate with those countries that are striving to become advanced countries and are
specifically on a more economically in terms of fiscal transparency, production for obtaining
profit maximisation. Henceforth, it assist firm to examine current or upcoming trend or
opportunities which empower firm to attain increased level of productivity as well as help them
to obtain sustainable profitableness in an improved manner. This report is based on Tesco, which
is one of the branded retailer in UK and it is incorporated in the year of 1919. This study
involves research proposal which contains objectives, aim and research methodology in order to
bring best outcome in an improves way.
Background of the company
Tesco is one of the biggest and reputed multinational retail company headquartered in
UK, London. It deliver wide range of products and services in the form of hypermarket,
supermarket, superstore, convenience shop ad serve across the globe. Tesco manage its
functional area in democratic style but at time it also implies autocratic leadership style that
enable them to accomplish their task in a effective way. However, as Tesco operates its business
function in globalised way it undergoes with several internal and external business environment
threat which directly influence over its proficiency ratio. Recently, Tesco applies different
strategies to enter into new geographical regions as it takes an initiative to form joint venture
agreement with foreign companies i.e. Samsung which help them to enter in South Korean
marketplace. Moreover, Tesco makes an effort to enter into Indian market by franchising with
Trent, the retail ,section of Tata Group that assist firm to strengthen its profit margin rate in a
better way.
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Research Aim:
“To study the various strategies that could be employed by TESCO to enter emerging
markets”.
Research Objective
 To study the concept of emerging markets.
 To identify the different strategies that TESCO could employ to enter in emerging
markets.
 To examine the challenges faced by TESCO while operating at international level.
Research Questions:
 What is the concept of emerging markets?
 What are the different strategies that TESCO could employ to enter in emerging markets?
 What are the challenges faced by TESCO while operating at international level?
Rationale
The present study is based on various kinds of strategies which help an estabilishments to
get into into rising market for enhancing its brand value within an industry. The current scenario
of retailing industry or any sector contains intense level of competition and rivalry which directly
impact over system decision making capability as well on its brand image. However, this is the
reason which empower the researcher to adopt this topic so that they can be able to determine
several sort of techniques or strategies which lead company to enlarge its business function or
operation at global pace. Additionally, acquiring this concept help establishment to examine
growth opportunities for maximising the profit with an optimal utilisation of resources in an
effective way (Buckley, Elia and Kafouros, 2014).
Literature Review
To study the concept of emerging markets.
According to Ali. M. Kutan, 2014, Emerging markets are referred as low income
countries that undergoes huge development through economic liberalization and acceptance of
free market policies in order to enhance the firm's profitability rate at international level. In
addition to this, it empower establishment to increase their market share or size in an amended
way as it provide enormous opportunities which lead them to acquire growth and development
(Emerging Market and Global Economy, 2014). Henceforth, for obtain sustainable profitability,
emerging market helps organisation to achieve the same without any obstacles. As per the views
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of Prachi Juneja, 2019, globalisation is related to those aspect which encompasses different
causes, routes, outcomes of transnational and transcultural without any border barrier. On the
other hand, in the views of Sagnik Guha, 2017, Globalisation is a related with political agenda
which empower the nation, country or world to encourage multinational corporation for
maintaining unparalleled competition in order to gain competitive advantage in an innovative
manner (Globalization and the State, 2017).
To identify the different strategies that TESCO could employ to enter in emerging markets.
As per the views of Naseem Jeewa, 2019, In present scenario of marketplace, irrespective
of size and the field of act of establishment, their participation in international business becomes
a state not only for the enhance profit margin but also for the survival of firm within competing
industry (Strategies to Enter a New Foreign Market, 2019). There are various ways for
companies to enter into global market which is categorised and analysed on the basis of
penetration strategies or international principles like direct export, franchising, acquisition,
merger, joint ventures etc. Since economic growth contains various growth rates in various
markets, change of introduction methods into markets allows a firm to acquire benefit of
important development within marketplace to commencement lower growth rates on another. In
the views of Nicolas A. Pologeorgis, 2019, The existing scenario of business environment is
highly competitive and challenging which companies adopts to enter into internation market such
as joint venture, franchising, acquisition, merger, integration, liquidation and so on. In addition
to this, each of the strategies contain its own set of roles and regulation, policies which influence
firm's decision making and profit margin ratio. Moreover, all these strategies has its own benefits
and risks which may impose difficulty in acquiring new geographical regions in terms of
products or service. Whereas, George. N, 2105, signifies that in current marketplace, there are
enormous option for companies to enter into international market and each of its varies from
each other in every aspects for obtaining profit maximisation within stipulated period of time.
There will number of factors which impact choice of strategies including tariff rate, degree of
adoption, transportation cost, marketing and many more for accomplishing the goal in a better
way (MARKET ENTRY STRATEGIES, 2019). According to the Sean Silverthorne, 2010, Each
and every country seeks for enlarging their market division by making use of different types of
market entry strategies which poses huge obstacles as well as beneficial for establishments.
Moreover, choice of international strategies is wholly dependent on company's resources,
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commitment and degree of risk that influence firm's proficiency and decision making potentiality
in accomplishing pre determined goal in an efficacious and expeditious way.
To examine the challenges faced by TESCO while operating at international level.
In the views of Katie Reynolds, 2017, Although the concept of emerging market or
globalisation plays a significant role yet it impose huge complexities or challenges over
organisation in achieving their task within desired period of time. However, as multinational
companies takes an initiative do business or trade in new global markets, they may come across
with several challenges which influence negatively over its decision making process. Thus, some
of the issues are organisational structure, leadership, acquiring advanced technology, adopting
public relation and many more (Biggest Challenges of International Business, 2017). Therefore,
to cope with all upcoming competition an organisation requires to examines the industry
situation in order to utilize best strategic conclusion which lead them to get perspective within
industry as well as to advantage competitiveness benefit in an advanced mode. AS per
TradeGecko, 2017, for obtaining sustainable profitability, companies seeks for enhancing its
market share or size in a better way but at the same time globalisation impose huge difficulties
into firm in operating at globalised level. Some of the challenges are language and cultural
barrier, legal issues, local competition, government legislation and so on which reduces the brand
value of organisation within existing market (Overcoming 5 top challenges of international
expansion, 2017). In the views of S. Jaideep, 2015, the concept of international marketing is not
an easy task or aspect as it impose large number of issues and challenges over firm's
productivity. Some of the challenges are tariff barrier, administrative policies, political
instability, economic factor and many more which restrict various multinational companies to
survive within competitive industry for longer period of time. Therefore, proper selecting and
implementation of decision enable company to improve its overall performance and profitability
ratio in a better manner.
Research Gap
Research gap is refer to those aspect in which investigator identifies missing or
insufficient information which restrict researcher to attain appropriate conclusion or decision
making. Research gap in this project mainly related with the relationship between globalisation
and its impact on business success. This gap helps researcher to complete research project in
systematic manner. In regard of this project, researcher emphasis on various strategies which is
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required to enter into emerging or international market in order to gain sustainable profitability in
a better manner.
Research methodology
It is regarded as one of the significant element while conducting research as it is concern
the technique or process for collecting data which allow an investigator to analyse or evaluate
particular study's validity and reliability within existing marketplace. The different types for
gathering data are as follows:
Data Collection: This is an effective process used by researcher to gather appropriate amount of
information or data about the current study. There are basically two sources of data collection
which are primary and secondary. Under primary source of data collection, questionnaire will be
used. In case of secondary method, number of sources will be included which are books,
magazines, journals, articles and many other sources relevant to the topic. Primary and
secondary source of data collection will be explained as below in detailed manner:
Primary: It is relate with those type of information which no one has complied or
published in a forum and presented to public and thus it is termed at first hand data. However, to
complete this project, surveyor make use of several primary data sources i.e. questionnaire,
surveys, interview for obtaining authentic substance with better manner (Fox and Alldred, 2015).
Secondary: Under this method, data are collected from various publications, articles,
journals which is already done by researcher. In regard of this project, an investigator utilise
several publications, articles, magazine for achieving the task in a prescribed time frame.
Research Design: This part of research methodology have three main research design which are
exploratory, experimental and descriptive. These are effective research design but according to
the current study, exploratory type of research design will be going to used by investigator. As
this support researcher by exploring opinion of respondents about the research. Apart from this,
descriptive and experimental type of research design is not useful according to the current
investigation as it take maximum time and cost of the researcher.
Research Approach: This is an important part of research methodology which have two parts
such as inductive and inductive. Both types of research approach are essential but in order to
analysis quantitative data about the topic, deductive approach of research will be going to
applied. This approach support researcher in analysation of quantitative data and not require
additional amount of capital. On the other side, inductive approach is not useful according to the
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current topic because it need data in form of quality and also take maximum time and resources
of an organisation or researcher.
Research Philosophy: This is another essential method in research as it support researcher in
identification of research impact effectively. There are basically two research philosophy within
an investigation which are positivism and interpositive. Both types of philosophies are essential
but for doing current investigation, positivism type of philosophy is much more appropriate. As
this philosophy support researcher in identification of quantitative data about the different
strategies employed by businesses to enter emerging markets. On the other hand, interpretivisim
is another kind of philosophy which is not appropriate and useful for current investigation. As
need qualitative data and also require additional resources which turn to need maximum amount
of capital from researcher or organisation.
Types of research
Qualitative research is also refer as exploratory which is utilised to obtain an
apprehension of fundamental reasons, opinions and motivations in order to insights complex
issues for providing better decisions. On the contrary quantitative research is related with
generating numerical data or figures for determining values, opinions, behaviours with an intent
of rendering hypothesis of particular phenomena (Hah and Freeman, 2014). Hence, in relation to
this report, an investigator implies qualitative research method as it help them to acquire deeper
understanding of specific topic as well as aid them to bring out effectual outcome.
Research instruments, method or procedure: It is an effective and essential section of
methodology as it help investigator in collection of information from the respondents. There are
number of research techniques or methods such as interview, market survey, questionnaire, case
study, observation etc. These are effective techniques of data collection but for collecting
information regarding the different strategies employed by businesses to enter emerging markets,
questionnaire will be applied. Under this method, number of close-ended questions will be
prepared which support investigator in collection of reliable and valid information. This
technique of data collection will also help researcher by saving its time and money.
Sample technique: It is refer to the process in which researcher choose a set of respondents
from the larger population for gathering information in an efficacious way. Along with this,
there are two techniques of sampling which named are probability and non-probability. Both are
effective techniques of sampling but for selecting sample size within an investigation, probability
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sampling will be used. As this technique not take more time and help researcher to select sample
size on random basis. However, for this project investigator applies random sampling method
which offer them to gain accurate and relevant information for enhancing the quality of report.
Thus, in context of report, researcher choose 20 respondents from the wider range of population.
Research ethics: This is another important section within an investigation. As it support
researcher in completion of research activities or tasks in ethical manner. There are number of
principles in research such as objectivity, carefulness, confidentiality, openness, honesty and
integrity, legality, responsible publication etc. These are main principles of research ethics which
must be used by researcher. As these ethics support investigator to complete full research in
systematic and ethical manner.
Gantt Chart: This is an useful toll and graphical presentation technique which will be applied
by researcher for analysing starting and ending time duration of project. Under Gantt Chart,
number of activities will be included which will assist an investigator to complete each activities
of investigation within given time period.
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Work Break Down Structure:
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DATA ANALYSIS AND INTERPRETATION
This section of research is regraded as an important determinant because it is concern
with collecting data from targeted respondents and interpretation the same with the usage of
appropriate tool in order to define pre determined research problem in an improved manner. In
context of current research report, researcher selected 20 respondents which enable them to
acquire accurate opinion regarding emerging market and its significance for improving the
overall performance of an organisation in a better way.
Questionnaire
Q1) Are you familiar with the concept of emerging market?
a) Yes
b) No
Q2) What are the key drivers of emerging market which motive an organisation to adopt
the same within its functional areas?
a) Develop market demand
b) Enrich domestic economy performance
c) Improve currency market dynamics
Q3) What are the different strategies which Tesco can imply into its business process for
entering into emerging market?
a) Joint Ventures
b) Licensing
c) Franchising
Q4) What are the benefits that an organisation acquire with the practice of emerging
market aspects within its functional unit?
a) Diversify company market
b) Exposure to different growth opportunities
c) Improve company's reputation
Q5) What are the challenges which Tesco undergoes while managing the process of
emerging market into its business function in order to enter into new geographical region?
a) Tariff and Export fees
b) Political instability
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c) Linguistic barriers
Q6) What are the ways that Tesco can adopt for overcoming the challenges of emerging
market?
a) Training and development
b) Localise offerings
c) Access and leverage intelligence
Q7) Does the aspect of emerging market continue to drive and enhance the global
economy?
a) Agree
b) Disagree
Q8) Does the concept of emerging market help Tesco to cope up with changing market
competition?
a) Yes
b) No
Q9) Provide suitable suggestion for Tesco in regard of improving the profit margin ratio
with the application of emerging market strategies?
Theme 1: Concept of emerging market
Q1) Are you familiar with the concept of emerging
market?
Frequency
a) Yes 15
b) No 5
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