Learning from Failures: Tesco's International Expansion in UK and USA

This report examines the international expansion strategies of Tesco, focusing on its ventures in both the UK and the US markets. It integrates the attention-based view of the firm and organizational ambidexterity literature to analyze how unbalanced attention and resource allocation between domestic and foreign markets can lead to divestment. The study utilizes Tesco's case as a practical illustration, demonstrating how emerging-market multinationals can learn from the strategic failures of developed-country multinationals. The research explores the interplay of environmental and management-related factors that contribute to unbalanced attention, ultimately causing underperformance and market exit. The report delves into the concepts of dynamic capabilities, the attention-based view, and organizational ambidexterity to provide a comprehensive perspective on how firms can navigate the complexities of international expansion and achieve sustainable competitive advantage. The methodology employed is a historical approach, relying on archival records to provide a deep understanding of the subject and to develop a new perspective on the challenges of global market strategies.