TESCO: Market Entry Strategy, Globalization and Joint Venture

This report examines TESCO's market entry strategy, focusing on the use of joint ventures in a global context. The report begins by introducing the concept of globalization and its impact on international business, particularly for a retail giant like TESCO. It then analyzes the effectiveness of using a joint venture as a market entry mode, supported by a literature review and a questionnaire administered to employees. The research highlights the benefits of this strategy, such as shared risk, access to new markets, and the ability to leverage local knowledge. The report also discusses the competitive advantages gained through joint ventures and the importance of effective pricing strategies. Furthermore, the report suggests the potential for TESCO to transition to other entry modes, like franchising, after establishing a strong market presence. In conclusion, the report emphasizes the positive impact of globalization and the effectiveness of joint ventures as a strategic tool for TESCO to expand its business and maintain a strong brand image. The report also concludes that the joint venture strategy is effective based on the views of 20 employees surveyed.

Unit – 11
Research Project

TABLE OF CONTENT
 Introduction
 Research Outcomes
 Conclusion

INTRODUCTION
 Globalisation is the simple process of interaction and integration of all the
companies with different countries so that they will come together as one big
global economy in order to make international trade more easy.
 The chosen firm for this report is TESCO which is one of the leading retail
company in UK.
 Report also describe the effectiveness of choosing joint venture as a market
entry mode by using Literature Review and further using questionnaire, it also
helps to attain the aim of the report.

Research outcomes
From the above, it is easily analysed that in order to enter into new market, it is quite
essential for the firm to use one of the best entry strategy and for this, TESCO uses Joint
Venture because it will help a firm to share the risk and profit at equal ratio.
Using this option as a market entry strategy will be more beneficial as the firm will easily
occupy a good market share in new country and can opt different culture and knowledge
from existing firm.

Continued...
 Overall this entry strategy is quite good in order to sustain its brand image in market.
 From the questionnaire it has been analysed that using joint venture as market entry mode
will help to create high competitive advantages.
 Moreover, the report also find that globalisation is a huge concept and it helps to creates
good integration between the countries and people.

Continued....
 Apart from this, the project also recommended that by using advance technology and
effective pricing strategy, TESCO can also operate its unit at further level of success.
 Then the firm can easily take exit from joint venture and can be uses another mode of
entry such as Franchising which is a rapid expansion strategy which is helpful to gain
high competition in market.

CONCLUSION
 By summing up above report, it has been concluded that globalisation is a simple
process that helps to connect different countries with companies and people.
 Report concluded that joint venture is one of the most effective market strategy which
helps TESCO to operate its unit at different market.
 Apart from this, report also randomly chooses 20 employees of quoted firm who share
their view and from that it has been concluded that Joint venture is quite effective
strategy which helps a business to raise its profit and sustain its brand image in market
as well.