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Tesco Goes Global

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Submitted By hugo67
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Tesco goes Global
Tesco goes Global International Business International Business

Hugo Friedrich
Hugo Friedrich

ACP IBOM 2014 Spring Session
ACP IBOM 2014 Spring Session

Summary Introduction 3 Tesco’s international expansion began in developing countries 3 Tesco’s winning Strategy 3 Tesco’s know how for Joint Ventures 4 Innovate for winning a crowded market 5 Conclusion 6 References 6

Introduction

Tesco is a multinational grocery and general merchandise retailer based mainly in the UK, Ireland, Europe and Asia founded in 1919 by Jack Cohen. Its turnover was € 80 billion in 2008.
Tesco is the first group of British distribution (1,500 stores just in the UK) and the 3rd World group. Its work revolves around three areas: distribution in the UK, international distribution and financial services.
This case is about Tesco’s International Growth Strategy, we will see why they decided to expand internationally, how they did it in developing and developed countries, which were the risks and which answer gave Tesco.
Tesco’s international expansion began in developing countries

When a firm decides to expand internationally, it has to take decisions like which market to enter, when and which entry mode to use.
Tesco respected one of the most important rules in international Business, to not internationalize until they do not have a good position and control of their situation on their own market. As the company “was generating strong free cash flows senior management decided to expand overseas”.
Tesco agree that best opportunities were not in established markets like Europe and United States because of the presence of strong competitors who know the local market, but in the emerging markets of Eastern Europe and Asia where there are strong underlying growths trends, competitors on those markets were...

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