Business Case Studies, Growth Strategies Case Study, Tesco, UK's Largest Supermarket

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Case Title:

Tesco, UK's Largest Supermarket Group: International Expansion Strategies

Publication Year : 2006

Authors: Himani Bansal, Sumit Kumar Chaudhuri

Industry: Retailing

Region:UK

Case Code: GRS0087

Teaching Note: Available

Structured Assignment: Not Available

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Abstract:
In the mid-1990s, saturation in its domestic market forced Tesco, UK's largest and world's third largest retailer, to expand into foreign markets for sustaining its future growth in the global retail industry. The company initiated its international expansion strategy by venturing into Central Europe, Asia and the US. Despite having sufficient scope to expand globally, Tesco faced challenges like varied customer demands, different cultures and declining sales growth in different markets.

Pedagogical Objectives:

  • To understand both the organic as well as the inorganic growth strategies of Tesco as a part of its International expansion strategy
  • To discuss the market entry strategies adopted by Tesco to enter the US retail market· To address Tesco's challenges in its international expansion.

Keywords : Retailing industry in UK; Global top retailers; Retailing in Asia; Retailing scenario in Europe; Carrefour; China's retailing industry; Localisation strategies; Growth Strategies Case Study; European retailers in the US; Expansion in Asia; Market entry in the US retail market; Wal-Mart; Metro

Contents : 
Tesco in the UK and the Need for Expansion
Tesco’s UK Stores are Divided into Four Formats,
Supermarket Share as on February 2006
Tesco’s International Expansion Strategies
Six Elements of Tesco’s International Strategy
Comparing Wal-Mart, Carrefour and Tesco
Leading Retailers in IGD’s European Retail Index

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