Market Entry Strategies Case Study

Tesco’s Big Plans To Enter Indian Retail

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Abstract:

UK-based retailer Tesco Plc had global operations, spread over 13 countries. As part of its international expansion, it announced entry into India in 2008. It entered into an agreement with local player Trent to set up cash and carry stores. Though the organised sector accounted for just 2.8% of Indian retailing, it presented a huge opportunity, as it emerged as the world's fifth largest retail market. The case focuses on the entry strategy of Tesco in a regulated, fast growing market. The case presents the Indian retail scenario.

Pedagogical Objectives:

• To analyse Tesco's international growth strategies.
• To understand the characteristics of the Indian retail market.

Keywords :  International retail; Expansion; Business alliance; International market entry strategies; Joint venture; Wholesale cash and carry business; Indian organised retail; Unorganised retail industry; Back-end support; Regulated market; FDI (foreign direct investment); FEMA (Foreign Exchange Management Act); Supply chain management; Capital investment; Competition

Contents : 
Tesco’s Global Footprint
Tesco’s Global Expansion
Indian Retail Scenario
Global Retail Development Index (GRDI)
Tesco’s Entry Strategy for India