Business Case Studies, Market Entry Strategies Case Study, Tesco’s Entry Strategies, US

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Market Entry Strategies Case Study

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Case Title:

Tesco’s Entry Strategies in US

Publication Year : 2007

Authors:  Dileep Warrier, Saravanan. I.B

Industry: Retailing

Region:US

Case Code: MES0067C

Teaching Note: Available

Structured Assignment: Not Available

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Abstract:
The London based retailer giant, Tesco made its entry into US, by opening “Fresh & Easy” format convenience stores at Arizona. Anticipating this move, Warren Buffet, the second richest person in the world, bought shares of the company in 2006 and its market value went up. Berkshire Hathaway invested $1419.59 million in Tesco’s expansion projects. It had the ability to roll out multiple formats and adapt to the local tastes of consumers. It was able to maintain its leadership in UK, by pushing Wal-Mart ASDA to third position, in terms of market share. Tesco had undertaken meticulous research about US retail market and preemptively acquired real estate for its retail operations at important locations. For independent and niche retailers, the growth of Tesco would be a great challenge and they would eventually need innovation and customer segmentation strategies to survive. But for Tesco, US was new turf where there were more than 50 convenience store chains. 7-eleven and Famima,, which have already established convenience store chains in US.

Pedagogical Objectives:

  • The case study will familiarize the students with
  • US retail industry and the concept of convenience stores
  • Tesco’s customer retention and market entry strategies
  • Factors which lead to the success of a retailer.

Keywords : Tesco; Wal-Mart; 7-Eleven; Food Retail; Market Entry Strategies Case Study; Convenience Store; Territorial radio; Terry Leahy; Famima; Fresh & Easy; ASDA; Tesco Metro; Warren Buffet; Tesco’ Steering Wheel; Tesco Express; tesco.com

Contents : 
US Food Retail Market
Tesco- Retailer Giant in UK
Tesco’s US entry & Likely Competition
Tesco – International locations
Store Formats of Tesco in UK
Tesco Superstore, Newcastle
Fresh & Easy format- Logo-US
Tesco’s SteeringWheel Strategy

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