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Tesco expands in the united states Essay Example

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Tesco expands in the united states

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The grocer entered the California, Nevada, and Arizona markets less aggressively compared to the growth seen in other markets (England & Dubrin 2009, p. Second, the U. market is a highly competitive market for grocers, and one of the major reasons for Tesco’s previous successes was due to the lack of competition. By entering the U. market, Tesco was facing significant competition such as national competitors, local and regional grocers, and discounters (Thompson & Martin 2010, p.In order to compete more effectively in the U. market, Tesco branded itself differently to the American consumers. The grocer marketed itself as a convenient and express grocery retailer with hopes to set itself apart from national grocers such as Wal-Mart, Kroger, and Albertsons (Raab 2008, p. Finally, Tesco entered the U. market organically rather than through acquisitions. When Tesco made the decision to go global they did so by acquiring grocery chains in other countries and through joint ventures, therefore, growing organically was going to be a new venture for the retailer. Although Tesco has seen successful returns through acquisitions in previous ventures, it decided to avoid this strategy for the U. market because of previous failures by other foreign retailers (England & Dubrin 2009, p.Tesco Chief Executive, Sir Terry Leahy, said, "This is a tremendously exciting move for Tesco which will add a new leg to our international expansion. The United States is the largest economy in the world with strong forecast growth and a sophisticated retail market (England & Dubrin 2009, p. After all, Tesco is one of the UK’s most impressive business stories of recent times. It is frequently singled out by detractors, who complain that the business has become “too big for its boots.” Pops have been taken at Tesco’s treatment of suppliers, its levels of customer service, and -somewhat surprisingly- the quality of its processes (Thompson & Martin 2010, p.A recent BBC Whistleblower investigation, which appeared to show a branch of Tesco flouting strict food safety procedures, is one such example. All the same, it is worth bearing in mind that a successful business does not happen by luck or by accident (England & Dubrin 2009, p. In a crowded, fiercely competitive market, Tesco increased its group sales by 8.1 per cent to £43.1 billion last year, with profits of £2. Tesco has also become the country’s

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Dinkhoff, M 2009, Business valuation of Tesco Calculation of different valuation methods and presentation of differences between them, München, GRIN Verlag GmbH.

Haerifar, P 2013, Knowledge management within Tesco, Grin Verlag.

Humby, C, Hunt, T, & Phillips, T 2008, Scoring Points How Tesco Continues to Win Customer Loyalty, London, Kogan Page.

Raab, G 2008, Customer relationship management a global perspective, Aldershot, Hampshire. England, G, & Dubrin, A J 2009, Essentials of management, Mason, OH, Thomson Business & Economics.

Thompson, J L, & Martin, F 2010, Strategic management, Cengage Learning, Andover.

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preview essay on Tesco expands in the united states
  • Pages: 4 (1000 words)
  • Document Type: Essay
  • Subject: Marketing
  • Level: Ph.D.
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