Question

Tesco coming to the US:

Why is Tesco interested in the US market?

How did Tesco enter into US market?

What lessons can you learn from Tesco's entry into US market?

Can someone help me answer it in 300 words please

thank you

Answer 1

The US market can prove quite profitable and beneficial for Tesco as it can serve to large customer base with distinct tastes and preferences showing easy acceptance to new tastes and driven to try something, thus encouraging business to establish its operations to target the wide customer base who have the potential of turning into loyal customers. The entry of Tesco into US market will enable the business to bridge the gap between the traditionally operating grocery stores and the new contemporary speciality stores or super markets. Moreover US market becomes attractive because it offers a business friendly environment , effective infrastructure, least barriers to trade and no to very less regulations in the market. Moreover Tesco identified the US diversity, openness to experiences, quality of life, economic affordability etc can act as a big opportunity of business to expand the business. From ease of doing business , access to easy capital, workforce talent to the abundance resources available, US can prove a very profitable market for Tesco which allured the business to enter it.

Tesco entered the market independently, it did not partnered with local executives or businesses neither did it started a joint venture, rather its entry in the market was solo. The company followed a shared vision and targeted the market of California, Arizona, and Nevada through introducing a new retail concept called "a neighborhood market" which enables the customers to get the products most easily accessed and availed. It emphasized on selling fresh produce and meats and focused critically on the quality of products by ensuring that they stay fresh.

The major lessons which I learnt from the Tesco's strategy of entering US market include :

Taking due cognizance of local needs, preferences and expectations of customers inorder to ensure that the product offered matches with their culture, preferences and identities.

Yo establish the business unit in the market which promises fast growing and emerging economies to establish a sustainable existence. Moreover to develop the ability to compete with the intense market competition through incorporating differentiation and positioning strategies.

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Thanks dear student.. Hope I explained well... Good luck.. Rate of satisfied :)