Most Important Factors of Tesco Essay

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Most Important Factors of Tesco Tesco first launched their international expansion in 1994. After 11 years their sales have grown to contributing 20%(£7 billion) of the total turnover has been from overseas sales. The success of Tesco expansion overseas has mainly been down to the strategy of seeking out new markets in an early growth stage. These markets have few and week competitors and lots of potential. Tesco expansion overseas has mainly been in Eastern Europe and the Far East. Tesco has set up in thirteen countries…show more content…
In December of 2001 an antitank missile hit the office of EL AL Israel Airline. However the Thai authorities believed that the target was a Tesco building adjacent that had received numerous bomb threats previous. The government may also be taking action against businesses in order to protect their economy. The government of Malaysia has recently taken action against the large investors in the retail sector. They have recently put a five year ban on any new hypermarkets being build in the countries top three cities Kuala Lumpur, Penang and Juhor Bahru. The Malaysian government have also stated that they are concerned with the negative affect that Tesco may have on the economy. As a result they have stated that any new hypermarkets that are being planned, are to submit their plans two years in advance. They have also required a socio-economical study to be carried out in advance. This has effect Tesco strategy as they may have to result in building smaller stores where there range is less. Economic factors are those that affect the purchasing and spending habits of the consumer. When the economy is decreasing there will be less disposable income and consumer spending will decrease. Even though the countries economy is low, it does not mean businesses cannot benefit if the right strategy is deployed. With the right strategy
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