Tesco Entering in China

1244 WordsMar 6, 20115 Pages
1) What is the case talking about in brief: The case focuses on the entry and expansion strategies of Tesco in the Chinese market. The Chinese retail sector offered huge opportunities for international retailers with the average annual growth in the last 20 years being around 15%. Tesco entered China in 2004, after several successful Asian ventures including Thailand, South Korea and Japan. The Chinese market was a very different market in terms of tastes and preferences from the other markets that Tesco operated in. Therefore, it decided to enter the country through a joint venture so that it could learn about the market through its partner, which had operated in the market for several years. Also, by the time Tesco entered China,…show more content…
7) Organization’s capabilities in terms of : a) Resource Positions b) Companies internal value chain  Inbound logistic: Its own branded products along with products of local merged or acquired retailers  Operations: Displaying the items on the rack for Chinese customers to touch and feel it  Outbound logistics: Checkout counters  Sales & marketing: Through local retailers’ brand name initially and then bring its own brand in front of consumers  Post sales services: Tesco Clubcard for its customers c) Product portfolio: food and non food items including furniture, clothes, etc. 8) Strategic operations available: • Cost leadership: Low priced products available at Tesco stores. 9) Resource availability : Tangible resource • Financial resources: Tesco’s huge capital • Physical resources: Racks to store and display products • Technological resources: Transportation Intangible resources  Organizational knowledge resources: UK based Chinese students and Chinese senior management team  Organizational process resources:  Managerial expertise to understand threats & opportunities: Expertise team of Corporate Affairs  Managerial belief and action to acquire and preserve all types of resources: Company’s well established Values  Relationship across supply chain (suppliers, customers, channel member, Regulatory body): Suppliers are merged or acquired local brands of retailers who

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