Case Study Of Tesco

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Register to read the introduction… What is required, according to Clarke and Rimmer (1997), is a research approach that explores “the way in which a retail firm reflects on individual decisions it has made, and how this might influence their perceptions and actions”. From this perspective, it is critical to understand international retail experiences through reflection and analysis, and to identify what has been learned from the internationalisation process. Furthermore, while some researchers in the field have indicated that experience is important for many aspects of market entry and development (Treadgold, 1991; Williams, 1991a, b; Evans et al., 2000; Doherty, 2000) it is clear that these studies do not provide detailed empirical or conceptual understanding of this complex learning phenomenon. For example, this work does not directly deal with the questions: What are the components of this experience? What lessons can be drawn from this experience? How does this experience shape or inform the decision-making process of the international retailer? It would therefore appear that the international retail literature is less developed in considering …show more content…
Tesco used a combination of multinational entry mode strategies within one country. As previously discussed, Tesco entered the central and eastern Europe by acquiring a relatively small chain of convenience stores in Hungary, a supermarket business in Poland and a department store chain in the Czech Republic and Slovakia (see Table II). It was certainly unusual for such a large public company to become involved in these operations, and even competitors at the time questioned the logic of their approach. However, the use of “seed acquisitions” with a view to develop knowledge of the market before expanding organically through store-by-store development allowed Tesco to minimise their own human and financial capital in the face of potential economic and political uncertainty. Some of these small stores would later be closed down and replaced by large hypermarkets nearby. Although Tesco faced criticism and, indeed, pressure from the financial markets, there are sometimes compelling reasons for retaining a small operating presence in a foreign market where international competitors are already established. First, the small presence would facilitate the implementation of an acquisition strategy by securing the necessary contacts and networks into foreign retailers and local suppliers, especially considering the challenges associated with family owned and controlled chains. Second, retaining a direct and small operating presence in a competitors’ major

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