TESCO’S INTERNATIONAL EXPANSION When domestic sales of the UK's retail giant, Tesco, slumped, it fell back on its second
Posted: Wed Jul 06, 2022 6:15 am
TESCO’S INTERNATIONAL EXPANSION
When domestic sales of the UK's retail giant, Tesco, slumped, itfell back on its second-largest market, Asia, which accounted for30 per cent of its total profit. Tesco's success in Asia, andspecifically in South Korea – is currently its largest marketoutside the UK.
In its pursuit for growth, Tesco's move into Korea was asignificant one, which also contributed towards building marketshare internationally. The company made some smart moves in theirKorean expansion, most notably while partnering with Samsung, theleading Korean conglomerate, and embracing the Korean way of lifeby operating stores as local businesses and community centres.Tesco also made a smart move by employing nearly 100% Koreans onstaff, with only 4 British employees out of 23,000. Reportsindicate that Tesco's intelligent strategy has won over shoppers inSeoul, with 25% of Koreans signed up for loyalty cards and sales inthe billions, finding success in "cracking the Asian tiger," wherecompetitors such as Carrefour and Wal-Mart have failed. The successof the business is all about Tesco operating it as a localbusiness, taking full account of the Korean way of life.
(Extracted from Online College (2020). ClassicCase Studies Every Business Student Should Know.https://onlinecollege.org [Accessed on 31 March 2020])
Question 1
(10marks)
While referring to the case extractabove, discuss the Growth strategies proposed by Igor Ansoff, andrelate with justifications, which particular strategy did Tescochoose in its pursuit for growth.
(15 marks)
(20marks)
Provide five reasons why Tesco might havechosen Samsung as its strategic
When domestic sales of the UK's retail giant, Tesco, slumped, itfell back on its second-largest market, Asia, which accounted for30 per cent of its total profit. Tesco's success in Asia, andspecifically in South Korea – is currently its largest marketoutside the UK.
In its pursuit for growth, Tesco's move into Korea was asignificant one, which also contributed towards building marketshare internationally. The company made some smart moves in theirKorean expansion, most notably while partnering with Samsung, theleading Korean conglomerate, and embracing the Korean way of lifeby operating stores as local businesses and community centres.Tesco also made a smart move by employing nearly 100% Koreans onstaff, with only 4 British employees out of 23,000. Reportsindicate that Tesco's intelligent strategy has won over shoppers inSeoul, with 25% of Koreans signed up for loyalty cards and sales inthe billions, finding success in "cracking the Asian tiger," wherecompetitors such as Carrefour and Wal-Mart have failed. The successof the business is all about Tesco operating it as a localbusiness, taking full account of the Korean way of life.
(Extracted from Online College (2020). ClassicCase Studies Every Business Student Should Know.https://onlinecollege.org [Accessed on 31 March 2020])
Question 1
(10marks)
While referring to the case extractabove, discuss the Growth strategies proposed by Igor Ansoff, andrelate with justifications, which particular strategy did Tescochoose in its pursuit for growth.
(15 marks)
(20marks)
Provide five reasons why Tesco might havechosen Samsung as its strategic