Research Proposal: The Strategic Move of Tesco to Enter into the US Market

Research Proposal: The Strategic Move of Tesco to Enter into the US Market
14/04/2011 Comments Off on Research Proposal: The Strategic Move of Tesco to Enter into the US Market Academic Papers on Business Studies,Sample Academic Papers admin

Research Proposal


Jack Cohen-founder of Tesco started its business by selling surplus groceries on a stall in East London in 1919. In 1924, he established a brand name “Tesco” and the first product sold under this brand was Tesco Tea (Tesco place 2009). Tesco continued its journey of success over the years and diversified its portfolio of products into different industries and has successfully opened 2,420 stores in almost 15 counties including the UK till 2009 (Tesco plc 2009). The main strategy to enter into the new markets is through acquisition and joint ventures. It has the largest network of superstores in the UK, almost 167 stores with net revenue of £3 billion (Tesco plc 2009). Tesco deals in diverse range of industries like consumer, financial services, car insurance, CD rentals and telecom etc. (Tesco place 2009). As a part if it’s global expansion strategy, Tesco opened its first grocery store in USA in 2007 by the brand name of “Fresh and Easy” (Butler 2007). Currently it has more than 135 stores mainly in Anaheim, Upland, Arcadia and West Covina. Its U.S. head office is located in California (Ayres 2007).

Objective of the Research

The main objective of this research is to study the penetration of Tesco in the U.S. market from strategic management point of view. Under the umbrella of strategies management, I will study Tesco’s vision and mission, important competitive strategies, SWOT analysis (strengths, weakness, opportunities and threats), marketing strategies, cross country cultural fit (Thompson & Strickland 2003), macroeconomic conditions, Michal porter’s five force model, joint venture and acquisition options, role of Tesco in corporate social responsibility and the role of information technology in this context. This research will help me to understand the important factors which are necessary to consider for the successful entering into the any new market.

Significance of the Research

Where the revolution of information and communication technology has exponentially increased the competition among big multinational corporations (MNC) and started price wars, it also provides them an opportunity to expand and run their business all across the globe from the central location. By considering the benefits like economies of scale and scope, cross cultural fit, cross country subsidization, cheap labor markets, production and distribution advantages, less stringent environmental laws and benefit of profit sanctuaries, many large corporations of the world have expanded their network through franchising, joint venturing and acquisitions etc. (Thompson & Strickland 2003). In the retail industry, some prominent names are Wal-Mart and Tesco (Butler 2007). These expansions have profound impact for the local community and business activities (Thompson & Strickland 2003). So it becomes very important to understand the strategies, role and impact of such huge business expansion comprehensively on individuals, environment, labor market and competition, from all the possible angles. So it is very imperative to understand the potential implications of such business expansions on all the possible stakeholders. This study will be a very valuable source of information for the researchers, society and business analyst and students to know the impact of strategic expansion of a company like Tesco on all the important stakeholders.

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