The Case of Tesco: Community Promises and Local Priorities

Based in the United Kingdom, Tesco is the world’s third largest grocer, operating more than 7,817 stores and franchises in 12 countries. More than 60 percent of Tesco’s sales space is now located outside the United Kingdom. The company made its first move abroad in 1994, when it set up in Hungary, followed by Poland, Slovakia, and the Czech Republic. In addition to becoming a clear winner in Eastern Europe, the company is now the market leader in Malaysia. Tesco also planned to double the number of Tesco Express stores in Turkey in 2008 and more than doubled its online grocery sales in South Korea – its second most profitable market – since 2007.

Tesco set out a strategy to grow the core business and diversify with new products and services in existing and new markets. Some of their tactics included:

  • Partner with local players in emerging new markets – Tesco entered the US$270 billion a year grocery market in China in 2004 through a joint venture with Taiwan’s Hymall, which it now owns 90 percent. Today, Tesco operates 135 stores in China and has recently closed a deal with the state-run China Resources Enterprise. Tesco has its international sourcing headquarters based in Hong Kong, from where it sources more than 50 per cent of all clothing and 40 per cent of other non-food items. It buys about US$3 billion worth of goods and services from China annually.
  • Cater to local shopping preferences – Tesco is highly flexible in its retailing format to respond to different customer norms and tastes. The company’s stores in Thailand seek to replicate the product selection experience of traditional street markets, with less emphasis on the neatly packaged portions found in many Western markets. Tesco sells live toads and turtles in its Chinese stores, catering to consumers’ preference for shopping in “wet” markets.
  • Source talent globally, staff locally – The company has filled 80 percent of managerial posts in China with people hired locally, consistent with its strategy of acclimatizing to each country and keeping down the number of expatriate employees. At the same time, Tesco has recruited MBA degree holders from Indian consulting firms to staff its global function charged with deploying its global operations around the world.

****

This is an excerpt from the book by: Michael R. Czinkota, Ilkka A. Ronkainen. International Marketing 10th Ed (USA: Cengage, 2013), pg 503.

21 thoughts on “The Case of Tesco: Community Promises and Local Priorities

  1. Heya excellent blog! Does running a blog such as this require a
    large amount of work? I have virtually no expertise in coding but I was
    hoping to start my own blog in the near future. Anyhow, if you have any recommendations or tips for new blog owners please share.
    I understand this is off subject but I simply wanted to ask.

    Thank you!

  2. you are actually a excellent webmaster. The site loading
    velocity is incredible. It kind of feels that you are doing any unique
    trick. Also, The contents are masterpiece.
    you have performed a magnificent process on this matter!

  3. With havin so much written content do you ever run into any
    issues of plagorism or copyright violation? My website has
    a lot of unique content I’ve either created myself or outsourced
    but it looks like a lot of it is popping it up all over the internet without my
    permission. Do you know any methods to help prevent content from being ripped
    off? I’d truly appreciate it.

  4. Great post. I was checking continuously this weblog and I am inspired! Extremely useful info specially the final section 🙂 I care for such info a lot. I used to be seeking this particular info for a very lengthy time. Thank you and best of luck.

  5. I’m amazed, I must say. Seldom do I come across a blog that’s equally educative and engaging, and let me tell you, you’ve hit the
    nail on the head. The problem is something that not enough folks are speaking intelligently about.
    I am very happy I found this during my hunt for something concerning this.

  6. I simply couldn’t leave your web site prior to suggesting that I extremely enjoyed the standard info an individual provide in your guests? Is gonna be again continuously in order to check out new posts

  7. You have some really good posts and I think I would be a good asset. I’d love to write some content for your blog in exchange for a link back to mine. Please send me an e-mail if interested. Many thanks!

  8. After reading your blog post I browsed your website a bit and noticed you are not ranking nearly as well in Google as you could be. I possess a handful of blogs myself and I think you should take a look at speed rank seo, just search it on google. You will find its a very nice tool that can bring you a lot more visitors. Keep up the quality posts

  9. After reading your blog post I browsed your website a bit and noticed you are not ranking nearly as well in Google as you could be. I possess a handful of blogs myself and I think you should take a look at speed rank seo, just search it on google. You will find its a very nice tool that can bring you a lot more visitors. Keep up the quality posts

  10. Hey There !! Get Viral on Twitter, Tweet your message to 1,000,000 real people. If you’re familiar with Twitter you know that you can Tweet to get GREAT exposure for your website, business, product, music, video or cause!

  11. After reading your blog post I browsed your website a bit and noticed you are not ranking nearly as well in Google as you could be. I possess a handful of blogs myself and I think you should take a look at speed rank seo, just search it on google. You will find its a very nice tool that can bring you a lot more visitors. Keep up the quality posts

  12. Hi! I’m Riemenschneid. We’ve heard that bespoke languages tuition are accredited by Harvard University to provide French tuition, German lessons and Spanish tutoring across the globe? Can anyone cast some light on this? Also, how can their 11 Plus lessons be accredited by Cambridge University too?

Leave a Reply