Tesco
- Submitted by: dontdauth1
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- Category: Other
- Date Submitted: 11/30/2010 02:28 PM
- Pages: 5
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Problem Statement:
Tesco will face several challenges and difficulties in its new expansion into the saturated and competitive United State’s market. Its ambitious plans to create its own distribution channel and bring its own suppliers could be a costly mistake.
Possible Alternatives:
* Carefully research the market to establish its potentials and opportunities.
* Choose the appropriate market entry strategy
* Choose the product line it will sell
* Determine the components of the marketing mix
* Implement suitable marketing strategies
Recommendation:
In order for Tesco to enter the American market successfully, they must have a clear understanding of the market, so that they can develop the right entry strategy and logistic system.
Reasons for recommendation:
Tesco is the UK’s largest grocery chain and it has recently been focusing on the global market. They currently have stores in several countries across Europe and Asia, as well as a large online grocery business. Their goal is to expand through a variety of different avenues all around the world. To be have a successful expansion, Tesco must distinguish itself from competitors such as Wal-Mart, consider convenience stores as a starting point instead of superstores, and focus on the marketing mix to gain the trust and loyalty of the new consumers. In order to do that they mush have a clear understanding of the market, so that they can develop the right entry strategy and logistic system.
When entering a new market, especially one that is very competitive and saturated such as the United States, understanding is very important. Without a clear understanding of the culture, as well as their wants and needs, the United States market will be a very tough market to enter and be successful. Tesco must thoroughly study the market to understand the shopping habits, patterns, characteristics, and attitudes of the particular target market. Before Tesco entered the Japanese market, they...
Tesco will face several challenges and difficulties in its new expansion into the saturated and competitive United State’s market. Its ambitious plans to create its own distribution channel and bring its own suppliers could be a costly mistake.
Possible Alternatives:
* Carefully research the market to establish its potentials and opportunities.
* Choose the appropriate market entry strategy
* Choose the product line it will sell
* Determine the components of the marketing mix
* Implement suitable marketing strategies
Recommendation:
In order for Tesco to enter the American market successfully, they must have a clear understanding of the market, so that they can develop the right entry strategy and logistic system.
Reasons for recommendation:
Tesco is the UK’s largest grocery chain and it has recently been focusing on the global market. They currently have stores in several countries across Europe and Asia, as well as a large online grocery business. Their goal is to expand through a variety of different avenues all around the world. To be have a successful expansion, Tesco must distinguish itself from competitors such as Wal-Mart, consider convenience stores as a starting point instead of superstores, and focus on the marketing mix to gain the trust and loyalty of the new consumers. In order to do that they mush have a clear understanding of the market, so that they can develop the right entry strategy and logistic system.
When entering a new market, especially one that is very competitive and saturated such as the United States, understanding is very important. Without a clear understanding of the culture, as well as their wants and needs, the United States market will be a very tough market to enter and be successful. Tesco must thoroughly study the market to understand the shopping habits, patterns, characteristics, and attitudes of the particular target market. Before Tesco entered the Japanese market, they...