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Essay / Research Paper Abstract
This 3 page paper looks at how the UK's dominant supermarket; Tesco is able to add value to its' international operations. The paper considers the way Tesco is transferring some of it's core competences to make international expansion successful. The bibliography cites 4 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TEtesvalue.rtf
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Unformatted sample text from the term paper:
been able to place it into a dominant position within the retailing industry. In its home market the firm is able to benefit from a number of competitive advantages,
as the largest supermarket chain was the highest profits it has the cost advantage, aided by the way it can dictate terms to all its suppliers. However, it has
also been able to demonstrate a high level of differentiation, using the loyalty card scheme as a way of creating loyalty within its customers as well as a tool of
gathering competitive intelligence regarding consumer buying patterns (Tesco, 2008). However, Tesco has not been satisfied with its position as a UK supermarket, over the last few years the company has
expanded its operations into international markets, which mostly been successful. However, when entering these new markets the company does not have the same advantage is that it has in
the UK. So, how does the supermarket managed to gain value within its international operations? When thinking of international operations the supermarket is the large international trade Wal-Mart, owner
of Asda in the UK, comes to mind. However, it appears that Tesco is best added value to its international operations than Wal-Mart. In one country; South Korea,
Wal-Mart has had great difficulties, but the Tesco expansion has been a complete success. Tesco has a major advantage over due to its high level of success in the UK,
this has given the both the resources and the expertise in developing markets. When entering an international market, such as Korea, Tesco are making large investments in the setup,
and a choosing the countries to which the expanded very carefully in order to ensure that they can match their competencies is the needs of that market (Thompson, 2007). Porter
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