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Tesco Case Global Business Expansion Strategy

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1. Why did Tesco's initial international expansion strategy focus on developing nations?

2. How does Tesco create value in its international operations?

3. In Asia, Tesco has a long history of entering into joint venture agreements with local partners. What are the benefits of doing this for Tesco? What are the risks? How are those risks mitigated?
4. In March 2006 Tesco announced it would enter the US. This represents a departure from its historic strategy of focusing on developing nations. Why did Tesco make this decision? How is the US market different from others? What are the risks? How do you think they will do?

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The solution addresses the international expansion of TESCO

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Tesco Case Global Business 2008 (International)

1. Why did Tesco's initial international expansion strategy focus on developing nations? As a supermarket chain, the company wanted to expand where they would have total market share. Many developing nations have never seen a market such as Tesco. It is Tesco's way of feeding the world and turning a profit concurrently.

2. How does Tesco create value in its international operations?
Highly. The company's mission statement reads "create value for customers to earn their lifetime loyalty." (TESCO 2009) The company values its local business as well as its international business superbly. The company also has reported "In 2000 and 2005, they were able cut their prices down by 15%." (TESCO 2009) This is how the business creates value. It values its consumers and the consumers value the brand.

3. In Asia, Tesco has a long history of ...

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