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This paper gives an analysis of the current position of Tesco in entering the Chinese food retail market and difficulties the company has faced. In supporting the argument the paper makes use of a number of models including a PEST analysis, SWOT analysis and Porter's five forces analysis. Additionally, the paper examines the literature about entering emerging markets, highlighting l the need to consider three key areas namely, institutional factors, organisational factors and industry specific factors. Finally, the paper makes a number of recommendations which Tesco may use in order to see continued success in its efforts in China based upon the analysis given in the previous sections.
Five Forces Analysis
Five Forces Analysis
From the Paper:"When considering the strategies which businesses draw upon in entering international business markets, the literature would seem to highlights the need to consider three key areas namely, institutional factors, organizational factors and industry specific factors (Johnson et al, 2008). For this reason the subsequent section of the paper will draw upon tools which highlight each of these key areas for consideration.
"Institutional Factors - These factors may be seen as factors within the external business environment which are largely associated with the macro level environment and include risks in regulation, cultural differences and barriers to trade and entry (De Wit and Meyer, 2004). Lack of familiarity with such conditions in relation to the local market can often be seen as one of the key reasons for the failure of a business in implementing an international business strategy.
"Organisational Factors - Organisational factors may be seen as linked to a resources based view of an organisation and considers what key resources a business has, what makes the business unique from others, what the core competencies of a business are and how the business can distinguish itself from those of its competitors (Grant, 2008). In considering entering an international market, a firm must seek to find ways to best use its unique resources..."
Sample of Sources Used:
- CIA. 2012. China. Available online at: https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html [Accessed on 15/03/12].
- De Wit, B, Meyer, R. 2004. Strategy Process, Content, Context. 3rd ed. Australia: Thomson.
- Hutchings, G. 2001. Modern China. London; Penguin Books.
- Jones, L. 2004. Why Tesco is betting on China. Available online at: http://news.bbc.co.uk/1/hi/business/3893469.stm [Accessed on 08/03/12].
- Krugman, P, R, Obstfeld, M, Melitz, M, J. 2012. International economics. 9th ed. Boston: Parson.
Cite this Analytical Essay:
Tesco in China (2012, September 23) Retrieved July 06, 2020, from https://www.academon.com/analytical-essay/tesco-in-china-151756/
"Tesco in China" 23 September 2012. Web. 06 July. 2020. <https://www.academon.com/analytical-essay/tesco-in-china-151756/>