Executive Summary
This report discusses the expansion of Tesco up to date and analyses their future plans to enter into the North American market. Tesco has been very successful because of its good adaptation to the local environment. Tesco have a very flexible store format with a wide range of food and non-food goods. It is currently expanding at a highest rate than any other international retailer and they do have a very good position in Asia and Europe.
However the venture into the "wild west" has its positive but also negative sides. They will not only have to face Wal-Mart, the major competitor, in all three countries, Mexico, Canada and the United States on their home soil, but other retailers that also are well established.
Other factors that can have a fatal impact are trade barriers, cultural barriers, customs and laws. These will all be explained in detail in this report. Even though Wal-Mart is the market leader of this industry, there are areas, which Tesco can exploit to gain a foot in the door to this difficult and highly competitive industry. The usage of Tesco's club card scheme could be a very good example to gain that advantage. This enables them to collect data about the spending habits and product choices of their customers enabling them to target goods and services more effectively into the new market.
Tesco does have good strategies and also is very able to differentiate their stores from the other North American stores. With their wide portfolio of stores and products, Tesco can exploit and use this to their advantage especially when it comes to the competition with Wal-Mart.
To conclude Tesco can use their six point strategy to good effect and with their knowledge and experience from ...