Thesis: Consumers Response to Tesco in US

Sample Thesis Paper

The initial response of US consumers to Tesco was observed to be considerably favorable. Furthermore, with regard to the need for addressing the needs for consumers as reflected by Iyer (1999), it was revealed that Tesco has made special considerations for the needs of consumers with regard to the implications of the global recession.

The US economy is currently in a state where Tesco will have to wait for a period of two to three years before it can report profits for its expansion into the US. The study revealed that consumer bargaining power is not more than moderate while the threat of new entrants is influenced by the size of the entrant. The threat of substitutes was found to be a critical factor in the success of Tesco’s expansion into the US alongside a weak degree of bargaining power held by suppliers in the US.

In consideration of the above discussion, it would be justified to bring this research to a conclusion with the statement that Tesco has chosen to give considerable importance to its strategic move into the US market. While there are chances that unforeseen fluctuations in the US economy and the subject industry may influence the turn out to be otherwise, the current analysis shows that Tesco’s move is a successful one. It will require Tesco some time to acquire a considerable degree of momentum. While it would not be viable for Tesco to expect rapidly rising profit figures, the revenue stream will continue to broaden as Tesco continues to open new stores. The following chart shows a projection of how Tesco should expect to channel investment towards its expansion into the US and how profit streams can be expected to move with respect to revenue streams.

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