Thesis: Tesco’s Expansion Strategy in the US

Sample Thesis Paper

It was found that Tesco’s expansion strategy in the US is one that based on extensive localization of its products and services. With regard to the need for the development of customized marketing in international expansions as highlighted by Stone and McCall (2004), the research revealed that Tesco has established the Fresh and Easy brand name to create an independent brand to market in the US. It was observed that this Tesco expansion strategy is unique to the US since the company generally considers joint ventures and acquisitions as viable entry strategies for its international expansion campaigns.  Therefore it can be inferred that with regard to entry strategies, Tesco has chosen to pursue none of those mentioned by Luo (1999), Katsioloudes and Hadjidakis (2007) but has chosen to go with the option to engage in Greenfield investment as highlighted by Epperlein (2007) earlier.

It was revealed in support of the findings asserted by Hallwood and MacDonald (2000) that Tesco opted for expansion into the US in order to make up for dwindling profit margins in its core UK operations.  The company plans to open a large number of stores throughout the US in order to ensure that its availability makes it the consumers’ first choice. However, Tesco chose to initiate its expansion by considering the consumer income level of specific region as a key factor.

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