Thesis: Tesco’s Expansion into the US

Sample Thesis Paper

“To break into the U.S. market, Tesco’s marketing strategy centers around three key themes: affordability, freshness and convenience” (Shaffer, Gottlieb, Zajfen, Vallianatos, Nyberg and Dreier 2007).

It was in 2005 that TESCO set foot in the US with intentions of an expansion. No loud inauguration took place as TESCO quietly entered the market. However, TESCO’s ambitions were not as minor. TESCO plans on establishing the same presence in the US market as it has established in the UK market. The expansion costs amount to over two billion USD (Shaffer, Gottlieb, Zajfen, Vallianatos, Nyberg and Dreier 2007). TESCO made use of its real estate division to support its expansion by carrying out rapid purchases of land and shortening the number of options available to its competition.

TESCO’s expansion into the US is one that is quite unorthodox in light of the fact that the US market is not known for rapid acceptance of the entry of expanded retailers. In realization of this fact, TESCO has ensured that its expansion is complete and comprehensive in nature by giving special attention to issues concerning its supply chain.

By choosing to enter the US, TESCO has taken on its largest global competitor, Wal-Mart. However, being of a size that gives Wal-Mart competition, TESCO is welcomed by local communities on account of the jobs that it creates and to the fact that is provides food access to communities where the average household income is low.

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