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Strategic International Business Management - Essay Example

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From this paper, it is clear that with the development of international logistics, information technology, global integration and liberalization of markets more and more companies seek the opportunities for international expansion. Tesco is one of the companies…
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Strategic International Business Management
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Download file to see previous pages However, before going internationally, the company needs to address its weaknesses, including frequent product recalls, negative international publicity, and bad accounting practices. The potential target market for Tesco chosen for this paper was the Chilean market. Chile is a highly attractive market for Tesco due to its competitive position in the South American region in terms of economic ranking, openness to Foreign Direct Investment (FDI), basic business requirements and other parameters. Retailing industry in Chile is growing and is forecasted to show positive growth in future. Also, there is a growth of demand for imported, exotic and sophisticated products among the urban population of Chile, which is a good business opportunity for Tesco. Hypermarkets and Supermarkets in Chile is one of the most popular establishments for grocery shopping as this segment has the highest % share. The number of supermarkets and hypermarkets is continuously growing in Chile and indicate that there are growth opportunities for Tesco. Among three market entry strategies suggested, it was recommended to pursue acquisition strategy in order to enter the Chilean retail market.
With the development of international logistics, information technology, global integration, and liberalization of markets more and more companies seek the opportunities for international expansion. One of such companies is the UK-based retailing chain, Tesco Plc. The company already operates in the European and some Asian markets. However, the firm seeks for other markets for international expansion. The aim of this paper is to suggest a potential international market for Tesco’s expansion, to analyze the external environment of the proposed country and to provide recommendations regarding the selection of a market entry strategy for Tesco.
Tesco is a network of retail stores selling grocery, general merchandise, electrical products, apparel and other non-food items (MarketLine Advantage, 2015). ...Download file to see next pagesRead More
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