Analysis of Tesco in Terms of Its Experiences in the Lucrative Market of China - Research Paper Example

The paper "Analysis of Tesco in Terms of Its Experiences in the Lucrative Market of China" is a perfect example of a marketing research paper. The business research topic is “Factors affecting retail patterns in China using a case study of Tesco, which is one of the largest retailers in the world but failed to hit enough market in China. The business significance of this topic is that it will help bring out the factors that affect Tesco as a retail outlet in China as well as the reasons why it failed to crack the Chinese market fully (Kathryn 1; M ai and Hui 60). The results of the study can be used by other big retailers to avoid making some mistakes when it comes to investing in other countries. In the recent economic crisis, it is not a guarantee for a business to survive even in the most developing economies such as the US, UK and other Western European countries (TESCO PLC). Similarly, a retailer investing in the fastest developing economies such as China does not mean that they will enjoy smooth success as it is in the case of Tesco.

• • Problem statement and Background of the study

The Chinese market is not only attractive for foreign businesses to thrive but at the same time, it is very complex to understand and approach. Before retail businesses even think of expanding into the market, they would want to know the factors that will help them succeed as well as the factors that may lead to failure in the market. Tesco Inc. is a very good example to do a study on in regards to the current topic. Tesco’s failure to crack the Chinese market fully can help teach other firms looking to expand to other countries some valuable business lessons. Tesco entered the Chinese market with very high hopes but it failed to make any significant impact as it could not even entice shoppers through its doors and only managed to capture a small part of China’s grocery market, a situation that led to losses from operations. This went on to an extent that Tesco decided to pull its solo brand out of China in 2013 and merge with the China Resources Enterprise (CRE) which operated under the Vanguard brand and this left Tesco with only a 20% stake in the group of companies (Kathryn 2).