Contents

• Introduction 4
• About Tesco 4
• Retail Industry & Analysis 7
• PEST Analysis for Germany 10
• Political 10
• Economic 10
• Social 11
• Technological 11
• Foreign Market Servicing Strategy (FMSS) Mode of Entry 11
• Conclusion 13
• References 14

Description

The retail supermarket business is rapidly growing all over the world. The big names in the supermarket are looking out to expand their business internationally since they have well established business in their home country. The UK based retailer, Tesco is one of the top ten retail supermarket in the world and has made its presence in 14 countries. Tesco’s maximum profit is earned from the UK. But gradually Tesco’s base in Asian countries are picking up and contributing well. Tesco believes in creating value to the customers and earning their loyalty for lifetime. Tesco follows strong corporate social responsibilities through which it provides healthy products its consumers and maintains high standards in buying and selling of products including raw materials. They contribute a great deal to charity and community services. They also provide a good working environment and equal opportunities to men and women. Thus, Tesco works with high standards and has succeeded in creating their own brand products which have been well accepted by the consumers. Tesco always strives to bring in new strategies in marketing their products and its one of the first supermarkets to introduce online shopping. Tesco has lot of potential to expand its business globally. Currently, Tesco has its outlets in Czech Republic, Hungary, Poland, Republic of Ireland, Slovakia and Turkey. This report discusses the possibilities of Tesco entering German market. Germany already has few supermarkets which are very popular and are known for the low cost and discounted products due to which they already have global presence. The report analyses Tesco’s potentials which can enable them to establish themselves in the German markets. The report discusses the corporate social responsibility of the company which is an added advantage since Tesco takes huge measures to work towards the welfare of the community and the consumers. The report also briefs about the Porter’s five forces to analyze the factors that can influence the company’s strategies in its new location. The report also talks about the PEST analysis to understand the other factors which might need to be considered. On basis of these analyses the report discusses the Foreign Market Servicing Strategy which enables the company to opt for the most effective strategy to establish them successfully in the new location. The mode of entry is decided by Dunning’s three paradigms that are ownership advantages, location advantages and Internationalization. On the basis of this theory the company can analyze the factors which will influence their business. Tesco has already established itself in different countries and has certain international experience. Thus the report tries to bring out the factors that are favorable to Tesco and the concerns which they have to consider and overcome to establish themselves well. Tesco having made a strong mark in the home country as well as few other countries and is trying to explore the rest to expand its business and continue their services towards the well being of the community in every country they work with. Tesco by following its values and corporate responsibility is one of the top retailers in the world.