Tesco's Virtual Store in South Korea*

Abstract:

One of the leading retailers in the world, Tesco Plc, has presence in several countries across the world. It followed different strategies to be among the top retailers in every country where it operated. In South Korea, Tesco operated as Tesco Homeplus and was the second largest retailer in the country. In order to sustain and grow in a competitive market like South Korea, Tesco opened a virtual stores one of the underground railway stations in Seoul. The case discusses the factors that prompted Tesco to establish virtual stores and the success it achieved through the venture.

Issues: » Tesco strategies in different markets » Use of technology as a marketing tool Introduction UK–based Tesco Plc, one of the largest multinational grocery and merchandise retailers in the world, was founded by Jack Cohen in 1919. Tesco opened its first store in 1929 in Edgware, London, and its first supermarket in 1956 in Maldon, Essex. In 1969, it opened a superstore in Crawley, West Sussex. To extend its business, Tesco went international in 1979 and opened its stores in Ireland by acquiring Three Guys stores. As a next step, it entered France in 1992 by acquiring the Catteau supermarkets. But Tesco's initial international ventures failed and it exited the markets. In 1994, the company started its operations in Hungary, the Czech Republic, and Slovakia...

Questions for Discussion:

1. What do you understand by virtual stores? How are they different from online stores?
2. What are the advantages and disadvantages of virtual shopping?
3. What are the aspects that Tesco needs to consider before opening virtual stores in other countries?

Key words:
Nestle, Nestle a+ milk, Nestle a+ dahi (curd), Gujarat Cooperative Milk Marketing Federation (GCMMF), Amul, Amul A+, Trademark infringement

* This caselet is intended for use only in class discussions.
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