Tesco's Globalization Strategies and its Success in South Korea

Tesco entered Ireland in 1979, when it acquired a 51% equity stake in 3 Guys stores owned by Albert Gubay. In 1986, Tesco divested itself of the store when it found itself unable to sustain its operations in the country as customers were rejecting the British products that it sold in its stores. During the late 1980s and the early 1990s, Tesco examined the options available in the US and European countries, after the government's regulations regarding the out of town stores.

In December 1992, Tesco entered France by acquiring an 85% equity holding in Catteau supermarkets, which operated under the Cedico brand with 72 superstores, 7 hypermarkets, and 24 small stores.

Tesco had learnt some lessons on globalization from its bitter experiences in France and also from other companies like Marks & Spencer , the UK-based clothing retailer. Its experiences in France gave it an insight about the functioning of different markets.

Tesco realized that business strategies that were successful in the UK would work in the other markets only if they were given a local flavor. The company also learnt that it was important to hire local staff and use personnel from the UK to spread knowledge about the company.