Tesco's Globalization Strategies and its Success in South Korea

 
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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : BSTR242 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

Globalization | International Business
Case Length : 20 Pages
Period : 1995-2006
Organization : Tesco
Pub Date : 2006
Teaching Note : Not Available
Countries : South Korea
Industry : Retail

Abstract:

The case focuses on the UK based Tesco's globalization strategies and its successful foray into the South Korean market. One of the largest retailers in the world, Tesco's initial experiences with globalization was not successful. However, subsequently Tesco started localizing its stores and products according to the international markets. It entered South Korea in the year 1999 by forming a joint venture with a well established local retailer -Samsung. The joint venture helped Tesco acquire in-depth knowledge of the market and also helped it acquire the best store locations. Tesco began operating in the country under the well established 'Home Plus' banner. Tesco localized its stores according to the preferences of the Korean consumers and brought in some of its global best practices into the country.

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

The company's operations grew rapidly in South Korea and it emerged as the second largest retailer in the country.

Issues:

Evaluate Tesco's globalization strategies

Study and analyze the entry and expansion strategies of Tesco in South Korea

Examine how Tesco localized its retail practices in South Korea.

Appreciate Tesco's efforts to integrate its global best practices with local strategies in South Korea

Contents:

  Page No.
Introduction 1
Background Note 2
Tesco's Global Operations 4
International Strategy 5
Tesco's Strategies in South Korea 8
Looking Ahead 13
Exhibits 15

Keywords:

Tesco, Samsung Tesco, Globalization, Localization, International Business, International Expansion, Entry Strategies, Expansion Strategies, Global Supply Chain Management, RFID, E.Land, Retail Industry in South Korea, Store Formats, Hypermarkets

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