The Success of Tesco's International Expansion in South Korean Market. Examination and Analysis of Key Factors

Bachelor Thesis from the year 2011 in the subject Business economics - Trade and Distribution, grade: A, University of Kent, language: English, abstract: This study examines the international business strategies adopted by Tesco for its expansion and development is South Korea. Tesco is a global brand and a world leader in the retail food industry. Using qualitative secondary information, this dissertation presents a market analysis and discusses the FDI policies of the target market to analyze the external factors contributing to the expansion of the company. The findings suggest that the expanding retails sector and the favourable government policies led to the expansion of Tesco in South Korea. Tesco was well suited for its expansion because of the firm's internal resources including size, experience and expertise. The dissertation concludes that the multi-national or multidomestic approach adopted by the company was underlying success factor that contributed towards the success of Tesco in South Korea. Its multi-domestic or multinational corporate structure and strategy is clearly reflected through its market entry, leadership, business strategies and its growth and expansion strategy. The dissertation also highlights several initiatives undertaken by the company since 2008 that lead to exemplary success and compares it with its competitors' unsuccessful strategy.