Mr. Bus

4. In March 2006, Tesco announced that it would enter the join States. This represents a departure from its historic strategy of focusing on developing nations. why do you think Tesco made this decision? How is the U. S. market different from others Tesco has entered? What are the risks here? How do you think Tesco will do? In our opinion, Tesco had through with(p) a lot of research before they decide to open in united States market. Tesco believes that severally market is unique and requires a different approach. Tesco engender In the united Kingdom has demonstrated that no single coiffe can entirely penetrate a market.That is why the company has essential a range of formats from convenience stores to hypermarkets that it deploys to meet the needs and opportunities it encounters in each country. One of the reasons Tesco enters the join States market is because they want to build a mail for Tesco. Tesco believe brands are the building blocks of lasting relationships with c onsumers. Tesco want to develop capabilities. A critical part of Tescos culture is an intense focus on learning, developing skills, processes and systems, and then sharing them across international markets to increase the chances of success. join State market is different from others Tesco has entered. Accounting for some 30% of arena GDP, the United State is the worlds largest and most demanding market for almost everything from oil to microprocessors to premium coffee. Companies around the world aspire to do origin in the United State or at least with United State companies in their home markets. By doing so, they learn much astir(predicate) the latest management practices, they can be closer to the cutting run into of innovation, and they can boost their reputations by supplying well known United States firms.The risk for Tesco decide to open a market in United States is, Tesco moved too fast and made too many reproach assumptions about the United States Market. If the conc ept was working, an established and well financed retailer want Tesco would be using the economic downturn to drive out weaker United States players. It will be some risk to Tesco if they open a parvenu market in United States, because they will compete with Wal-Mart their biggest rival in United States. Wal-Mart is the biggest retailer in United States and since Wal-Mart has bought ASDA, Tesco will be assay to compete with Wal-Mart in United States market.In our opinion Tesco will cuckold or struggle in the beginning because they have to compete with their biggest competitor Wal-Mart. Most of the customers in United States used to go to Wal-Mart, since that Tesco will be struggle in a beginning. And from our research we found that none of British retailer has provideed in United States market. But maybe after hardly a(prenominal) months or few years Tesco will be back stronger in United States market and Tesco maybe will be more succeed than Wal-Mart.