Entry & Expansion Strategy: Tesco in Japan

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Case Details:

Case Code : BSTR297
Case Length : 18 Pages
Period : 2000-2007
Pub Date : 2008
Teaching Note :Not Available
Organization : Tesco
Industry : Retail
Countries : Japan

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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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Background Note

Jack Cohen (Cohen) founded Tesco in 1919 using his bonus from World War I army service. In 1924, Cohen bought a tea shipment from TE Stockwell. The first three letters of 'TE Stockwell' and the first two letters of 'Cohen' were used to make up the name 'TESCO.'

The first Tesco store was opened in 1929 in Edgware, North London.

Cohen was influenced by the supermarket culture in America and tried to introduce this concept in the UK. The company's driving force was the idea: 'Pile it high and sell it cheap'...

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Tesco's Global Operations and Strategy

Tesco's international foray began with its entry into Ireland in 1979 through the acquisition of a 51 percent equity stake in 3 Guys stores owned by Albert Gubay . In 1986, Tesco divested itself of its stake in the stores when it found that customers were rejecting the British products sold there...

Tesco's Entry into Japan

Tesco's first Asian venture was in Thailand in 1998 through a joint venture with the Lotus chain. As it got a good response in Thailand, Tesco decided to expand into other Asian countries, and sensed an opportunity in the Japanese market. Japan was the world's second biggest retail market. There were several opportunities available for companies which provided products and services that offered quality, style, luxury, and convenience. It had a well developed consumer base with high amounts of disposable income...

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