Tesco PLC. Company Analysis Essay Example | Topics and Well Written Essays - 1000 words

Tesco PLC. Company Analysis - Essay Example Since 1997, Tesco has recorded tremendous growth making it the leading food retailer in the United Kingdom (Quelch 2010, p.1). This was spearheaded by good leadership under CEO Terry Leahy who emphasized on innovation and customer satisfaction (Quelch 2010, p.2). One of the main issues that are of great concern is inability of Tesco plc to penetrate in United States market despite the market having only few competitors such as Raphs, Vons, Albertsons and Stater Brothers. This is despite the company’s strategies to send 50 managers to learn more about the market and come up with appropriate procedures to penetrate them The main objective is to analyze if it is important for the company to go ahead with the market penetration process or it’s supposed to withdraw from the market as profits obtained cannot be compared with the investment that the company used i.e. $700 in order to position itself in the market (Quelch 2010, p.2). The predecessors such as Sainsbury, Marks and Spencer had to sell their ownership to other business as they found the market unfavorable for the business to thrive. As a result, one of the main objectives of the paper will be coming up with the appropriate conclusion on if it is profitable to venture in United States market or the business. It will also try to analyze why many retailers withdraw from the United States market. Tesco Company has experience on various markets. The company is the major retailer in United Kingdom with branches in Hungary, Ireland, and France etc. This gives the company a variety of strategies to select from in order to penetrate the US market (Quelch 2010, p.3). On the other hand major weakness that this knowledge has is that it makes it hard for the company to select the appropriate strategy to apply in the US market. This is because different markets react differently on the entry strategies applied by the companies. Tesco companies have large financial reserves that can