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unit 5 A3
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unit 5 assignment 3 International business! received distinction and links are included as well.
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P8 - Explain how products and processes have to be adapted for internationalmarkets by a selected business.
I'll be investigating Tesco's for this report. I will examine the various approaches they
take to effectively conduct business internationally. I will also discuss the various
resources that Tesco uses to enable profitable foreign trade.
Tesco is a leading grocery retailer in the UK. Third in size globally, Tesco operates in
a number of European and Asian nations, including Ireland, France, Poland and 14
others. Tesco has over 450,000 workers and services that offer customer support to
foreign clients in their stores and online as a result. Tesco, which has almost 7,000
locations worldwide, strives to provide better customer service, higher-quality items,
and more competitive rates abroad. Tesco has grown by incorporating the
acquisition of new locations, offering retail services, and attending to the demands of
its clients. Tesco's primary goal is to provide customers with a slightly better
experience every day. Keeping previous customers happy is crucial since they are
more likely to visit Tesco again and purchase its goods.
Tesco adapts its goods for consumers in foreign markets by doing so in various
countries. An example of this is that they stock up on more rice varieties in Thailand
than they do in the UK. This is due to the culture of Thailand. Tesco Lotus stocks a
large range of fresh local food and provides a wide selection of ready-to-eat meals
that are in line with Thai culinary preferences, like spicy curries and stir-fried dishes.
The product range is greatly inspired by local tastes. Due to this they were able to
gain revenues of “2.34 billion in 2009”. To cater to the time-pressed and tech-savvy
populace, Tesco's subsidiary Homeplus in South Korea innovated by setting up
virtual storefronts in tube stations where commuters could shop by scanning QR
codes on their cellphones. “Homeplus in South Korea is Tesco’s most successful
international business with revenue of almost £4,984m in 2010/11.” This modification
not only transformed the shopping experience but also easily incorporated it into
South Koreans' everyday lives. Tesco modified their supply chain management in
Central Europe to be more regionally focused, which required building ties with area
suppliers to guarantee freshness and save transportation expenses. Tesco was also
able to more closely align its product offerings with local tastes because of this local
sourcing strategy. Tesco's dedication to tailoring its products to the unique needs of
each area is evident in each of these examples, which highlights the importance of
this approach for the company's success in the global retail industry. When they
enter a new market, they carefully analyse the variations in culture, nutrition, and
lifestyle and modify their business strategy to be competitive and relevant in the
many environments they work in.
, Tesco's pricing strategies vary depending on the country. For instance, Tesco may
provide a large selection of products, including more expensive organic options and
luxury brands, in the UK, where income levels are generally high. Conversely, Tesco
Lotus may choose to concentrate on offering more reasonably priced goods and
discounts on necessities in order to appeal to the local buying power in nations like
Thailand, where the average income may be lower. Value products that give quality
at a lower price point to guarantee they are accessible to the bulk of shoppers may
be more important in Thailand than 'Tesco Finest' categories, which cater to clients
searching for a premium shopping experience in the UK. It all comes down to finding
the ideal balance and making sure that the product prices represent the state of the
local economy. Tesco uses cross-cultural advertising to reach a variety of customer
demographics. They create their marketing efforts with the local values and cultures
of the nations they do business in mind. For instance, Tesco may employ more
family- and community-focused messaging in Asia, particularly around regional
celebrations and holidays. Convenience, quality, and a broad selection are often
highlighted in UK advertising, which reflects the country's busy lifestyles and varied
consumer preferences. Tesco is able to remain current and appealing in a variety of
markets because of its customised approach. Tesco also modifies their menu in
several nations to accommodate local eating customs and religious beliefs. For
example, in nations where Muslims make up the majority, a variety of halal items are
available to comply with Islamic dietary regulations. On the other hand, people may
abstain from beef products in nations where there is a sizable Hindu population as a
demonstration of respect for their religious convictions. Tesco's success in foreign
countries can be attributed to their ability to adjust their product offers to suit the local
needs of its customers. Given the enormous number of vegetarians in India due to
religious and cultural beliefs, it seems possible that Tesco would stock more
vegetarian products if they were located there. Tesco may run specific Easter and
Christmas promotions in Poland, a country with a high percentage of Catholics,
featuring products that complement traditional holiday feasts. Tesco makes an effort
to modify their selection to accommodate regional dietary and cultural norms.
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