Recently, Tesco announced that the firm was ending its US venture. Indeed, Tesco appears to be the most recent British retailer to have encountered with failure in the US. Indeed, over the past decades, several major firms such as Sainsbury’s have been compelled to review their overseas ventures (Butler, 2012). These firms have incurred significant deficits in their quest for a new market. However, there seems to be evidence that some of these companies have been able to establish themselves in some foreign markets. For example, Tesco has failed in Japan but has proved to be a success in South Korea.
Over this past century, there has been an evident emergence of multinational ...view middle of the document...
It is further stated that firms tend to target their marketing efforts onto such economies because of the rising purchasing power of the middle class and emergence of a conspicuous consumption. The latter relates to the practice of spending in a bid to exhibit wealth.
In the same way, developed countries and markets are equally targeted by major retail conglomerates. Amid the new urge for investment in emerging markets, there seems to be evidence on a possible resurgence of developed markets. For example, Rapoza (2015) states that several developed countries such as the US, Japan and Germany will be auspicious for investment for coming years. This speculated shift could be initiated by the fact that countries such as Japan are implementing new fiscal policies which may lead to more favourable conditions for investment. It has been reported that Japan are set to significantly drop the corporate tax to nearly 20% in the long term (Rapoza, 2015). Another important aspect revolves around the US and the suggested consolidation of the dollar while a boost in US equities is equally expected (Rapoza, 2015).
In the quest for substantial growth and revenue, it could also be the case that the firms’ strategies fail which may lead to significant deficit. It can be described as a ‘high risk or high reward’ situation for these corporations. Even if calculated risks are taken, some factors remain unforeseen which could make the investment vulnerable to failure. It is worth investigating this particular research area to compare and contrast the trends in the different market approaches of these multinational corporations in different countries. This analysis seeks to find factors which led to the hindrance of foreign ventures of 2 major retail conglomerates namely Tesco and Wal-Mart. Moreover, another purpose of this study would be to suggest solutions for a better marketing plan by examining some of their successful foreign business endeavours.
1. Various qualitative methods have been developed to consider the internationalisation of retailing within the corporate fields.
2. The project aimed to discuss case studies in a bid to find possible strategies for foreign retailing ventures.
3. It was decided that secondary research was be more adequate.
4. Literature available at Robinson Library provided useful insights.
5. Further online sources provided vital information.
6. Such methods allowed an extensive research platform given the time and word count constraints.
There is growing recognition that globalisation has significantly influenced retailing and its approach towards expansion. Regardless of the size of their operation, firms are increasingly attracted to prospect of international expansion (Mun and Yazdanifard, n.d). This phenomenon may have been initiated by the uncertain conditions of major economies in the US and Europe (Corstjens and Lal, 2012). It may also have been instigated by the prospect...