RUNNING HEAD: TESCO FRESH & EASY [Type text] [Type text] [Type text] TESCO: FRESH & EASY
Proposal for DissertationTesco Fresh & Easy2013Table of Contents
IntroductionGlobalization brings both opportunities and challenges. In order to participate in global market, an international enterprise has to compete effectively. This will depend on rapid technological innovation, effective strategic management of knowledge, and a clear focus on higher value-added goods, services and industries (Grey et al. 2011, p.4).Tesco plc is an international grocery and general merchandise retailer from United Kingdom. Along with the US based Wal-Mart, France based Carrefour, and Germany based Metro AG, it is among the top four retail chains in the world. Depending on the measure used, it is third-largest retail chain by revenues and the second-largest according to profits reported, surpassed only by Wal-Mart. After spending the most of the 20th century focused on domestic (UK) grocery retail market, Tesco started diversifying geographically, as well as expanding its retail domain (to books, clothing, electronics, etc) and expanding on foreign markets since the beginning of the last decade of the 20th century (Tesco PLC, 2010).As many of its competitors in retail business, Tesco is relying on its broad experience and innovation culture to contribute to its growth and transfer of know-how and technologies to new markets in the globalized world. When analyzing Innovation Development in highly competitive industry, such as retail, it is important to gain understanding on the underlying factors that affect expansion-related decision making and new market entrance, having in mind the fierce competition expected from other global retailers, as well as established and well-known local ones, as was examined in a recent study (Tidd & Bessant, 2009).In early 2006, Tesco management started making plans to enter United States retail market starting in 2007. They focused on the West Coast of the US, most notably California, Nevada and Arizona states. Tesco devised strategy based on their experience in other foreign markets that were entered starting with Eastern Europe and following with the penetration of Asian markets. The starting position was very positive, due to the fact that in the period of little over the 10 years time, Tesco managed to refocus from entirely domestic chain to truly internationalized one, evidenced by the fact that in such short period, Tesco achieved huge success of having over 50% of its operations in these newly penetrated markets.The US market was to be entered via a completely new convenience store format named 'Fresh & Easy Neighborhood Markets' based on Tesco's innovative Express stores model. However, due to the market specifics, the concept had to be redesigned and re-evaluated...