Introduction
One of the best opportunities that every industry should not let pass is opening another enterprise in another country. The opportunity for expansion is included in the long-term goal of every business enterprise. Since the impact of the globalization cannot be avoided, there is a turn of the businesses to integrate their system and application of technologies. Through the aid of the extensive market researches and analysis of the macro-environment, the entry of the business in the foreign is possible. Albeit there are other factors that needed to be considered, still there are motivational factors that lies within the foreign that continuously motivating the organization.
Motivational Market Environment
Tesco, as one of the successful marketers in the Europe, is fully open for the expansions. The organization’s operation in the central Europe expanded and influenced the other countries such as the Hungary, Poland, Czech Republic, and Slovakia. The phases of the expansion are also identified as the organization’s plan in attempting to connect all the chains in the market. In addition, the acquisition of the stores is also part of the strategy which gained additional growth in their sales. The investigation of the growth sales of the organization reached the other countries as much as in Asia and their retailing market. According to various analysts, the Tesco can gain advantage among the competitors if they successfully reached the other country where there is unsaturated retail market (Yoruk and Radosevic, 2000). This idea was proven by the organization as they start to invest in most of the countries in Asia such as Thailand and South Korea. Slowly, the organization is emerging in the markets in Taiwan and continuously researching in the environment of Malaysia.
Expansion Strategy of Tesco in Unsaturated Market of Malaysia
Unlike other retailers, the Tesco is still slow in exploiting the organizations potential in both Western and Asian markets. When Tesco entered in the market after the attack of the crisis, it has a potential in contributing to the transitioning of the economic situation and make it worse. One possible hindrance that the organization should consider is the status of the foreign territory that makes the investigations prolong because of the various influences. Tesco can find its stable position and be benefited when there is a strong presence of transition because of the two fold reasons. Firstly is that hypermarkets already exist in Asia, and Tesco already acquired the hypermarket chains, and second is the introduction of the emerging middle class that gathers more opportunity in shopping at a hypermarket (Yoruk and Radosevic, 2000; Tidd, Bessant, and Pavitt, 2001).
The confidence of the Tesco to create a market in Malaysia can be ambitious but because of the choice of the locations such as the non saturated markets that allows the market share to be generated, the success for the Tesco is foreseeable. In addition, the adaptation and adoption of the organization on the technologies aided the Tesco’s success, not only in the store management but also in training and in networking of the suppliers. Based on the organization’s philosophy in exporting, the given service can be only emphasized through the training and the network of the supplies which is possible in the operation in the foreign markets (Yoruk and Radosevic, 2000).
Market Environment of Malaysia
Creating a market in Malaysia can be the best opportunity for the Tesco because of the two things. First, there are opportunities in the technology that is very advantageous for Tesco. The technology sector and its application in the market, however, face new challenges. But through the recognized challenges, the Tesco might contribute towards structuring the better technology that can be more efficient and effective. Second, the Malaysia can act on the current economic conditions such as the issues on recession because the pride of the country’s wealth on the raw materials can contribute to the additional revenues and promises the future incomes (Brandt and Lim, 2009).
Both factors can influence the current structure of the market. The entry of an investor in the market facilitates the market liquidity while ensuring the integrity. The activity involves in the trading industry are suited and conducive in the retail markets. The competition in Malaysia, however, may weight in Tesco but through the adoption of the trading platforms, regulations, and the discovery of the efficient cost and price, there will be a centralized system (Singh, 2001).
Conclusion
The attempt of the organization to enter in the foreign only reflects the aspiration or the goal of the organization to continuously aim for success although there is an available threats due to the globalization. In this kind of action, the Tesco must provide valuable evidence that there is an opportunity in the foreign market through reviewing the information and other conducted researches.
References:
Brandt, T., & Lim, M., (2009) “Market Watch 2009” The Environmental Sector in Malaysia. Accessed 17 March 2010, from http://malaysia.ahk.de/fileadmin/user_upload/Dokumente/Sektorreports/Market_Watch_2009/Environment_E__09.pdf
Singh, R.A., (2001). “The Development of a Corporate Bond Market: The Malaysian Experience”. Accessed 17 March 2010, from http://www.ifc.org/ifcext/publications.nsf/AttachmentsByTitle/Building_Local_Bonds_Chp.8/$FILE/Building_Local_Bonds_Chp.8.pdf
Tidd, J., Bessant, J., & Pavitt, K., (2001). “Managing Innovation: Integrating Technological, Market and Organizational Change”, John Wiley & Sons, New York.
Yoruk, D.E., & Radosevic, S., (2000). “International Expansion and Buyer-Driven Commodity Chain: The Case of Tesco”. Accessed 17 March 2010, from http://profesores.ie.edu/enrique_dans/TESCO/international%20expansion.pdf
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