Tesco in China: How Could Things Go So Wrong?

Abstract

The case concerns the experience of Tesco, a major U.K. international retailer in China. Despite favorable macro-environmental conditions, Tesco’s immersion strategy into the Chinese market failed. The case concerns the changing landscape of the retail sector in China and the challenges faced by Tesco and others in this rapidly changing market. Instructors in international business, marketing, and strategy may use this case to highlight the challenges of conducting business in emerging markets, especially in China, where competition for market share, from both global and local competitors, is intense.

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