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Tesco in China

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Tesco in China

This text published on January, 2006 in “The Guardian” focuses on the company Tesco a big channel of distribution. In fact, Tesco decided to grow up, and set up on China’s market. Tesco was created in 1919 by John Cohen, nowadays, it’s the first channel of distribution in the United Kingdom and the fifth in the world. Its activity is around three points, distribution in the UK, distribution in abroad and financial services. In this article, the author put the light on Tesco desire to set up in China. First we can read Tesco doesn’t arrive to conquer the United States. And then, the author focuses on the plan of Tesco to conquer China and its project to set up too in India.

First of all, in the article, the author decides to introduce with the fact, Tesco never conquer the United States. In fact, he explains American distribution market is saturated. On the one hand, In the United States, distribution market is held for 80% by the first brand whose name is “Wallmart”. On the other hand, without to count wallmart, there are too many channel distribution in the USA, market is saturated and Tesco haven’t possibilities to enter and doesn’t want to lost money in this crazy plan. In this article, we can see in the beginning and at the end, Tesco consider the USA “as a potential graveyard” for the British company. So Tesco try to make another plan and want to expand its chain in another country like China or India.

Therefore, the author continues with the second plan of Tesco, to set up in China. In fact, in September 2004, Tesco set up in China for the first time and it have a big plan to conquer China market. The article was written in 200

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