Tesco in the Chinese Food Retail Market Dissertation

Tesco in the Chinese Food Retail Market - Dissertation ExampleMost importantly, I would like to take this hazard to express my gratitude to my parents who offer me the greatest support and encouragement.Table of ContentsTable of Contents5List of Tables7List of Figures81.0 Introduction91.2 Research Question132.0 Literature Review142.3.1 PEST212.3.2 SWOT262.3.3 The Five Forces272.4 Sustainable competitive usefulness322.5 Factors influencing strategies for achieving a competitive profit in China353.0 Methodology404.0 Result51 4.1 Carrefour Super securities industrys54Organisation Overview 54Operations and care dodging55Domestic Competition 57Competitive Advantage584.2 Wal-Mart58Organisation Overview 58Operations and Business Strategy59Domestic Competition 60Competitive Advantage 605.0 Discussion62Organisation Overview 62Operations and Business Strategy63Domestic Competition 65Competitive Advantage 656.0 Conclusion687.0 References70List of TablesTable 1. The keep down of sales and the amount of chain storesof Carrefour in ChinaPage 33List of FiguresFigure 1.0 Porters Five Forces Model (Porter 2001). Page 201.0IntroductionChinas admittance into the universe Trade Organisation (WTO) in 2001 opened up the Chinese mart to the rest of the world. From the end of 2004, the Chinese government began lifting restrictions on foreign retailers, which enabled retail trading operations that were 100% foreign owned to operate (LaSalle 2005, Chen 2006, Tao 2006). This opportunity was obviously seized upon by retailers like Tesco, Carrefour and Walmart who dominate the foreign-owned food retail market. The Chinese market is particularly attractive as it is not... IntroductionChinas admittance into the World Trade Organisation (WTO) in 2001 opened up the Chinese market to the rest of the world. From the end of 2004, the Chinese government began lifting restrictions on foreign retailers, which enabled retail operations that were 100% foreign owned to operate (LaSalle 2005, C hen 2006, Tao 2006). This opportunity was obviously seized upon by retailers like Tesco, Carrefour and Walmart who dominate the foreign-owned food retail market. The Chinese market is particularly attractive as it is not homogenous and encompasses numerous position markets which represent purchasing power for retailers. This is particularly true of the markets based in the urban areas, as it is reported that there is an income disparity between rural and urban customers. The urban per capita income is three times more than that of rural areas (LaSalle 2005, Chen 2006, Tao 2006), which presents profit to the food retailers. The opening up of the markets in China has too introduced competitive advantage to the Chinese market. Prior to 2004, foreign owned companies had to form joint ventures with Chinese companies and were limited to owning a 65% stake in the business (LaSalle 2005, Chen 2006, Tao 2006). They also had restrictions on the number of stores that could be opened in a geo graphical region, which gave the domestic retailers a competitive advantage. Domestic retailers had access to the entire Chinese market, and as a result they also had the monopoly on the knowledge.