TITLE:
Expansion in the Retail Sector—Market Entry Strategies in Consideration of Formal and Informal Institutions: A Tesco Case Study
AUTHORS:
Daniel Krummel
KEYWORDS:
Formal and Informal Institutions, Indonesia, Market Entry Strategies, Tesco
JOURNAL NAME:
Open Access Library Journal,
Vol.9 No.2,
February
14,
2022
ABSTRACT: Saturated domestic markets and increasing cost pressures, coupled with the expansion of the middle class across emerging markets, create a fertile environment for today’s retailers to tap into new revenue potential abroad in countries like Indonesia. Commerce is an international business, giving retail giants, such as the British retailer Tesco, a wealth of experience in foreign markets. Yet, there are many modes of entry available to them, requiring detailed evaluation in the run-up to expansion. Each of those alternatives bears advantages and drawbacks. This work discusses joint venture, acquisition and greenfield investment as possible entry choices for Tesco when potentially entering the Indonesian market.