Tuesday, October 14, 2014
Tesco is market leader in Thailand
1. Tesco Lotus's sales in the Thai supermarket industry in 2008
35 billion dollars * 31% = 10,850,000,000 dollars = 10.85 billion dollars
2. lotus's sales increased by 2 billions, and the total size of the Thai market increased by 10 billions
(10.85+2)/(35+10)*100
= 28.6% (Tesco Lotus's 2009 market share)
3. two advantages
- Sales are higher than any other market with lower prices. Tesco Lotus will be able to exert pressure over suppliers to reduce prices because of the volume of its purchasing.
- The market becomes bigger and bigger because Tesco is trying to open new stores and enter new markets. The more market have, the more consumer come. Consumers will be more familiar with the Tesco Lotus
brand and may, therefore, be more likely to use the store.
4. The Thai government should somewhat put restrictions on Tesco Lotus's future growth. The country, Thailand, can lose its own identity since Tesco is the European supermarket which is widely opened of all foreign-owned stores.
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