Transnational Corporation’s Failure in China: Focus on Tesco

• Main Authors: Kim Woohyoung, Kim Hyun, Jinsoo Hwang
• Format: Article
• Language: English
• Published: MDPI AG 2020-09-01
• Series: Sustainability
• Subjects: consumer behavior; Tesco; China; retail internationalization; retail store attribution
• Online Access: https://www.mdpi.com/2071-1050/12/17/7170

Many of the foreign companies operating in China have claimed that they have failed and are constantly deciding on a strategic withdrawal from the Chinese market. We intend to conduct an empirical analysis of Chinese consumers in order to determine the cause of Tesco’s management failure in China. The survey was conducted on those in their 20s or older who had experience shopping at both Tesco and RT-Mart. As a result, a total of 650 copies were distributed to obtain an effective sample of 607 copies, which was used for the analysis. This paper conducted a comparative analysis on Chinese consumers who visited both Tesco and its rival company RT-Mart in China. We found through comparative analysis that Tesco was destined to fail in many areas. It was estimated that RT-Mart was more satisfactory in all factors, including product, location, brand recognition, and employee service.