Transnational Corporation’s Failure in China: Focus on Tesco

Kim Woohyoung, Hyun Kim and Jinsoo Hwang
Additional contact information
Kim Woohyoung: Graduate School of Technology Management, Kyunghee University, Yongin, Gyeonggi-do 17104, Korea
Hyun Kim: Sejong University, 98 Gunja-Dong, Gwangjin-Gu, Seoul 143-747, Korea
Jinsoo Hwang: The College of Hospitality and Tourism Management, Sejong University, 98 Gunja-Dong, Gwangjin-Gu, Seoul 143-747, Korea

Sustainability, 2020, vol. 12, issue 17, 1-11

Abstract: 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.

Keywords: consumer behavior; Tesco; China; retail internationalization; retail store attribution (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.mdpi.com/2071-1050/12/17/7170/pdf (application/pdf)
https://www.mdpi.com/2071-1050/12/17/7170/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:17:p:7170-:d:407848

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().