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.
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