International Investment Analysis of Tesco

A glance of the existence and performance of TESCO in the international market is presented below:

With stated performance, Tesco has planned to expand further mainly in the region of China (Tesco, 2012). The underlying report develops an assessment of Tesco to launch in the Arabian country of Oman. To mention, Tesco already has footings in Arab countries such as Saudi Arabia and Kuwait, etc. Therefore, it is to explore the feasibility of expansion in the Arab world and specifically in Oman along with the region of China. In order to analyze the feasibility of expanding the services to Oman the report analyses the macroeconomic environment of the country, and important factors in the macroeconomic situation of the country that could influence the decision of Tesco of expanding to Oman. Moreover, the report applies Porter’s five forces model on the situation and then competitive strategies have been discussed. Moreover the report also highlights different risks that the company would be exposed to and such risks can be managed.

Oman, officially known as the Sultanate of Oman, is an Arab state located in Southwest Asia. Owing to the strategic location of being situated at the Persian Gulf’s mouth Oman stands on the Southeast coast of the Arabian Peninsula. With Muscat being capital, the glimpse of country highlights is as follows:

The economic condition of Oman has undergone changes since 1970 under Sultan Qaboos who overthrew his father from throwing. Using the uncontested decision making Sultan Qaboos introduced the reforms for the state with development modernization programs. Like other Gulf Countries, the oil serves as the main source of revenue. However, Oman has limited and depleting oil reserves, therefore, the state does not have extensive international involvement in the oil business. This also formed the reason that during international oil crises Oman did not have an immense impact on the economy as other gulf countries.