Explain how products and processes have to be adapted for international markets Product adaptation Product adaptation is the process of modifying an existing product so it is suitable for different customers or markets. An adaptation strategy is particularly important for companies like Tesco that export their products or have shops in markets overseas because it ensures that the product meets local cultural and regulatory requirements. It is worth mentioning that adaptation is also important for companies that want to introduce new products but do not have the funds or resources to develop completely new items. A clear example of what happens when a business does not adapt correctly to a new market is Tesco’s failure in america. There are many factors that made Tesco be unsuccessful in America: It had a lot to do with a miss-interpretation of the data they had collected. It is always necessary to be able to understand the context in which data is collected. Although British and Americans share a heritage and speak the same language, this doesn’t mean they are the same, in fact, they have wide cultural differences. It is a common mistake of UK companies trying to break into the US market to think of the USA as one market. Realistically, it should be viewed more like Europe, the individual states are not different countries, but their markets can have vast differences not only in business practices but in cultural attitudes and approach. Tesco launched on the West Coast of America. Initially in neighborhoods across California in areas considered to be “food deserts” full of fast food outlets. This launch was into a society that uses their car way too much and views shopping as part of their entertainment experience. They might have done better launching on the East Coast, where populations are denser and there is more pedestrian traffic. Other British companies have succeeded on the East Coast such as: ‘Topshop’ and ‘Pret’ however rather than a dash for growth which Tesco took, they have gone for a more gradualist approach. Analysts say in the US getting the right location is a big part in creating success, Tesco got this very wrong. Sometimes it found itself opening aspirational stores in low income areas. It also discovered that finding locations for stores near to its distribution centre was a problem which suggests a lack of market research on their part.