International Retailing Strategic issues

Click to edit Master subtitle style

Page 1

International Retailing
Retailing is now global in nature Its defined as the operational presence of retail institutions across the globe either independant or as JVs. It means that global presence of retail institutions.
Ex : Wal-Mart

Page 2

Basis of International Retailing strategy

Core Competencies Competitive advantages Home country

Competitive advantages Host Country

Strategic Decisions- What ,When Where, How International Operations PERFORMANCE

Page 3

1. What store formats and formulae should be

internationalised in priority.

Key strategic decisions

2. In what country or group of countries should

investment occur?

3. When international operations should be done? 4. How internationalisation be achieved?

Page 4

Strong Retail business in home market Size of the domestic market. Exportability of the retail formulae Control of the supply chain

Essentials for International success

Exportability of the format and competitive advantage

Page 5

Size of the domestic market There should be scope for future development. Ex :- Large domestic market of Wal-Mart has helped to subsidize considerable losses on international ventures Exportability of the Retail formula Retail formula successful in one country may not be successful every where. Ex : Failure of French hypermarkets @ US in 1990s

Page 6

Its the contraction of term globalisation and localisation.

Glocalisation

It is the process of adopting local retail mix which includes store format, Sales offer, pricing, service personnel etc based on the culture and traditions of the country where the store is going to operate. Think Globally Act Locally
Page 7

P International Retail Cycle

h
Page 8

G e o g r a p h i c

Choosing a Target market\Country

Page 9

S u b s i d i a r y J o i n t V

Choosing the entry mode

Page 10

Phase

Prerequisite requisitecritical thresholds and Pre Critical thresholds

Strong market base in domestic markets. International perceived added value Size of the host market.

Pre-entry

Entry

Value for the host country Acceptability and adaptation in the host country. Operational cost

Growth

Scope and capacity to be Networks critical size and a market leader profitability Ability to redefine the business formulae or format Generalisation of renewed format Page 11

Repositioning

WISHING YOU ALL SUCCESS & HAPPINESS IN LIFE &CAREER. ALL THE BEST

PGDM 2
Page 12