The focus of the present study is to analyze which specific strategic preferences retailers pursue in the scope of their internationalization process. Furthermore, it is examined which strategies are most suitable to achieve foreign success. This occurs in regard of the food-/ near-food and the non-food retail branch. In the concrete context this research considers the basic strategic orientation of internationally active retail firms. In addition, the relation to the successful implementation of the market entry, as well as the market operation with regard to the marketing concept is investigated.
Table of Contents
1. Introduction
1.1 Statement of the Problem and Ambition
1.2 Methodology and Research Concept
2. Terminological Fundamentals
2.1 International Business Strategy
2.2 International Retailer
2.3 Non-Food Retailer
2.4 Food-/Near-Food Retailer
3. International Business and Marketing Strategy
3.1 International Management Orientation
3.2 Integration-Responsiveness Framework
3.2.1 International Strategy
3.2.2 Multinational Strategy
3.2.3 Transnational Strategy
3.2.4 Global Strategy
3.3 Market Entry Modes
3.3.1 Export
3.3.2 Franchising
3.3.3 Joint Venture
3.3.4 Wholly-Owned Subsidiary
3.4 Marketing Concept
3.5 Performance Measurement
4. International Retail Industry
4.1 Characteristics of Retail Internationalization
4.2 International Business Approach
4.2.1 Influencing Factors on Strategic Orientation
4.2.2 Branch Specific Strategy Preferences
4.2.3 Strategic Orientation and Performance Potential
4.3 Market Entry Mode Investigation
4.3.1 Predominant Entry Modes
4.3.2 Market Entry Mode and Firm Performance
4.4 Format Transfer and Success Implications
5. Conclusion
5.1 Key Research Findings
5.2 Implications and Recommendations
5.3 Research Limitations
5.4 Directions for Future Research
Objectives and Core Topics
The primary objective of this study is to analyze the strategic preferences of retailers during their internationalization process, specifically examining which strategies lead to foreign retail success in the food/near-food and non-food sectors. The core research question explores the causal relationships between individual strategic decisions and foreign market performance, utilizing the Integration-Responsiveness framework as the central analytical lens.
- Strategic orientation and international management approaches
- Integration-Responsiveness framework in the retail context
- Market entry mode selection and performance evaluation
- Comparative analysis of food/near-food versus non-food retailers
- Format transfer and marketing mix standardization
Excerpt from the Book
3.1 International Management Orientation
The appproach of a company to establish foreign activities strongly depends on its management orientation. The EPRG framework, developed by Perlmutter, gives an indication on four different management orientations, in regard of a firm's international alignment.
Described as an ethnocentric orientation, is the approach of a company to focus on its home market. The needs of the domestic market are priority and activities in foreign markets are seen as subordinate. The headquarter of an ethnocentric company assumes that its way of doing business can be applied to all the international affiliates. For the most part, these companies only see the similarities in markets and therefore sometimes ignore business opportunities outside the home market.
The polycentric concept is strongly diverse of the ethnocentric orientation. In polycentricism, firms are host market-oriented. The management believes that each market is unique and needs a different and individual business approach. As a consequence, control is highly decentralized and the foreign subsidiaries are independent of the headquarter. In conclusion, a polycentric company can be described as a decentral federation. Business activites in the foreign markets are led by the respective local management, with local decision competence.
Summary of Chapters
1. Introduction: Outlines the scope of retail internationalization, the problem statement, and the research methodology used to evaluate strategic choices.
2. Terminological Fundamentals: Defines key terms including international business strategies, retail firms, and sub-sectors like food/near-food and non-food retailers.
3. International Business and Marketing Strategy: Explains core strategic frameworks, including management orientations, entry modes, and marketing mix adaptations.
4. International Retail Industry: Investigates industry-specific challenges, evaluates branch-specific strategies, and explores the correlation between market entry modes and retail performance.
5. Conclusion: Synthesizes the key research findings, provides managerial recommendations, acknowledges limitations, and suggests directions for future research.
Keywords
Internationalization, Retail, Strategic Orientation, Market Entry Mode, Integration-Responsiveness, Multinational, Global Strategy, Transnational, Food Retail, Non-Food Retail, Marketing Mix, Firm Performance, Foreign Operations, Competitive Advantage, Standardization.
Frequently Asked Questions
What is the primary focus of this study?
This study focuses on analyzing the strategic preferences of retailers during their internationalization process and how these decisions correlate with foreign market performance.
What is the core research question?
The research investigates the causal relations between a retailer's internal strategic decisions (such as market entry and marketing mix) and their foreign retail success.
Which theoretical framework is applied?
The study primarily utilizes the Integration-Responsiveness (IR) framework to analyze the tension between global standardization and local responsiveness.
How is the retail industry segmented in this research?
The research distinguishes between food/near-food retailers and non-food retailers to identify branch-specific strategic differences.
What methodology is used to conduct this research?
The study uses a secondary data analysis based on management literature, journals, and industry reports (such as the Global Powers of Retailing Report), supplemented by a comparative research design.
What are the main components analyzed in the main body?
The main body examines management orientations, the IR framework, market entry modes (export, franchising, joint ventures, wholly-owned subsidiaries), and the design of the retail marketing mix.
What is the main finding regarding Aldi's strategy?
The study notes that while Aldi is often viewed as a global player, it also exhibits characteristics of a transnational retailer due to regional decision-making and consideration of local consumer preferences.
How does the entry mode influence a retailer's performance?
The study concludes there is no "rule of thumb" for the best entry mode; success depends on a retailer's ability to apply diverse entry modes based on external conditions and their specific strategic orientation.
Why are Zara's strategies mentioned as significant?
Zara is highlighted for its successful implementation of a global standard, utilizing wholly-owned subsidiaries to maintain tight control over its fashion-forward, fast-response retail model.
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- Katja Steinhauser (Autor), 2017, Analysis of International Business Strategies in the Retail Industry, Múnich, GRIN Verlag, https://www.grin.com/document/383231
