Retail Marketing

Retail Marketing

Introduction

Internationalization of retailing firms has received an increasing attention from researchers in recent years. We focus her on the market selection and competitive advantages of retail operations in international markets motives behind international retail activity and matching/networking. Most of these studies, however, focus on developed country firms and there is lack of research on retail internationalization of the emerging market firms.

EMFs and developed country firms differ from each other in terms of structure and strategies employed in international markets. EMFs are at early stages of internationalization with exporting being the dominant mode of market entry. Even though they are smaller, have much less experience, resources, international reputation, brands and access to distribution channels, they enjoy the advantages of low labor and production costs. Thus, they are found to be competing on price rather than differentiation in their international operations, and enjoy lower returns. Some research show that some EMFs proved to be quite successful in international markets. The retail sector has become more international in its operations. It is quite challenging and complex especially when manufacturing departments are concerned.

Discussion

Direct connection of the retail business through social web with end users allows them to offer them and interact with them through dynamic, personalized web spaces which, as well as informing them, allows them to interact with other users, collect and give opinions, develop individualized products, find sales points by relocation, join specialized virtual communities, etc.

In addition, most tools and applications produced are developed with a worldwide philosophy, in the sense that they represent interaction platforms which exist in a very similar form in different countries and cultures. Interaction through these spaces and use of these tools gives companies in general and retailers in particular two big advantages. First, the information generated by users in general terms and that generated by the company in particular allows more direct, precise knowledge of consumers and customers and facilitates adaptation to new cultural environments. Secondly, communication generated through these applications is much more direct and specific, also allowing the consumer to be included in the generation process and, when this occurs, adaptation of the product supplied to the, new multicultural environments in which the company works.

Internalization of firms

Emerging markets are assuming an important position in today's international strategy research. The adoption of developed nation-based theories or approaches to emerging markets and firms is the challenge in this stream of research strategies that had sprung from advanced countries do not always work as effectively as expected in emerging markets. Moreover, EMFs do not always follow the path of the multinational companies (MNCs) in international arenas.

The developed nations are characterized as mature, saturated, and highly competitive whereas emerging markets have unique characteristics such as weak and\or shallow home country advantage, weak institutional structures, political instabilities, and lack of market-based management skills.

Earlier research on internationalization of EMF has underlined the cost advantages as a firm-specific advantage that facilitated their internationalization. This perspective was in line with the mainstream theory, which holds that a firm has ...