Global Expansion in Retailing Essay

Global Expansion in Retailing Essay

Length: 767 words (2.2 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Global Expansion
As retailers compete against each other to secure their business presence in their company's home nation, they are also adapting to the retail industry's changing environment by globally expanding through investing in international countries in order to make their business the most profitable and recognizable around the world.
Many retailers who are satisfied with the revenue their home nation's company generates do not expand globally as investing in international countries is expensive and the chance of being internationally successful is not guaranteed by the retail industry, although there are many retailers who take the risk anyway due to certain factors. Firstly, retailers are economically driven and thus, they expand globally to create a unique presence through the incorporation of something different in their newly opened store. This factor is demonstrated through the global expansion of Lush Cosmetics in Jeddah, Saudi Arabia. This United Kingdom based store opened their first store in Star Avenues Mall, consisting of only female staff. Consequently, women can enjoy the luxuries of gaining expert beauty advice and feel comfortable when trying on products recommended by Lush's all female staff ("Exciting news for Lush", 2013). Another economically associated factor leading to global expansion is the need for a brand to make an extreme appearance once again in the market after losing its place in the industry. Dunkin Donuts is making this sort of appearance in the United Kingdom with over 50 of their new stores tailored accordingly to the taste buds of people living there, after their concept failed to appeal to customers in 1990. Their retooled menu has been newly designed for local taste ...

... middle of paper ...

...they have the ability to attract customers instantly. For example, both Starbucks and Lush Cosmetics are expanding in Manhattan and Jeddah with unique innovations that do not already exist in those areas. Teavana by Starbucks is set to be a speciality store for tea lovers, already targeting one part of the consumer market causing competitors to innovate their products so that the well known Teavana by Starbucks does not dominate their sales. In the case of Lush Cosmetics, their competitor will have to innovate their products and services twice as much to earn clients from Lush in order to gain more sales. Also, their competitor will have to constantly advertise until they gain a consumer base and develop a social presence amongst shoppers to stabilize their business presence, as Lush has already secured their reputation as a well known cosmetics retailer in Jeddah.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay about Retailing in the U.K

- Retailing in the U.K The retail industry in the UK is a highly competitive arena, in which price rollbacks, promotions and heavy discounts are the tools in the battle for share in an increasingly consolidated market. Over the review period, the increased concentration of the retail market in the hands of a smaller number of operators allowed superior economies of scale, which in turn created lower and more affordable prices. Far wider consumer choice was also made possible as retail outlet sizes grew....   [tags: Papers]

Better Essays
810 words (2.3 pages)

Essay about Global Human Resource Management

- Case Analysis: Global HR Management   What are the HR Strategies that management must undertake and support to create a successful global presence to insure the success of an organization in meeting its goals and mission. Wal-Mart Establishment The first Wal-Mart store opened in July of 1962 in Rogers, Arkansas by Sam Walton who believed that the future of retailing was in discounting and to avoid competing with established giants like Sears and Woolworth, Wal-Mart’s stated out of the large cities in the beginning and this strategy help avoid competition, while in rural areas Wal-Mart began growing their customer base by offering ways to save money and shorter travel distance, Sam Walton fe...   [tags: Wal-Mart, global presence]

Free Essays
943 words (2.7 pages)

Target's International Expansion to Panama Essay

- ... This measure can dilute the business risk arising from limitation to geographic location as well as fuel its market position. Other contributing factor for an expansion overseas arises from the suffocating rules across US credit card industry, increased overlap in product assortment and rising labor wages and healthcare cost (Target Corporation SWOT analysis, 2013). Limiting to a single geographic proximity can have consequential results. Deterioration in macroeconomic health could influence the volume of new credit accounts, the amount of program balances and the ability of credit card holders to pay their balances....   [tags: company, stores, online, website]

Better Essays
2745 words (7.8 pages)

Global Marketing: An Analysis of IKEA and Ashley Furniture Industries’ Marketing Activities

- For most ambitious companies in today's complex business environment, gaining competitive advantage and achieving expansion in capacity often requires internationalising operations and entering new markets with the goal of building a broader and more diversified customer base. However, internationalisation typically presents the problem of how to establish the company’s business or brand in a foreign market, considering the cultural and contextual differences in global markets (De Mooij, 1998). Due to the spread of globalisation and the convergence of markets and economies, it has been increasingly acknowledged that a broad range of products and services can potentially have a global appeal...   [tags: Global Marketing and Advertising]

Better Essays
3004 words (8.6 pages)

Essay on Wal Mart 's Expansion Strategy

- Walton grew up in a rural area in the United States. He tried lots of things such as running variety stores before founding Walmart. Walton believed that discount stores could succeed in smaller markets based on the success of many Ben Franklin stores which were located in smaller markets. From the beginning, Walmart focused on small-towns, in rural or suburban areas. In 1962, Walton started his first Walmart store in the small town of Rogers, Arkansas. Then, Walmart grew up by following Walton’s expansion strategy in which new stores should be adjacent to existing Walmart markets and distribution lines....   [tags: Wal-Mart, Hypermarket, Variety store]

Better Essays
929 words (2.7 pages)

Managing Management Issues Of Retail Activity Essay

- 1 - Introduction In recent years there has been major growth in the wider business world surrounding the overall influence that the retailing industry holds and because of which, retailing and the issues that surround it have become a vital influence in today’s global economy. (Fisher & Raman, 2001) It has been said that retailers may no longer compete purely retail activity alone and must incorporate various factors relating to overall efficiency of the whole supply chain and in turn overcoming ever expanding management issues of which arise throughout business activities....   [tags: Retailing, Supermarket, Business ethics]

Better Essays
1168 words (3.3 pages)

Wal-Mart: The Global Retailer Essay

- Wal-Mart: The Global Retailer Wal-Mart is the world's largest retailer. In fact, it's the world's largest company, with sales last year totaling nearly $220 billion. Of that total, $35.5 billion were from the fast-growing Wal-Mart International Division. Wal-Mart is growing at an incredible clip, both at home and abroad. In the early 1990s, its sales were a little less than $85 billion; it had 2,200 stores and no international division. Today, it has over 3,200 stores, with about 1,100 of them outside the United States....   [tags: Business Analysis Wal Mart]

Free Essays
1777 words (5.1 pages)

India 's Super Market Chains Essay

- This case deals with different approaches people took to develop super market chains in India. With the first approach occurring with Wal-Mart and Bharti, where Wal-Mart would operate the behind the scenes while Bharti would operate the front end. They decided to work on establishing a supply chain rather than rapid expansion. The next approach was taken by Reliance. Reliance started developing a retail chain that would include two formats and getting products from local farmers. Tata and Tesco went a different direction and went into the business-to-business market....   [tags: Retailing, Supermarket, Shopping mall, Wal-Mart]

Better Essays
971 words (2.8 pages)

Socio and Economic Factors in Global Business Essay

- Socio and Economic Factors in Global Business When a company decides to take their business international, there are many different sociological and economic factors that they need to take into account. There are differences in management styles, international laws and treaties that regulate international business, as well as cultural customs that come into play. Each of these are significant and needs to be taken into account in order to minimize potential problems. Many times, lack of knowledge can create serious problems....   [tags: GCSE Business Marketing Coursework]

Better Essays
1917 words (5.5 pages)

Ethical Considerations in Global Expansion Essay examples

- Introduction The aim of this paper is to discuss the challenges of values-based decision-making ethics in the current marketplace. This discussion will include the research findings on the four markets for potential expansion and an assessment of the current social and political climate of each. A recommendation will offer three best fits based on a comparison of company values, and will include detailed rational for these choices. Content and Analysis Background According to Ferrell (2004), “Organizations create ethical or unethical corporate cultures based on leadership and the commitment to values that stress the importance of stakeholder relationships....   [tags: Global Commerce]

Better Essays
1863 words (5.3 pages)