Expansion in Retail Market Through Retail Auditing and Marketing

 Expansion in Retail Market Through Retail Auditing and Marketing


Abstract 

When a retail company wants to expand its store network in a foreign market, it has to make decisions about how to do it. Most studies of retail internationalization treat the "entry mode" choice as an end in itself, rather than as the beginning of a firm's international expansion. Determinants of retail foreign operation mode selection and the applicability of generic internationalization theories are also hotly debated in the academic literature. For this reason, the research aims to investigate the paths retailers take to enter international markets and (2) develop and test a model of expansion mode precursors in the light of generic business internationalization theories,

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Introduction

Customers expect retailers to operate and expand their store networks internationally (Deloitte, 2012; 2014a). Due to the time, resources, and expertise that go into internationalization, retailers look for ways to minimize risk and maximize potential for success (Deloitte, 2009). There has been a long tradition of research into the foreign operation mode (FOM) decision in international business literature (e.g. Wind and Perlmutter, 1977; Welch et al., 2007). Even though it is widely acknowledged as a strategic decision that has far-reaching implications for performance, international retailing (Swoboda et al., 2009) lacks research on the topic (Gielens and Decamp, 2001; Evans et al., 2008).

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Conclusion

Journal of Retailing and Consumer Services, 2014, 976-991 27 From a multi-theoretical perspective, expansion mode can be explained. When it comes to the peculiarities of the retail sector's global expansion (Dawson, 1994), so-called new theories of the internationalization process do a better job at addressing them. Meanwhile, the Uppsala internationalization process model provides insights into the temporal dynamics of internationalization (Johanson and Vahlne, 2009; Jonsson and Foss, 2011). In light of our findings, it is reasonable to assume that these theories are mutually reinforcing Additionally, they support earlier research that suggests the combination of several different internationalization theories provides a better explanation of FOM choice than any single theory alone (Davies and Fergusson, 1995; 

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