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2. Globalization of Retailing

2. Globalization of Retailing. Agenda. Globalization of retail industry BRIC countries. Why do retailers (businesses) expand internationally?. Motivation for International Expansion. Increase Sales International markets more attractive than domestic markets

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2. Globalization of Retailing

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  1. 2. Globalization of Retailing

  2. Agenda • Globalization of retail industry • BRIC countries

  3. Why do retailers (businesses) expand internationally?

  4. Motivation for International Expansion Increase Sales International markets more attractive than domestic markets Saturated home market and low growth potential Intensive competition at home Expansion at home blocked by politics/legislation Economic downturn at home Reduce Costs Scale economies Economies of scope Diversify Risk – Reduce uncertainty

  5. Why Have Retailers Been Slower to Expand Internationally than manufacurers? $40B vs 400B 100’s vs 15 countries

  6. Top 20 Retailers in the World Information source: GMID, Euromonitor

  7. Why are European retailers more global than U.S. retailers?

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