Does the Global Village have Global Shops ?

1. Does the Global Village have Global Shops ? An Introduction to the Internationalisation of Retailing By Colin Clarke-Hill

2. Evolution towards Globalisation • International trade • The rise of the international company • The multinational company • The transnational company • The global company

3. Globalisation Debate • Space and time contracting - Global Village • Everywhere is becoming like everywhere else • Consumer convergence • Search for scale and cost advantages • Worldwide sourcing for production • Global production • Falling of trade barriers

4. Why Internationalise ? Basic Drivers for Internationalisation • “Pull” factors • “Push” factors • Convergence • The “global village”

5. Factors or Drivers Expalined • Push Factors - factors that force a firm to contemplate moving from their home market • Pull Factors - those factors that attract firms into international markets • Convergence - consumers having the same tastes and similar consumption patterns • Global Village - contraction of time and space The quest for Standardization

6. Standardization Push Factors Pull Factors Standardization Global Village Consumer Convergence

7. More Formally An International Growth Model

8. Push and Pull Factors Affecting International Growth Pull Factors Motives Push Factors Motives • Saturated home • market • Limited growth • Escape from inflation • Increasing regulation • Costs • Competition in home • market increasing • Follow customer • Internationalisation • of industry • Create international • network • Competitive drivers • Market • liberalisation International Growth Method of Growth • Licensing • Agents • Franchising • Joint development • Acquisition • New development Direction of Growth

9. Internationalisation and Retailing ? • The “cheap wine” analogy - does not travel well ! • can retailing formats transfer ? • can retail brands transfer ? • can retail competencies transfer ? • is there real convergence ? • are there global shops ?

10. A Walk Down the High Street • Food shopping • Tesco CZ/SV/Fr/HUN/POL • Sainsbury US/FR/IT/BEL • Asda Fr • Safeway FR/NL • Kwik Save HK • Aldi GER • Netto DK • Lidl GER • Budgens GER

11. Carry on walking ! • Clothing shops • Next GER/US/Fr • M&S CAN/US/JAP/Europe- all over • Sears GER/NL • C&A All Europe • Benetton all Europe/world • Littlewoods Russia • Gap USA/JAP etc.

12. still walking !! • “Hard goods” • Dixons US • Comet FR • Homebase BEL

13. How do Retailers Enter Overseas Markets ? • Various Entry Strategies • Different Speeds of Entry • Different Decisions Concerning Risk and Committment

14. Modes of Entry into Foreign Markets Indirect Direct Licensing JV Direct Investment Amount of Commitment Risk, Control and Profit Potential Low High Source: Kotler P “Marketing Management” 6th Edition

15. Now the slide show

16. Finally ? • Can we really compare ? • North America ? • Developed Europe ? • The “new” Europe ? • Is this really convergence ?

17. Any Questions ?

18. University Place !