Presentation on retailers who have gone global, the different strategies they have pursued and the drivers and motivations for the major retailer chains for going global

Kledal, Paul Rye

English

Organic Eprints

Slide 1RETAILER INTERNATIONALISATIONCONSEQUENCES ON BUSINESS STRATEGY ANDUP-STREAM CHAIN LOGISTICSIN THE ORGANIC SEGMENTBY Dr. Paul Rye KledalPlace, date, unit, occasion etc.Slide 2Presentation agenda- Globalorg project- Retail globalization: what are talking about- Motives for retail globalization- Suggestion of theoretical framework- Examining up-stream consequences- Research focus areas?Place, date, unit, occasion etc.Slide 3Globalorg projectOverall objective:To determine to what extent and under which conditions organic farming may • reduce local and global negative environmental impacts • provide sustainable improvements in poor farmers’ livelihoods within the framework of the global food supply chain and the increased urbanisation.Place, date, unit, occasion etc.Slide 4EUROPE (France, Denmark)www.Globalorg.dk2006-2010  global research on development of organic food & farming environmentally, socially and economically?Darcof IIILATIN-AMERICA(Brazil)ASIA (China)AFRICA(Egypt)Place, date, unit, occasion etc.Slide 5WP 1.FOI, Urban demands fororganic food, food chainorganisation andmarkets(REGIONALSCALE)WP2.KVL, Agro-ecologyof Organic farmingsystems(FARM SCALE)WP 3.DIAS, Product-oriented environ-mental assess-ment(REGIONALAND GLOBALSCALE)WP 4.DIIS, Institutionsand Livelihood(LOCAL ANDREGIONALSCALE)WP 5. Synthesis: Organic farming in a global perspective(regional and global scale), DIAS, allWP 6. Project management and communication. Commondatabase on products and chains, DIASWP 1.FOI, Urban demands fororganic food, food chainorganisation andmarkets(REGIONALSCALE)WP2.KVL, Agro-ecologyof Organic farmingsystems(FARM SCALE)WP 3.DIAS, Product-oriented environ-mental assess-ment(REGIONALAND GLOBALSCALE)WP 4.DIIS, Institutionsand Livelihood(LOCAL ANDREGIONALSCALE)WP 5. Synthesis: Organic farming in a global perspective(regional and global scale), DIAS, allWP 6. Project management and communication. Commondatabase on products and chains, DIASPlace, date, unit, occasion etc.Slide 620 RETAILERS regard themselves as international competitors6 retailers has a position that looks reasonable secureFEW ’GRAND’ MARKETS OF POTENTIAL EXPANSIONBRIC COUNTRIESL.A.: ARGENTINA, COLOMBIA, MEXICOAFRICA: TUNESIA, EGYPT, ALGERIAASIA: INDOSNESIA, THAILAND, MALYASIA, SINGAPOREMIDDLE EAST: SAUDI ARABIA, KUWAIT, JORDAN, UAEEU (CEEC): POLEN, (TURKEY)Retail Globalization: What are we really talking about?Place, date, unit, occasion etc.Slide 7THE BIG THREE INTERNATIONALLYCOUNTRY SALES INT T.O. US MIO. % OF SALES WALL-MART US 241,973 16CARREFOUR FR 38,794 51TESCO UK 26,350 15Place, date, unit, occasion etc.Slide 8THE CONTENDERS INTERNATIONALLYCASINO (FR)AUCHAN (FR)METRO (BD)ALDI (BD)ITO-YOKADO (JP)TENGELMAN (BD)AEON (JP)Place, date, unit, occasion etc.Slide 9REGIONAL EXPANSION-L I D L  ( E U )- NETTO (EU)- SPINNEYS (MIDDLE EAST)- Majid Al Futtaim Group (franchising carrefour egypt)- Mansour Manufacturing and Distribution (Metro egypt)Place, date, unit, occasion etc.Slide 10Motives for international retailer developmentPUSH PULLMATURE MARKETS GROWTH IN ECONOMY AND POPULATIONINTENSIVE COMPETITION INCREASING CONSUMER SPENDINGSATURATION IN FLOOR SPACE DESIRE TO EXPORT A FORMULA THAT WORKS AT HOMESLOW ECONOMIC GROWTH REMOWAL OF BARRIERS TO ENTRYLOW POPULATION GROWTH/ STRONG PRODUCT BRANDCHANGES IN DEMOGRAPHICSREGULATION ON FORMATS FRAGMENTED COMPETITIONREGULATION ON TAKEOVER CORPORATE PHILOSOPHY TO BECOME INTERNATIONAL BUSINESSHIGH OPERATING COSTS ESTABLISH BASE FOR FURTHER INTERNATIONAL EXPANSIONPlace, date, unit, occasion etc.Slide 11CONCEPTUAL FRAMEWORK: THE ’OLI’ MODELOWNERSHIP LOCATION INTERNATIONALIZATIONADVANTAGES ADVANTAGES ADVANTAGES(THE WHY) (THE WHERE) (THE HOW)Ability to exploit a:  econ growth corporate philosophybrand, product, econ of scale (back office) Transfer of learningknow-how removal of entrybarriers First moverA well working formula  consumer spending upurbanizationmacro econ stabilityPlace, date, unit, occasion etc.Slide 12UP-STREAM CONSEQUENCES:FARM LEVEL (direct link to retailers: offering packaging, fresh produce, farm brand)PROCESSORS: -no longer size or breadth of activity that determines effeciency-combination of its core activities and geographical spread that matters - requires a centralized, vertical coordination of their international activities- pushes firms to reshape their internal structures and become matrix-form organizations- changing network relations with their subsidariesPlace, date, unit, occasion etc.Slide 13Research focus areas?Logistic technologies (transport, communication) and its cost relation to reduce time on delivery and supply chain informationLogistic technologies and its cost relation to the asset specificity in food concerning time of durabilitydetermines to a great extend retailer business strategies and network relationsPlace, date, unit, occasion etc.Slide 14Thank you for your attention

Retailer globalization

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