JBRMR
Online ISSN 2056-6271 ICO Registration Number: ZA522255
Accepting submissions
Payments Sign In Register
Browse Current Issue Authors Submission Guide Submit Article

Reading View

Web Reading View

Retail internationalization: Lessons from "Big Three" global retailer's failure cases

Jay Sang Ryu • Jeff J. Simpson

Volume 06 Issue 1 Published 28 Jan 2013
Formats Standard view · PDF
Retail internationalization global retailing internationalization failure global mindset
Abstract

Research Summary

Due to saturated domestic markets many retailers seek potential growth and profits in the global market. After reviewing internationalization failures of big three global retailers, Wal-Mart, Carrefour, and Tesco, three important factors emerged which other retailers should consider as they plan strategies for internationalization and expansion. They are (1) adapting to host culture and market; (2) attaining competitive advantages in the new market; and (3) achieving global mindset and strategy. Findings of this paper can help retailers implement their internationalization strategies for the success in the global market.

References

Reference List

  1. Aoyama, Y. (2007), ‘Oligopoly and the structural paradox of retail TNCs: An assessment of Carrefour and Wal-Mart in Japan,’ Journal of Economic Geography,  Vol. 7, pp. 471-490.
  2. Baek, J. (2004),  ‘How does the global retailer localize its format?  The case of Toys “R” Us and Carrefour in Japan,’  Journal of Global Marketing, Vol. 18,  pp. 151-166.
  3. Barkema, H. and Vermeulen, F. (1998), ‘International expansion through start-up or acquisition,’ Academy of Management Journal, Vol. 41, pp. 7-26.
  4. Bartlett, C. and Ghoshal, S. (2000), ‘Going Global,’ Harvard Business Review, Vol. 78, pp. 132-142.
  5. Begley, T.M. and Boyd, D.P. (2003), ‘The need for a corporate global mind-set,’  MIT Sloan Management Review,  Vol. 44, pp. 24-32.
  6. Burt, S., Dawson, J. and Sparks, L. (2004), ‘The international divestment activities of European grocery retailers,’ European Management Journal, Vol. 22,  pp. 483-492.
  7. Cairns, P., Doherty, A.M., and Alexander, N. and Quinn, B. (2008), ‘Understanding the international retail divestment process,‘ Journal of Strategic Marketing,  Vol. 16, pp. 111-128.
  8. Carrefour makes plans to bid adieu to U.S. Market. (1993, September 20), Discount Store News.
  9. Christopherson, S. (2007), ‘Barriers to ‘US style’ lean retailing: The case of Wal-Mart’s failure in Germany,’ Journal of Economic Geography, Vol. 7, pp. 451-469.
  10. Davison, J. and Burt, M. (2006), ‘Wal-Mart’s Germany exit reflects its market entry strategy,’  Gartner Online.  Retrieved November 2, 2008, from http://gartner.com/DisplayDocument?doc_cd=142370
  11. Deloitte (2009). Feeling the squeeze: Global powers of retailing 2009, Retrieved November 30, 2010, from http://www.deloitte.com/assets/Dcom-Kenya/Local%20Assets/Documents/2009GlobalPowersofRetail_FINAL2(1).pdf
  12. Dupuis, M. and Prime, N. (1996), ‘Business distance and global retailing: a model for analysis of key success/failure factors,’ International Journal of Retail & Distribution Management, Vol. 24, pp. 30-38.
  13. Fernie, J. and Arnold, S.J. (2002), ‘Wal-Mart in Europe: prospects for Germany, the UK     and France,’ International Journal of Retail & Distribution Management, Vol. 30,     pp. 92-102.
  14. Gerhard, U. and Hahn, B. (2005), ‘Wal-Mart and Aldi: Two retailer giants in Germany,’ GeoJournal, Vol. 62, pp. 15-26.
  15. Gupta, A.K. and Govindarajan, V. (2002), ‘Cultivating a global mindset,’ Academy of Management Executive, Vol. 16, pp. 116-126.
  16. Halepete, J., Seshadri Iyer, K.V. and Park, S.C. (2008), ‘Wal-Mart in India: a success or failure?’ International Journal of Retail & Distribution Management,  Vol. 36,  pp. 701-713.
  17. Heading for the exit. (2006, August 5), Economist, Vol. 380, p.54.
  18. Palmer, M. (2004), ‘International retail restructuring and divestment: The experience of Tesco,’ Journal of Marketing Management, Vol. 20, pp. 1075-1105.
  19. Sternquist, B. (2007), International Retailing, Second Edition, Fairchild, New York, NY. 
  20. Tesco, PLC. (2008), Ireland:  Support Local Suppliers, Retrieved December 1, 2008, from http://www.tescoplc.com/plc/about_us/map/
  21. Wal-Mart sells Korean business. (2006, May 22), www.just-foods.com. Retrieved November 8, 2008 from http://global.factiva.com/ga/default.aspx
  22. Welch, D. and Welch, L. (1996), ‘The internationailsation process and networks,’ Journal of International Marketing, Vol. 14, pp. 103-124.
  23. Workman, D. (2006), ‘Wal-Mart finally gets it,’  Retrieved November 8, 2008, from http://internationaltrade.suite101.com/article.cfm/walmart_learns_a_lesson
  24. Zimmerman, A., Nelson, E., Ball, D. and Hudson, K. (2006, July 29), ‘With profits elusive, Wal-Mart to Exit Germany,’ Wall Street Journal, pp. A1, A6.
  25.