International expansion of US retailers

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractRetailers in small countries such as The Netherlands learn that growth means internationalization. US retailers do business in the largest and most affluent mass markets in the world. However, they have reached a saturation point for some popular retail formats. US retailers are looking outside national borders for expansion opportunities. The Strategic International Retail Expansion (SIRE) model combines ideas presented in four separate theories to predict future expansion of these retailers.

The Emerging Retail Market in Myanmar - An Institutional Perspective of Foreign Retailers’ Market Entry Decisions

“…The key issues raised by companies concerned with regard to international expansion include not only the point of entry (market entry into a particular country), but the entry mode (how should the market be entered) and the date of entry (when should the market be entered). While Zentes et al (2011) distinguish between four basic types of international retailing (1) domestic market orientation, (2) global orientation, (3) multinational orientation, and (4) globalization, Sternquist (1997), in his study of the expansion of US retailers, chooses two types of internationalization strategies. Firstly, the global expansion model, under which no significant changes are made.…”

“…Traditionally, the different forces that move a company to expand are classified as push or pull factors. These factors include, among others, cultural proximity, market size and geographic distance, but also the saturation of the home market (Sternquist 1997). Salmon and Tordjman's (1989) classification includes a third retail strategy.…”

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“…According to the Strategic International Retail Expansion (SIRE) Model which is associated with stage theory, retailers tend to internationalize in two fundamental ways: Multinational or Global (Sternquist, 1997). A multinational retailer adapts its internationalization model to the culture to which it expands, and is willing to share and change its business format on the international stage, while global retailers use a standard retail format, and internationalize utilizing firm-specific resource advantages.…”

“…Asset-based advantages refer to unique products or a company's reputation, such as private label clothing and uniquely recognizable products. Transaction-based advantages occur due to the way things are done within the retailer, including volume buying, economies of scale, and distribution advantages (Sternquist, 1997;Runyan, 2003).…”

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“…Some authors (eg Sternquist, 1997) discuss standardisation in retail internationalisation in general terms, particularly in relation to the categorisation of different internationalisation approaches. IKEA has often featured as an example of a "global" retailer in classifications of retail internationalisation.…”