Strategic International Business Essay Example | Topics and Well Written Essays - 2500 words

Strategic International Business - Essay ExampleIn order to gain a competitive edge in a new market, the concept of strategies pick out should entail steps that are different from those of rivals (Sekhar 2010, p.6). Currently the sell giant operates in twenty-seven countries crossways all the continents, but surprisingly missing in the worlds largest economy, the United States, after it pulled out in 1994. Various question findings reveal that sell business market penetration in authentic nations such as Singapore and Netherlands range from 85 percent to 51 percent respectively. Additionally research work conducted by Ebeltoft Group and MacMillan reveal the business of consumer retail is fastest in developing nations and more(prenominal) so in south America, and Africa (Loeb, 2013). The research also indicated that the net profit in these regions was also the highest amongst retail firms operating there, compared to other regions. In these economies market penetration is not as saturated as the incident in more developed economies but the French retail giant is heavily represented in Latin America. fords Current Markets The retail giant operates in four Latin American countries the Dominican Republic, Colombia, Brazil and Argentina collectively having 284 hypermarket stores, 151 supermarkets, 695 hard discounters, 48 convenience stores and 124 cash and carry stores. The retail giant, on the other hand, is weakly represented in Africa with a total of only sixteen hypermarkets, 37 supermarkets and one cash and carry store spread out in North Africa. Given these scenarios, it would be imperative to for the firm to consider an expanding upon plan in sub Saharan Africa and particularly southern Africa. However, while considering entering into the southwestward African market, Carrefour must learn a lot from its previous market entry strategies that failed in, for instance, Japan where it was unsuccessful in understanding and meeting the needs of Japane se consumers. Carrefour failed to conduct thorough pre-entry market research, and thus while carrying out market intelligence, it should consider applying the SWOT analytic thinking considering each strategys strengths, potential weaknesses and how best it can utilize potential opportunities in the entropy African market. These include first the Strengths it is competitive in prices compared to the rivals, has relatively large stores with a range of non-food items, expansion growth has been impressive and it places emphasis on locally sourced products. Secondly, weaknesses in their home realm they are beat by local rivals, Casino, their own brands are generally underdeveloped and finally it did not study markets in the United States and Japan, which resulted in failure. There is the opportunity in expanding to modest infiltrated market such as southeast Africa despite the threat of rivalry from more prevailing Wal-Mart after their entry into the South African market. South Afri ca It is a middle-income economy and home to bulging number of middle class citizens, and with the government courting strange investments into the economy such moves seemed to have attracted Carrefours global retail rivals into the country such as Wal-Mart who are planning to enter the market. The country boasts of well-developed infrastructures and these developments provide a boosts for those firms planning to set up footprints into the country. The country is waking up to the