Transnational Retailer Analysis

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The term transnational retailer is generally understood to mean all the activities involved in selling products and services to final international consumers for their personal consumption (Dicken, 2011). At the present time, the massive global economic growth and the change of the competitive market environment drive the retail foreign direct investment become one of the most important parts of the international economic activity in the world. This essay attempts to discuss the GDP and economic dynamic result financial crisis, also the government political such as capitalism, regulation and gendered economy phenomenal in society. Then explain how those factors determine the expansion and performance of the multinational retailers being success …show more content…
Different supplier and customer demand in numerous countries affect performance and expansion of transnational retailer straight away. Logically, supplier and customer demand change depend on dominate country’s GDP. Research by Durand and Wrigley (2009) suggests that in the case of world largest retailer Wal-Mart, there has a relationship between Wal-Mart retailing and GDP per capital. The result indicated that Wal-Mart supplier has its motion to expand its retailing and enjoyed a greater international success in those counties which have lower GDP (Durand and Wrigley, 2009). The reason of this phenomenal could be seen as Wal-Mart abide by its principle of low-price sales strategy. Low GDP country customer are more prefer to pay less on consumptions and services (Durand and Wrigley, 2009). Moreover, the economic dynamic generating the fluctuated of GDP. As (Mohanakumar and Singh, 2011) argue that economic development support a suitable opportunity and supportive environment for investigation of the national dimensions of retail globalisation. Transnational retailer always address their business in the host countries which have got higher economy growth. By consider, if retailer enters a country with a slow or even stagnant economic growth that the retailer has less likelihood to expand and success. This is because that low economic bring about limited growth in the market, no …show more content…
This change might determine the expansion and performance of transnational retailers. In general, Boyer (2013) indicate that the t Commission published a European Retail Action Plan (ERAP) to address barriers to the creation of a truly integrated single market in retail. Furthermore, Liberalising EU-US trade could benefit the transnational retailers on expansion, such as open new markets for products and brands, mutual recognition of product standards, and regulatory co-operation (Boyer, 2013). In addition, according to Becker and Jäger (2012) the varieties of capitalism approach leads us to expect differences in the institutional framework. This has been deployed to control individual power and this has also given greater scope for the realisation of mutual interests and the development of production and marketing strategies (Becker and Jäger, 2012). What is more, the revolution of capitalism leads the global structural changes, also will help global retailer to trade (Huselid, 1995). For instance, among these capitalism, such as trade liberalisation and the concomitant globalisation politic linked to the case of IKEA and Wal-Mart (French, 2006). Both of the retailer expanded by improve labour standards in supply chains after being targeted in activist campaigns, the degree to which these policies actually changed employees working environment, reflecting differences in the

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