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Vol. 3 No. 1 (2017)
March 2017: Challenges for International Business in Central and Eastern Europe

Articles

Retailers’ competitiveness on global markets

https://doi.org/10.15678/PM.2017.0301.10

Published 2017-02-10

  • Grażyna Śmigielska
    • ,
  • Renata Oczkowska

Grażyna Śmigielska
Cracow University of Economics

Renata Oczkowska
Cracow University of Economics

Abstract

The aim of the chapter is to show that now retail trade is a global sector but because of its specificity new strategies are necessary if global retailers want to sustain their advantage. The  concept of globalization is discussed and then referenced to the retail sector.  The process of retail internationalization which resulted in the globalization of retail sector is analyzed.  It is assumed that the retailers were motivated by the goal of sustaining their competitive advantage. So some ideas of the main theoretical views of developing sustainable competitive advantage (SCA): Environmental View and Resource Based View, referring to the process of internationalization as well as Yip’s description of globalization process are presented. On the examples of some companies, leading the process of retail fast internationalization in XX century, like Ikea, Benetton, Carrefour, Wal-Mart, it is shown how the resources they developed and external environment contributed to their globalization process. It is found out that there were two stages of the globalization of retail sector: first, in which non food companies develop on international market and second, when the mass merchandisers offering food and other Fast Moving Consumer Goods (FMCG) were involved. The fact that after fast internationalization representatives of both groups face problems leads to the conclusion that to be successful in the contemporary global retail market new capabilities should be developed.

Keywords

globalization, sustainable competitive advantage, resource based theory, retailing

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