Gaining competitive advantage and market dominance in a retailer’s home territory isn’t easy; it’s developed over a number of years through research, insightful buying, good customer relationships and a lot of hard work from management and on the floor staff. Once that is achieved, often the natural inclination is for the retailer to look to scale through expansion internationally. While this is admirable and is achievable, it’s something that should not be taken for granted in that it is only going to work if it’s researched well in advance. Success in a home territory doesn’t necessarily mean automatic success in another country by any means and many retailers (large and small) have failed to recognize this in the past. This could result in huge losses which could be avoided if research was done prior to moving forward with an expansion move.
There are a lot of things to consider before starting a plan for international growth. Infrastructure, staff, logistics are just a few things to be thought over. The people over at Storetraffic have put together this infographic below which outlines what a retailer needs to think about before considering any sort of expansion beyond their home territory (without Amazon even being mentioned)! It looks at factors that influence retailers to consider expansion; it examines major aspects that should be investigated; it looks at some retail operations which have failed in the past and it also looks at some expert opinion on the area. Check it out below.
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