How Western Retailers Manage Relationships in Emerging Market?

Kannika Leelapanyalert

Numerous studies can be found in relation to international retailing, but these have not been able to fully identify factors that influence the process of retail internationalisation (Brown and Burt, 1992; Dawson, 1994; Helfferich, Hinfelaar, and Kasper 1997; Pellegrini, 1994, Rogers et al 2005). This research seeks to explore this area in more detail in order to develop a conceptual model, which could provide useful insights and a valid approach to the different processes of retail internationalisation.

The objectives of the research are: 1) To develop and explore a conceptual model for retail companies entering the emerging market; 2) To describe and study the role played by these crucial factors during the internationalisation process of these firms; 3) To describe and study how different market environments can be managed during the international expansion process; 4) To identify the success factors that could facilitate the success or failure of the business entry of Western firms in emerging countries

The international retail strategy used by Marks Spencer entering Hong Kong and Thailand are being explored. Data is collected by a series of in-depth, semi-structured interviews, reports and observation. The total of 30 interviews are conducted with staff including senior managers, middle managers and frontline employees established at the head office, subsidiaries and franchisee. N*Vivo software is used to encode the data and corroborate the analysis in this qualitative research.

This study explores the concept of matching and market orientation and reveals that it is important factor in internationalisation of firms into emerging markets. The findings also indicate that market orientation is another important factor in the process. The interplay between matching and market orientation plays a crucial role in the firm’s strategy to achieve a strong market position in foreign markets.