International expansion and strategies of discount grocery retailers: the winning models

Author: Colla E.

Source: International Journal of Retail & Distribution Management, Volume 31, Number 1, 2003 , pp. 55-66(12)

Publisher: Emerald Group Publishing Limited

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Abstract:

Illustrates the reasons that have determined the success or failure of the discount retailers on the international scene, through the identification and analysis of the strategic groups, competitive advantages, entry barriers to the sector and barriers to mobility between the groups. Three strategic groups of discount food retailers that have adopted different internationalisation strategies have been defined and a series of key success factors of the different strategic groups has been identified. The winners in the race to international expansion are in particular the leaders of the first group of German hard discount retailers. But important niches in several foreign markets can also enable growth of retailers in the second group, the German soft discount retailers specialised abroad, and of the third group, the French soft discount retailers diversified abroad.

Keywords: Internationalization; Strategy; Grocery; Retailing; Competitive Advantage; Diversification

Document Type: Research article

DOI: http://dx.doi.org/10.1108/09590550310457845

Publication date: 2003-02-12