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International Marketing

August 20, 2012

Why do you think hypermarkets are more common in some countries than others?

Hypermarkets (or supermarkets) have become a popular trend today compared to say 30 years ago in some countries. Reasons for this are the “increase in car ownership, an increase in the number of households with refrigerators and freezers, and an increase in the number of working wives” (Gillespie, 391).

However, some countries are still not as developed as others. This causes the hypermarkets to steer clear of these countries because there looks to be no future for the company in these countries. Hypermarkets also look for areas out of town that are accessible by vehicles. An undeveloped country would not be able to get to the hypermarket without an automobile if they did not have one. Also, with an undeveloped country there would not be enough customers and economic stability to become established in some countries. What competitive advantages do foreign retailers such as Wal-Mart and Carrefour enjoy when they enter Asian markets?

Competitive advantages that the foreign retailers have are first the capital. It takes a great deal of capital to enter into another market area. The next advantage is, such as Wal-Mart, they have the low prices and high volume. These retailers have thousands of brand items in their store for the low price. This is an attraction to the market because of the jobs that the entry presented to the area. What are some possible competitive advantages of local retailers? Are those advantages transferable to other Asian countries?

Local retailers have many advantages. However, the main competitive advantage that these retailers have would be that they have the knowledge of the cultural demands. These little mom and pop shops know what their customers want and how to sale to them. They know how to entice the consumer in their own country...
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