What Are the Challenges Associated with Globalizing a Retail Operation

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The Answer is It remains difficult to expand a retail operation across national boundaries,because of (1)the need for quality real estate locations on which to build stores; (2)the demand for physical logistics operations comparable to those in the home country to source and distribute product; (3)the need to develop supplier relationships in new markets,or to internationalize home market suppliers; (4)differences in zoning,pricing,taxation,hours of operation,labor,and hiring,and operational choices that must reflect other regulations in each market; and (5)the need to offer locally attractive products,packaged and positioned in a culturally sensitive manner.Despite these difficulties,retailers have little choice but to globalize (or at least internationalize)their operations,driven by slowing growth in their home markets and the overwhelming attractiveness of developing overseas markets.

What Are the Challenges Associated with Globalizing a Retail Operation

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