Page 231 - GLOBAL STRATEGIC MARKETING

Multinational players from emerging markets the future stars

Grocery retailers based in emerging markets are likely to continue to
record the strongest performances, especially those continuing to expand

aggressively across neighbouring markets, for example Cencosud in
Brazil and Peru, as well as Lotte, which ventured into China in late 2007.

Of the players based in developed markets, those operating in the most
dynamic channels such as convenience stores, discounters and
hypermarkets will continue to fare well.

Source: Moreau, R (2008) World’s Top Ten Fastest Growing Grocery
Retailers
(www.euromonitor.com/Articles.aspx?folder=Worlds_top_10_fastest_gro

wing_grocery_retailers&print=true [accessed 2nd July, 2010]

The example above shows the growing power of grocery retailers in
developing economies through the emergence of better retailing

structures, infrastructure and acquisitions. However, this is an extremely
costly and risky strategy and some organisations choose the option of the

Internet to bypass traditional entry strategies in favour of technology to
enter new markets such as Amazon who are a global on-line distributor.
What Amazon needs to do is make sure that its customer service is

exemplary and its physical distribution is efficient. Amazon allows
consumers to track their purchases and in are extremely efficient in what

they do. Physical distribution is just as important as choosing
intermediaries and some organisations such as Coca Cola have a global
distribution network in place which makes it easy to distribute any new

products introduced to its portfolio on a global capacity. Many companies
integrate traditional distribution with the Internet which is a prudent

strategy.