RMG200:Chapter 7: International Retailing Strategy

Adaptability

A company's recognition of cultural differences and adaptation of its core strategy to the needs of local markets.

Bootleg

The sale of imitation goods where there is little or no attempt to hide the fact that the product is counterfeit.

Counterfeit Merchandise

Goods that are made and sold without permission of the owner of a trademark, a copyright, or a patented invention that is legally protected in the country where it is marketed.

Direct Investment

The investment and ownership by a retail firm or a division or subsidiary that builds and operates stores in a foreign country.

Financial Resources

Resources that enable companies to make strategic decisions, such as expansion into international markets, requiring significant and ongoing financial commitment, often at the expense of short-term profit.

Global Culture

A company's embracing a multicultural perspective and developing an infrastructure that makes maximal use of local management.

Global Strategy

Replicating a retailer's standard retail format and centralized management throughout the world in each new market.

Globally Sustainable Competitive Advantage

One of the characteristics of retailers that have successfully exploited international growth opportunities.

Joint Venture

An entity formed when the entering retailer pools its resources with a local retailer to form a new company in which ownership, control, and profits are shared.

Knockoff

A copy of the latest styles displayed at designer fashion shows and sold in exclusive specialty stores. These copies are sold at lower prices through retailers targeting a broader market.

Multinational Strategy

A strategy that involves changing a retailer's products and image to reflect the international marketplace, using a decentralized format, learning about the country's culture, and changing the retail concept to adapt to cultural differences and cater to local market demands.

Strategic Alliance

Collaborative relationship between independent firms. For example, a foreign retailer might enter an international market through direct investment but develop an alliance with a local firm to perform logistical and warehousing activities.

Tariffs

A tax placed by a government upon imports; also called duty.

Traffic Flow

The balance between a substantial number of cars and not so many that congestion impedes access to the store.