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Strategic Development in Global Food Retail

In: Business and Management

Submitted By vidhi1979
Words 3699
Pages 15
Case Study – Strategy Development in the Global Food Retail Supermarket Industry

Introduction
In order to develop a global strategy, the deep understanding of the term ‘globalization’ is very important for every company.
Globalisation:
The globalization increases the mobility of goods. Globalization is a term describing different complex ideological, political, environmental and cultural forces as one world. During World War II, the national boundaries got faded and financial markets, information services, manufacturing concerns as well as cultural products have made themselves available to the whole world. American hamburgers are available in Tokyo today and Japanese cars gets assembled and marketed in America. Virtually everybody is connected through Internet throughout the world. The world around us seems completely borderless. (Steger, 2009)
The globalization of food retail super market industry has developed extensively in the supply chain retailing. It has made a greater impact on the public consumer market. The globalization has forced the local food retailers to think beyond retailing in the domestic markets for sustainable growth and presence. The global food retailing industry is a complex collection of diversified supermarket chains, independent food stores, and direct-to-consumer services that supply much of the food consumed today.
The successful food retailers usually follow two strategic formats which are as follows: * Discount Outlets
These kind of global food retailers work in same format in all the divisions regardless of what country they are operating in. They also keep the same products for retailing. This system usually follows adopting the same distribution channels and maintaining centralized distribution centres. The prime examples of this format of global food retailers are Lidals and Aldi. * Hypermarkets
In this…...

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