International Business Management Individual Assignment 2
Why developed countries’ firms fail in emerging economies
Abstract
This article is based on giving advice to John Lewis on expanding to an emerging foreign market, China. It evaluates the dynamic challenges that western developed companies faced when expanding to emerging markets. By analyzing two case studies of failure to enter emerging markets, which are the cases of Wal-Mart entering into Brazil and Best Buy entering China, a few recommendations are made to John Lewis to consider and be aware of when expanding. This research focuses on a number of different categories to look into details about how Walmart and Best Buy enter to developing countries, mainly on the entry modes, cultures and management. First, it discusses why companies failed in the beginning, the problems and difficulties they faced. Then, we evaluate how it turned it back to a success and using these as evidence to support the recommendations given to John Lewis.
Introduction
In recent years, emerging markets are seen as grounds of opportunities and potential growth. However, is it as easy as it seems for a well-developed company to expand to a foreign undeveloped country? Here, as a consultant of John Lewis, I will be giving advice to John Lewis on expanding to China.
John Lewis was founded in 1864, first store started in London Oxford Street. It is owned by the John Lewis Partnership, which also has a food chain store, Waitrose. John Lewis is now UK’s largest department store retailer, with 39 John Lewis shops. With numbers of awards and achievements, John Lewis is a well-known upmarket department store throughout Great Britain.
Why should John Lewis expand to China? Quite a few key points here, to better serve key customers that have relocated abroad; to seek opportunities for growth through market diversification; to gain new ideas about products, services and business methods; to confront international competitors more effectively or to thwart. Moreover, retail market is becoming
Abstract
This article is based on giving advice to John Lewis on expanding to an emerging foreign market, China. It evaluates the dynamic challenges that western developed companies faced when expanding to emerging markets. By analyzing two case studies of failure to enter emerging markets, which are the cases of Wal-Mart entering into Brazil and Best Buy entering China, a few recommendations are made to John Lewis to consider and be aware of when expanding. This research focuses on a number of different categories to look into details about how Walmart and Best Buy enter to developing countries, mainly on the entry modes, cultures and management. First, it discusses why companies failed in the beginning, the problems and difficulties they faced. Then, we evaluate how it turned it back to a success and using these as evidence to support the recommendations given to John Lewis.
Introduction
In recent years, emerging markets are seen as grounds of opportunities and potential growth. However, is it as easy as it seems for a well-developed company to expand to a foreign undeveloped country? Here, as a consultant of John Lewis, I will be giving advice to John Lewis on expanding to China.
John Lewis was founded in 1864, first store started in London Oxford Street. It is owned by the John Lewis Partnership, which also has a food chain store, Waitrose. John Lewis is now UK’s largest department store retailer, with 39 John Lewis shops. With numbers of awards and achievements, John Lewis is a well-known upmarket department store throughout Great Britain.
Why should John Lewis expand to China? Quite a few key points here, to better serve key customers that have relocated abroad; to seek opportunities for growth through market diversification; to gain new ideas about products, services and business methods; to confront international competitors more effectively or to thwart. Moreover, retail market is becoming
References: John Lewis – Research Methodology. 2013. John Lewis - Research Methodology. [ONLINE] Available at: http://research-methodology.net/john-lewis/ Retail Shopping Trends in China Chinese shopping habits changing |Economy |chinadaily.com.cn. 2013. Chinese shopping habits changing |Economy |chinadaily.com.cn. [ONLINE] Available at: http://www.chinadaily.com.cn/china/2012-10/29/content_15852428.htm. Walmart Corporate - Brazil. 2013. Walmart Corporate - Brazil. [ONLINE] Available at: http://corporate.walmart.com/our-story/locations/brazil M Kotabe, L Pranic and R Smith (2003) Wal-Mart Operations in Brazil (2) An Emerging Giant M Katobe, K Helsen (2000) Global Market Managing 2000 Update 2000 D Ovcina (2010)