Thursday, September 23, 2010
Posted by D. Daniel Sokol
Marcel Corstjens, INSEAD - Marketing and Rajiv Lal, Harvard Business School have posted Internationalization in Grocery Retail: Much Ado About Not Very Much.
ABSTRACT: We find that internationalization in the grocery sector has steeply increased over the last 15 years, but is still surprisingly limited. Although internationalization has a number of undeniable advantages for grocery retailers, our statistical analysis shows that the degree of internationalization is not a significant driver of profits nor of growth for grocery retailers. This suggests that internationalization should be developed differently or that other, more profitable growth strategies exist for grocery retailers. We provide a typology of such strategies and identify ‘weightless brand ownership’ as a promising underexploited profitable growth opportunity for grocery retailers.