International Strategies of the Food Retail Industry

Bachelor Thesis from the year 2008 in the subject Business economics - Trade and Distribution, grade: 1, European Business School London / Regent's College, language: English, abstract: This research is concerned with the evaluation of factors that contribute towards sustainable competitive advantage in the food retail sector in China. Increasing globalisation encounters problems to market particularities from the macro and micro point of view. This research emphasises on the evaluation of political, economical, social, technological, ecological, and legal factors, the market attractiveness based on the bargaining powers of buyers and suppliers, the transformation of resources into capabilities, and the creation of value along the supply chain of key international market players. The research is undertaken on the bases of cutting edge literature, articles, and journals. It is enriched by the use of primary research in the form of an interview with the general manager of Metro Cash & Carry, the world’s largest self service food and non food retailer. Contemporary studies have been conducted through online sources. The contributing factors for a successful strategic alignment in China are economies of scale and scope. This has been gathered from the analysis and encompasses t the product range and the store format adaptability and excellent procurement logistics with regards to strong supplier relationship management. The store format adaptability arises from excellent local supplier relationship for optimized product fit. The implications of this research derive recommendations in the area of quality and freshness of product assortment, excellent global procurement logistics, political negotiation powers, and organic growth for sustainable competitive advantage for future expansion.