Term
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Definition
| how people live their lives in different regions around the world |
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Term
| important assumptions of cultural geography |
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Definition
cultures and societies affected by their landscape (where a culture is located, physically, will influence that culture)
culture and societies also affect their landscape
(includes religion, language, economy, political beliefs) |
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Definition
| relates to distribution of industrialization or wealth |
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| important assumptions of economic geography |
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Definition
economic activities affected by the landscape
landscape afffects economic activities
-takes into account social, cultural, and institutional factors in environment |
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Term
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Definition
| some products are global products, meaning they can be sold in foreign markets with virtually no adaptation |
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Definition
| most products need some changes in product of promotion strategy to fit new markets |
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Term
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Definition
(lowest level of involvement) shipping a product to a foreign country
-limited risk, but limits exposure to market
CAN NOT BE USED FOR RETAIL FORMAT- YOU CAN EXPORT PRODCT, BUT YOU CAN NOT EXPORT A STORE |
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Term
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Definition
| (the product or name) allows another company to produce a product under that name-- risk of losing control of quality. financial risk small, doesnt give comapny exposure to foreign market |
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Term
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Definition
| (with a company in destination country) when 2 companies join together to form a new business entity (ex walmart joint venture with CIFRA) |
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Term
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Definition
| manufacturers own comapny in the foreign market. in effect, the manufacturer sets up a facility in the foreign country, produces the product, and sells the product there (greatest exposure) ex. IKEA |
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Term
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Definition
| allow a foregin company to use the licensing companies name- retailers sacrifice control |
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Term
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Definition
| (generally used by retailers) through franchise arrangement, the franchisor gives imitators the right to use the retailers name, the retailer, in turn, gives franchisee the trainng needed to run the business (mcdonalds) |
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Term
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Definition
| a country that has too much retail space per consuemr (ex. US) |
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Term
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Definition
| the result of overstored- obtaining sales at one store at the expense of another store |
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Term
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Definition
| if the economic climate at home is less than optimal, they can quickly move into another location- in economic downturn, retailers have the additional advantae of being able to open new stores with little lead time |
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Term
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Definition
| clothing retailers that distinguish themselves from others with unique line of private label merch (ex h&m) |
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Term
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Definition
| expanding outside of the country is less risky than coming up with some new way in home country |
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Term
| evidence of mature home market |
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Definition
| sales revenues leveling off, makret share at home high, sales resultus calculation (overall company sales, same store sales, sector sales), market share |
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| need to diversify investment |
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Definition
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Term
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Definition
| (type of diversification) different formats (walmart then formed sams club, neighborhood markets) |
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Term
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Definition
type of diversification
same format, new store
(ex. gap and banana republic) |
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Term
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Definition
type of diversification
different businesses (conglomerate-old sara lee) different countries (zara, IKEA) |
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Term
| evidence of need to diversify |
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Definition
| sector market share is high, market over stored (too much retail space/capita |
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Term
| expansion at home blocked by legislation |
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Definition
could be any number of indicators, depending on legislation
varies wiedely- look directly at legislation |
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Term
| possession of a unique market segment |
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Definition
| unique retail format- expand aggressively into foreign markets, bc if they themselves do not, imitators will replicate their unique format and enjoy the benefits |
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Term
| evidence of unique market segment |
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Definition
extremely rapid pace of expansion of # of stores, expecially in new countries
ex H&M expands globally 10-15%/yr while zara slowed |
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Term
| intense competition at home |
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Definition
to avoid/lessen profit squeeze at home
concentration ratio c4=100=monopolu
c4>60=oligopoly
c4<40=monopolistic competition
c4 very low=perfect competition |
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Term
| economic downturn at home |
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Definition
| decrease exposure to economic problems- retail among first industries to respond in economic downturns |
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Term
| evidence of economic downturn |
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Definition
| GDP Activity, umemployment activity, inflation, consumer confidence index |
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Term
| first mover advantages in location |
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Definition
capitalize on a good location (wrapping up the primo RealEstate) REFERS ONLY TO REALESTATE
purchase of real estate in off-shore markets |
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Term
| strong companies going international |
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Definition
(mcdonalds, ikea) seek international markets when worldwide distribution is their goal
have choice of where to expand, and whether to expand in initial format or in modification |
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Term
| weak companies going international |
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Definition
(kmart/sears)
cannot maintain a market share in home market
internationalization is their attempt to find a market with less competition |
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Term
| unique companies going international |
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Definition
(zara, H&M)usually expand using exact replication of their standard format - specialty store format- lifestyle retailers
can expand to less and more developed countries |
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Term
| standard companies going international |
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Definition
| (carrefour, walmart) expand internationally to capitalize on their largescale format- focus on tupe of vocational technical training |
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Term
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Definition
| not enough retail space/capita |
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