Global Business: International Business Concepts & Theories - Impact of Globalisation on Retail in Australia

2525 Words Feb 15th, 2014 11 Pages
ESSAY
International Business Concepts & Theories

This paper references two recent newspaper articles, which focus on the rise of online retail in Australia and the decision of global retail giants to enter the Australian marketplace respectively. The paper aims to identify and discuss the implications for the Australian government, Australian businesses, particularly within the retail sector, as well as implications for international businesses which have been highlighted through these articles. This paper recognizes globalization as the most applicable and influential international business concept relevant to the changes within the Australian retail landscape. The paper also realizes theories related to differences in culture in
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Furthermore, Australian based multinational companies, such as retail giants ranging from Westfield to David Jones have been forced to launch e-commerce sites in order to maintain a market share and a competitive advantage with international sites.

The recent rapid expansion of global fast-fashion giants into the Australian marketplace has had a similar impact on the Australian fashion-retail industry that the increase in online shopping has, putting Australian retailers and small business under immense pressure and stress to remain in a position to compete with these global retailers. The article “Local retailers feel the heat from International invasion” published in The Sydney Morning Herald on November 26, 2013 highlights the ways in which ‘fast-fashion’ retailers have revolutionized how Australian consumers shop with big-name internationals establishing a presence within the Australian retail landscape . The article acknowledges that the catalyst for the International expansion of the majority of these retail giants has in fact been the internet.

The expansion of retail giants into the Australian marketplace has
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