Strategic Development in Global Food Retail

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Case Study – Strategy Development in the Global Food Retail Supermarket Industry Introduction In order to develop a global strategy, the deep understanding of the term ‘globalization’ is very important for every company. Globalisation: The globalization increases the mobility of goods. Globalization is a term describing different complex ideological, political, environmental and cultural forces as one world. During World War II, the national boundaries got faded and financial markets, information services, manufacturing concerns as well as cultural products have made themselves available to the whole world. American hamburgers are available in Tokyo today and Japanese cars gets assembled and marketed in America. Virtually…show more content…
* The cost of entry test: the cost of entry need not capitalize the prospective income. 1. The attractiveness test: Either the industry operating has to be attractive in nature or it should at least have the capacity to turn attractive in the near future. (Porter, 2009) The relationship between responsiveness and supply chain cost is regarded as substitution. The synergy factor is highlighted through identification of the different scope of supply chain responsiveness. The conclusions derived from this analysis are as follows: a. The identification and exploitation of synergy has helped supply chain managers to identify the problem and take actions accordingly which could implement responsiveness and drive costs down. b. By considering the specific extent of responsiveness, the organization increases the potential to find synergistic relationships which can be used for competitive advantage. ii) Portfolio theory (Outside –In)-‘eggs in multiple baskets’ The eggs in multiple baskets refer to Diversification. Eventually all the progressing companies diversify in one way or other. If the eggs or investment is in the single basket and if we drop the basket, then all the eggs break. (Edwin, 2009) iii) BCG / GE-McKinsey Matrix
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