The Study Of ABC’s Entry Strategy For International Market

Internationalization is a trend which cannot be halted and the study of internationalization has become a hot topic in retailing industry. ABC is one of the top discount retailers in US with around1,000chain stores who are under fierce competition with Wal-Mart. ABC differentiates himself with Wal-Mart via a better brand&quality management, while during the economic winter starting from2008economic crisis, customers became more price-conscious and decreased shopping demand which left ABC to an unfavorable situation&affected ABC’s growth speed seriously. In the meantime, Wal-Mart started to learn from ABC’s strength in order to grasp more customers from ABC’s guest base. In US domestic market, ABC is facing fiercer competition and saturating market; in overseas market, Wal-Mart has got a dominated position and it is speeding up pace to gain more market share. How should ABC react to the crisis? ABC is always keeping in a reserved&moderate working style, whether should he take risk to make internationalization exploration? Which international market should he select firstly? How should he enter that market? This thesis studied those questions basing on Franklin R. Root’s theory of Entry Strategy for International Market. This Entry Strategy is a broad&systematic concept, it not only studied entry mode to international market, it also covered topics of motivation analysis of entering international market, target market selection, and competitive strategy identifying in target market. This thesis integrated both theoretical and practical study methods to analyze ABC’s situation&problem, several subjects’ theories and modules have been used to support the thesis analysis. The purpose of this thesis study is to solve ABC’s actual problem, meanwhile, the study can also be taken as reference of other enterprises which are planning to explore international market in the near future.