jimk.17.1.58
33
58 As multinational corporations have expanded beyond the borders of developed economies and into fast-growing developing regions of t he world, they have struggled to understand and manage a retail format that is dominant in many of those economies—the small retailer . The authors first synthesize existing literature on the phenomenon of small retailing to deliver a macro perspective of this retail format and its evolution. Then, they delve deeper into an urban market in a devel- oping economy and provide an empirical illustration that sheds light on the decision-making processes of the small retailers and their operational performance. This yields a complementary micro per- spective of the phenomenon that has been absent in the literature. The analysis provides insights into how firms that enter markets in developing economies can manage and profit from this important but freq uentl y ove rloo ked distr ibuti on fo rmat. According to the World Bank Development Indicators 2008 report, 107 of 209 world economies are either low-income economies (with an annual gross national income per capita of $9 05 or less) or lower- middle-in come economies (income per capita between $906 and $3,595). However, these developing economies now produce 41% of the world’s output, and 5 of the 12 largest economies are now in the developing world. China’s and India’s economies are expected to grow to 22 times their current size by 2050, whereas the United States’ economy is expected to grow only approximately 2.5 times (Wolfensohn 2006). Developing countries now constitute more than 80% of the world’s population and are predicted to grow from five billion people in 2008 to eight billion people by 2050. With this shift in the geographical focus of growth, multinational companies are attempting to develop economies in Asia, Africa, and South America as profit sources. However, competencies and assumptions that have served the companies well in developed markets cannot necessarily be transplanted into developing mar- kets (White and Absher 2007). Well-documented failures (e.g., that of PepsiCo in Venezuela) demonstrate that managers must build localized knowledge to perform well (Caves 1996; Harvey and Novicevic 2000). A key challenge in consumer markets in developing economies pertains to the “last-mile” problem—that is, the challenge of get- ting goods to the final consumer. Big-box stores and other sophis- ticated, if smaller, retail outlets commonly encountered in devel- oped economies are far from being the dominant retail format in developing economies. Instead, managers often need to work with distribution channels that incorporate numerous small Practices and Performance of Small Retail Stores in Developing Economies ABSTRACT Keywords: retailing, developing countries, small retailer practices, emerging markets, inventory management, retail performance Tomasz Lenartowicz and Sridhar Balasubramanian Journal of International Marketing © 2009, American Marketing Association Vol. 17, No. 1, 2009, pp. 58–90 ISSN 1069-031X (print) 1547-7215 (electronic)
-
Upload
teodora-budurea -
Category
Documents
-
view
216 -
download
0
Transcript of jimk.17.1.58
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 1/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 2/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 3/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 4/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 5/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 6/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 7/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 8/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 9/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 10/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 11/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 12/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 13/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 14/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 15/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 16/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 17/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 18/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 19/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 20/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 21/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 22/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 23/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 24/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 25/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 26/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 27/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 28/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 29/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 30/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 31/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 32/33
7/27/2019 jimk.17.1.58
http://slidepdf.com/reader/full/jimk17158 33/33
