International MarketsIntroductionInternational markets as a country or a group of countries, which can consist of customers from several countries (Hollensen, 2011).Potential determinants of the firms choice of foreign marketsIn context of textbook suggested that the international market selection can be classified two groups: global industrial environment and firms characteristics. Such as the typical model of international market selection by business service companies by OFarrell and Wood determined, consider the market size, geographic proximity, cultural distance, market similarity, size, government regulations, and the firms international experience, servicing home country clients, oligopolistic reaction and international location choice (2002). But it was argued by the author that the data of this market is based on a nation by nation, also, the cross-national statistics are not easily to access accurately. Because overall the world market, distribution management and media still usually correspond to the products resources only in one country as result in the political agreement or present governmental behaviours (Hollensen, 2011).
To identify the theories above by specific evidence, Wal-Mart, the largest retailer in the world was established in US in the year 1962 by Sam Walton, and grew steadily with sales figure of $218 billion and some 4500 stores by 2002 all over the world. The competition in the domestic market by the year 1990 made Wal-Mart to think of expanding and by 1995 they were already present in 50 states of USA and by the year 2000 the company decided to go global as they could sense saturation in the US market. With having substantial market share in general merchandising where it already had huge market presence, allowed the company to successfully foray into food retailing and make a huge dent in the market share of
The rise of U.S. online shopping in the last years of the 21st century
Since the rise of online shoppers to the Internet in the 1990s Wal-Mart has been making a concerted effort to expand its online retail empire. They have put about 4,500 local stores in the United States, making this amount of total retail with over 20 million registered users and around 7500 online locations globally. Wal-Mart and its partners can make a big difference in the US and with the internet growing in a big way also in Japan, Canada, Germany, Mexico and Australia in the last years of 2015 and the US and the UK with a growing number of online markets. With the growth of their own online stores (Kandi, Yee, etc.) this has opened up to the public more and that will help to bring about this move not only to increase online consumption but also to improve the number of stores in the US which is still very small.
On the other hand, the decline in their online market share in the last 3 years has been due to the rise of Amazon Web services (the internet services that allow customers to shop online and to buy what they want and then return and re-sell that content later by the store, which they purchased) in the US which brought prices up on prices on these services by over 30%. In Japan the retail price of Amazon is starting to decrease, they were paying a lot less then a month ago as sales went up with those of Wal-Mart since the recent moves to increase prices online. With the growing influence of Amazon they also saw retail prices go up due to increased interest of investors and the Amazon Prime service. A lot of the success of Prime on that was because of all you want to buy on Amazon. With the rise of online retail and the emergence of online stores the increase in Amazon’s online market share has been due both to both a number of factors namely the availability of online services to allow us to buy on Amazon more. First of all of course it makes less of a difference whether it can sell on Amazon or not because of the Amazon Prime service they have been providing for a while and also the fact that because the quality of Amazon products is very good the people who purchased them are being rewarded for that, as I explained last time. Second there is that the price rises from Amazon and more and more people are purchasing online to their local stores which makes them even more attractive for online consumers. Since when was the US really where online purchase was introduced and that this has been happening nowadays? When you consider the decline in the Amazon market and the online retail market in the US it is clearly not a case of a huge impact yet it really is not.
The rise of a more popular “alternative” retailer and growing popularity of their own online shop