Impact of Globalization on Retail Industry

The assignment provides an overview of the global business environment and its impact on the retail sector. It discusses the drivers of change, such as technological advancements and market globalization, that have led to increased competition within the retail industry. The essay also examines how retailers like Marks and Spencer have responded to these changes by adopting strategies like business process reengineering (BPR) and Ansoff matrix to remain competitive.

Assignment

Table of Contents
Q- Overview of the Global Business Environment.....................................................................1
REFERENCES................................................................................................................................2

Q- Overview of the Global Business Environment
Due to globalization it has become very important for firm to sustain in market for long
term. For this they are entering in new market. This has highly impacted on global market
conditions. Marks and Spencer operate in retail sector. so, there has been a significant impact on
business due to increase in competition. Moreover, it has forced them to develop new products to
retain their customer and attract new one (Botha, Kourie and Snyman, 2014). In recent times,
competition within retail industry has increased to great extent. Every company is providing all
types of products to people. There has been rise in new entrants. Alongside this, there are some
drivers of change that has resulted in changing market situations in retail industry. These are as
follows :-
Technological – this is foremost driver of change that has shaped world economy. It has created
a platform through which business can grow and develop. For many organisation innovations in
technology has attracted them to enter in new market. alongside this, internet has become a
major source for rapid growth in retail sector. they are able to share and communicate quickly.
Market – this is another driver that allows companies to grow all around the world.
Globalisation has provided them vast number of opportunities to expand customer base and earn
more profits. through this, customers have also got option to choose from variety of products in
retail. furthermore, organisations are able to create network channels to deliver goods and
services.
Companies operating in retail sector have responded towards these changes in positive
way. They have entered in new markets and effectively segregated it to identify needs of each
target segment. In addition, they are using advance technology to reduce cost. Moreover,
organization have developed their own website through which services are delivered. They are
highly using social media in promoting (Cavusgil and Knight, 2015). For example – Marks and
Spencer is having their own website that allows customer to buy product. A model is been
applied by Marks and Spencer which is described below :-
Business process reengineering (BPR)- the company have implemented BPR model in
producing goods. This has resulted in reducing cost and increasing profit margin. They are able
to redesign their manufacturing process that has enabled in eliminating waste. Furthermore, it
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has made it easy for them to design process according to different countries market trends. With
help of it, they are able to generate more sales and profits.
Ansoff matrix- this is another model that is applied by retail companies. In this they develop
different growth strategies in order to enter in new market. This has helped them to differentiate
their products in easier way. Moreover, they are able to analyze market conditions and determine
what will be appropriate strategy. This has also provided flexibility for organization to opt for
multiple strategy in one market.
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REFERENCES
Books and journals
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology. Elsevier.
Cavusgil, S.T. and Knight, G., 2015. The born global firm: An entrepreneurial and
capabilities perspective on early and rapid internationalization. Journal of International Business
Studies. 46(1). pp.3-16.
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