Globalization and Its Benefits
The article, “Marks & Spencer Plans Massive International Expansion” presents key concepts that include globalization and its benefits, global market entry strategy adopted by Marks & Spencer (M&S), the impact of the economic environment, and M&S international distribution strategy. The article highlights that some key benefits for M&S include increased revenues and expansion of the market into major global markets, such as China, India and Europe which gives it greater stability and security (Ruddick, 2014).
Global Market Entry Strategies
The article further features some key market entry strategy adopted by M&S, which include joint ventures, international direct investment, and contractual agreements achieved through franchising. M&S has international direct investments in many international markets, such as India and the Middle East (Ruddick, 2014). With regard to joint ventures, the company aims to enter into trade agreements with local traders in China. Franchising is also another market entry strategy M&S considers to use particularly in China.
Economic Environment in Global Markets
Another major topic that stands out in the article is the impact of economic environment in global markets. In essence, the economic environment of a market affects the possibility of a company’s success because of factors, such as the people’s ability to buy goods (Ruddick, 2014). Also, economic development affects other factors, such as infrastructure. Notably, one market that presents a major problems for M&S because of its economic environment in China.
International Distribution Strategy
The last topic that evident from the analysis of the article is the international distribution strategy. Many factors determine the distribution strategy that a company adopts for each market. In the article, major distribution channels adopted by M&S include direct sales and sale through the dealership (Ruddick, 2014). These strategies give the company a direct approach to the customers in the market.
References
Ruddick, G. (2014). “Marks & Spencer Plans Massive International Expansion.” The Telegraph, Telegraph Media Group, www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10737831/Marks-and-Spencer-plans-massive-international-expansion.html
