Why and How Retailers Internationalize - H&M Literature review

why and How Retailers Internationalize - H&M - Literature review ExampleThere atomic number 18 a spell of reasons and motivations for the retailers including H&M to internationalize. One of these motivators is retail expansion due to saturation in the local trade. early(a) motivators for internationalization are resource want, market seeking, efficiency seeking and strategic asset seeking. Resource seeking and market seeking are usually motivators for a firms initial internationalization strategy, age the other two are for sequential internationalization. After motivation triggers the internationalisation process, the retail firms has to study the market to be entered, so they can optimally position themselves there. Number of factors ordain help the firms including H&M in market positioning, thereby aiding them in carrying out the operations aptly. These typically include selecting the right orient market, studying and understanding the competitive environment, then accordi ngly formulating steps to improve their competitive position, having a reinforced store brand image, and controlling the supply chain. Another very important factor that would determine winner is the mode of market entry. There are a number of modes but the most common ones are licensing, franchising and joint ventures. These modes are only followed by number of retailers including H&M while expanding overseas. There are others entry options such as acquisition, mergers and contracts, but is not a part of the scope of this paper.This paper exit review existing literature on reasons why retailers internationalize Motivation for Internationalization, in brief. These are fundamentally the same for many firms, retail or non-retail. Moreover, market position that ensures that an internationalization strategy is a succeeder in foreign shores will be discussed. Finally, how retailers internationalize or methods they use to enter new markets will also be discussed concisely. All of this will be discussed keeping in mind the practical model of the renowned fashion