direct investment |
The investment and ownership by a retail firm or a division or subsidiary that builds and operates stores in a foreign country. |
diversification opportunity |
A strategic investment opportunity that involves an entirely new retail format directed toward a market segment not presently being served. |
joint venture |
An entity formed when the entering retailer pools its resources with a local retailer to form a new company in which ownership, control, and profits are shared. |
market attractiveness/competitive position matrix |
A method for analyzing opportunities that explicitly considers the capabilities of the retailer and the attractiveness of retail markets. |
market expansion opportunity |
A strategic investment opportunity that employs the existing retailing format in new market segments. |
market penetration opportunity |
An investment opportunity strategy that focuses on increasing sales to present customers using the present retailing format. |
mission statement |
A broad description of the scope of activities a business plans to undertake. |
positioning |
The design and implementation of a retail mix to create in the customer’s mind an image of the retailer relative to its competitors. Also called brand building. |
private-label brands |
Products developed and marketed by a retailer and only available for sale by that retailer. Also called store brands. |
related diversification opportunity |
A diversification opportunity strategy in which the retailer’s present offering and market share something in common with the market and format being considered. |
retail format |
The retailers’ type of retail mix (nature of merchandise and services offered, pricing policy, advertising and promotion program, approach to store design and visual merchandising, and typical location). |
retail format development opportunity |
An investment opportunity strategy in which a retailer offers a new retail format — a format involving a different retail mix — to the same target market. |