THE INTERNATIONALIZATION STRATEGY

Formulation Of The Internationalization Strategy Of A Company



Executive summary

This paper advice on entry mode and investigates as possible candidates for the investment. It advice on dealing with institutional and cultural differences between the host and home countries i.e. from Europe and Middle Ease. Furthermore advice on the type of control strategies that would maximize the likelihood of the parent company achieving its major objectives from the investment. The Middle East is currently proving an attractive destination for retailers? with many sectors now being represented in the region's markets. This case considers the opportunities and threats presented by the Middle East environment and outlines the expansion of UK department store Debenhams in the region. With franchise partner M&H Alshaya? it now has six stores in the region? with further openings planned. The Debenhams chain? branded as “Britain's favorite department store”? has 100 stores in the UK and Ireland. Its consistent high performance is based on own brand ranges and its “Designers at Debenhams” initiative where names such as Jasper Conran and John Rocha design exclusive but affordable ranges. A less well-known aspect of its continuing growth is its international operation - established in the late 1990s - with stores in Scandinavia? Hungary and Malaysia. Debenhams also has a significant Middle East presence and its success in the region in just five years is an object lesson in managing overseas expansion.Formulation of the Internationalization Strategy of a Company

Introduction

Debenhams first entered the international market in the late 1990s? when it opened its first store in the Middle East; since then it has gone on to establish more stores in the region and has expanded its international operation to Scandinavia? Hungary and Malaysia. Over the past four years? international sales have grown and the company emphasises that it is expanding out of strength? and not as a response to difficulties in the home market (Rahman? 2002). In the UK? Debenhams? which promotes itself as “Britain's favourite department store” is performing well and operates 100 stores in the UK and Ireland. The retailer's own brand ranges have been a large part of that success? in particular the “Designers at Debenhams” range.

The Debenhams chain? branded as “Britain's favorite department store”? has 100 stores in the UK and Ireland. Its consistent high performance is based on own brand ranges and its “Designers at Debenhams” initiative where names such as Jasper Conran and John Rocha design exclusive but affordable ranges. A less well-known aspect of its continuing growth is its international operation - established in the late 1990s - with stores in Scandinavia? Hungary and Malaysia. Debenhams also has a significant Middle East presence and its success in the region in just five years is an object lesson in managing overseas expansion.

Internationalisation

Like many retailers? internationalisation was a strategy that Debenhams considered as a long-term option. It was not until a potential franchise partner approached it that it became a serious strategic option for the company. Alshaya Retail's suggestion that the company open a store in ...