Why Some European Discounters Enter Emerging Markets – and Others Do Not

Photo by  Kolle

Discounters are companies, whose strategic target dimensions are price leadership and cost advantages. This can be realized through simplicity and a high level of standardisation in the stores, a limited product line and private brands goods that focus on basic needs and high purchasing volumes. Incontestably, the food industry and the home furnishing industry can be identified as selling goods with a focus on basic needs. Therefore, it is not surprising that the strategic approaches of some of the most successful retailers in these two industries can be identified with a discounter philosophy to a certain extend. The global marketing strategy however, can be different. Continue reading