Abstract
In today's business world, consumers looking for convenience and speed are engaging in online and mobile shopping. In the grocery sector, there is growing demand for fast delivery. Getir is a Turkish ultra-fast grocery delivery retailer which operates across nine countries, delivering “happiness” to Turkish, British, Dutch, German, French, Spanish, Italian, Portuguese, and American consumers' doorsteps. Combining cutting-edge technology of its app with excellent distribution strategies, the company is associated with convenience, reliability, and commitment to providing the best possible customer experience. This chapter discusses the internationalization process and marketing strategy of Getir, a developing country company's expansion into developed markets.
TopInternationalization Of Retailing
Internationalization is an important topic that shapes the retailing sector globally. Internationalization of retailing refers to the process of expanding a retail business across national borders and allows companies to enter into new markets and access new customers. Retailers are transferring their retailing know-how, expertise and operating techniques to host markets. At the same time, they aim to grow and diversify their risk in these new markets.
There is a growing number of retailers broadening their markets of operations and becoming involved in international markets (Akehurst & Alexander, 1996). Convergence of the needs and wants of the consumers, increasing demand for globally accepted offers, advances in technology, increasing travel and mobility, and favorable political, economic and cultural environment are factors facilitating the internationalization of retailers. Different cultures, regulations, competitive structures and consumer behavior of the host markets also need to be assessed while internationalizing (Burt, et al., 2016; Douglas & Craig, 2011). Unfamiliarity with the market, weak distribution and inventory control systems, as well as overestimating the strength of the brand that is offered to the foreign market may cause obstacles in host countries (Treadgold, 1990; Treadgold & Gibson, 1989).
The choice of foreign markets to enter is an important decision for retailers. Environmental factors such as demographic characteristics of the population in the host country, preferences of the population, economic, socio-cultural, political, legal and regulatory environment, technological environment with advances in data infrastructure, and competitive environment are important factors to be considered while evaluating the host markets (Vida & Fairhurst, 1998; Gripsrud & Benito, 2005). Sternquist (1997) and Gripsrud and Benito (2005) assert that, in terms of foreign market selection, retailers expanding abroad initially enter geographically and culturally close markets and gradually move to more distant countries. Cultural similarity reduces risk and makes it easier for firms to operate in international markets (Cicic et al., 1999). The decision about which markets to enter is essentially based on weighing risks against opportunities.
Key Terms in this Chapter
Standardization: Offering identical product lines at identical prices through identical distribution systems supported by identical promotional strategies.
Logistics: All activities undertaken for the efficient and effective movement and storage of goods, services and related information, from origin to destination, to meet customer demand.
Ultra-fast grocery delivery retailer: Online platform which offers fast, on-demand delivery services for food and groceries through an application.
Internationalization: Process of expanding a business across national borders in order to enter new markets and access new customers.
Distribution: Movement of goods and services from manufacturer to consumer.
Foreign market entry strategy: Company strategy for international market entry and expansion regarding degree of investment, cost and control over host market operations.
Adaptation: Development of distinctive tailor-made marketing strategies for each international market the company operates.
Retailing: Distribution process involved in selling merchandise and services to the final consumers.