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Effects of business environment on international retail operations: case study evidence from China

Wantao Yu (School of Applied Management & Law, Buckinghamshire New University, High Wycombe, UK, and)
Ramakrishnan Ramanathan (Department of Business Systems, University of Bedfordshire Business School, Luton, UK)

International Journal of Retail & Distribution Management

ISSN: 0959-0552

Article publication date: 9 March 2012

6781

Abstract

Purpose

The purpose of this paper is to investigate the impacts of the business environment on operations strategy encompassed by competitive priorities in China's retail sector.

Design/methodology/approach

This is a case study of a multinational retailer to understand how the company develops appropriate operations strategies to survive in the competitive and dynamic Chinese business environment.

Findings

The study identifies that companies intending to expand their businesses in emerging markets face many challenges in the new business environment, and that various dimensions of the business environment (e.g. business cost, competitive hostility, and environmental dynamism) affect the development of retail operations strategy. The strategy of flexibility is particularly important for international companies to survive in an increasingly dynamic and competitive environment. Foreign retailers need to be flexible and agile, adapting to the Chinese market environment in many ways in order to succeed.

Originality/value

This study seems to be the first in investigating the effects of the business environment on international operations strategy in the service (retail) sector, especially in the Chinese context.

Keywords

Citation

Yu, W. and Ramanathan, R. (2012), "Effects of business environment on international retail operations: case study evidence from China", International Journal of Retail & Distribution Management, Vol. 40 No. 3, pp. 218-234. https://doi.org/10.1108/09590551211207175

Publisher

:

Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited

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