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Defensive strategies of local companies against foreign multinationals evidence from Chilean retailers

Bianchi, Constanza & Reyes, Carolina (2005) Defensive strategies of local companies against foreign multinationals evidence from Chilean retailers. Latin American Business Review, 6(2), pp. 67-85.

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Abstract

Many retailers have been expanding into foreign markets, although not all such attempts at internationalization have been successful. This study examines the actions taken by Chilean retailers that negatively affected the operations of Home Depot, Carrefour and J.C. Penney in Chile. The results show that the strategies employed by local companies have consisted in: (1) becoming informed about the company's strengths and weaknesses, while imitating its best practices; (2) deepening their own market know-how and hiring high-level executives to lead defensive strategies; (3) opening stores in strategic places in order to win advantages concerning location; and (4) investing in technology and the training of employees. The overall effect on the market has been one of concentration and consolidation of the retail industry.

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ID Code: 21069
Item Type: Journal Article
Additional URLs:
Keywords: Retail, internationalisation, Chile, success, foreign retailers, local defensive strategies
DOI: 10.1300/J140v06n02_04
ISSN: 1097-8526
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > MARKETING (150500) > Marketing Management (incl. Strategy and Customer Relations) (150503)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Advertising, Marketing & Public Relations
Copyright Owner: Copyright 2005 Routledge
Deposited On: 10 Jun 2009 14:10
Last Modified: 29 Feb 2012 23:56

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