Going Global...
Africa's largest retailer is Shoprite grouop. This company started in South Africa in 1979, and it began to expand in 1994. Shoprite has a umber of businesses that serve grocery and home shopping needs for the countries like Africa and around the Indian Ocean. Shoprite's stores serve different income levels in these developing countries/ Shoprite has found customers with disposable income that will buy in these low-income countries.The Indian government recently allowed Shoprite intot the Indian market. Its store in Mumai is the India's largest store. Shoprite has competition from South African grocer Pick 'n Pay, which also is expanding into new markets. Both of these stores cater to local markets to meet their inventory needs. They also have strong social responsibility policies to help economic development and to maintain sustainability of resources.
In at least 5 sentences, discuss why these two grocery stores would choose to expand in less developed countries.
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22 comments:
There are a number of reasons to why Pick n' Pay and Shoprite would choose to expand in less developed countries. One reason is that because of their service to third world countries, their global rep would shoot up. Also in most third world countries, their isnt a Giant, Shoppers, or Safeway; which means their is no overwelming competition. Because of the lack of competition, their respective companies will flourish. Whatever the reasons may be, I support these countries for serving lesser developed countries.
These two grocery stores would choose to expand in less developed countires for many reasons. They may want to expand thier popularity and gain the trust of those who have a low income. If they can afford it, they'll buy it. Most of the people in underdeveloped countries are poor, so if they can get things for a good price, they'll buy it and the companies will make a lot of money off of the sales. This wouldn't be a smart thing to do if the grocery stores charged higher prices because no one would buy anything.
These two grocery stores would target less developed countries because there isnt really any competition in the country yet because of the low incomes. If they open the stores their, and there arent any more nearby they can control the prices to what they want. In being able to control prices they will be able to make the most profit. These stores are trying to establish themselves before the competition arrives and then they will be better off with profits.
The primary and foremost reason these companys want to expand in less developed countries is becaue there is less competition. Also the supply is cheaper to afford. In addition, the demand is much higher than the supply. With there resources, they are powerful enough to monopalize some parts of India. In addition, the population plays a major role in this, because there are more consumers in demand.
Since these countries are developing, most of the people are poor, and have low income. Therefore, these stores sell cheap products and they can still be successful, because they're the only ones in the market, that's affordable for these people. It's also better for the people, because they can buy cheap products, that probably has better quality, than those products that they sell in markets on the streets.
-Balazs
These two grocery stores would choose to expand in less developed countries because both of these stores help the local markets by meeting their inventory needs so that they can afford it. Both of them also have strong social responsibility policies to help economic development which means they well monitor their economy. They also help maintain sustainability of resources. Doing this they would help the less developed countries by letting them afford them. They help the countries in need.
-Iris
There are many factors to why these two grocery stores would develop in less developed countries. In less developed countries there would not be as much competion. Lilke in AMerica we have giant and shoppers and many others. But in less developed countries there will not be as many, because not many grocery stores would set up shop there. Therefore letting the two grocery stores popularity sky rocket.
Alexandra
They choose to develop in less developed countries because they want to help the economic growth stability of that country. By opening markets over there will help the country with many financial problems. Such as, economic stability, jobs for poeple and etc. The company would also profit it self, while making a profit for the country. And since both are an competetion, they both will try to compete with sales and prices of the store.
-saif mirza
These two grocery store choose to expand in less development countries because they probabilly had alot of people with disposable income. They probabilly made bussiness that way because there were more people with disposable income then with higher income. The more people that goes there to shop for their groceries, the more bussiness they make. This is probabilly why they choose to expand in less development countries.
Maria Rouhollah
These two grocery store would choose to expand in less developed countries because of their income and they like to market to local people. They market to people with different income so that more can buy their products. They sell products that the local people would buy. They market to the people that live around the area.I think that they choose to do this because there is less competition from other grocery store company.
Lisa
they wouldnt expand because there only in frica or at India. Reason would probably be becuase i guess you can say its only in these two countries and in order for you to get what you want you would have to come either africa or india.It would make shoprite popular. THere both have responsibility for the economic development which i think its good.
juan martinez
If one of the grocery stores started opening up in developing countries than there wouldn't be as much competition if they were to open up in larger countries. If they have stores in larger countries than people have options on which store to go to and compare prices with the different stores. Once a store is opened up in a developing country than the people will only look to buy stuff from that store because there aren't any other big markets. Then once a store starts getting a lot of customers, then different grocery stores will want to start opening there to be competition. That's how the marketing competition revolves, it just keeps getting bigger and bigger.
These Shoprite groups are for people in India and Africa that have low paying jobs. And since most the people in Afica and India have low income the Shoprite are expanding.Therefore these stores have strong social responsibiltes so they can help these conutrys develop and not be so poor as they recently are. But these Shoprite also have compition between South Africa And Mumai grocery stores.
The two markets would probably want to expand more because of the popularity and competition factor. If the market was more known then bigger countries will see this and want to include them in their business. And if they are in a less-developed country then the competition will not be as bad as countries with big markets. The popularity will be good for their country and can also expand the business. Overall, the market will be great because it can involve a boost in popularity but not bad in competition
The are a number of reasons that these companys want to get global in less developed countries,is because there are less competition around. Also the supply there avaiable at a cheaper and affordable. Thhere is a high demand which is much higher than the supply. With there resources, there is a monopoly which makes up some parts of India. In addition, the population plays a big role in this, because there are more consumers in demand then there are products.
George Owino
Shoprite and Pick 'n pay chose to expand in less developed countries because they are trying to redevelop the economy there. They allow people from all income levels to shop at their store and try to help people with lower income pay for their food. This has helped them become a big food industry. They compete against eachother which also makes it help more people. They not only have to keep up business with their store, but they have a social responsibility as well.
-erin
Two of the same type of stores would try to target in the same area because the country or place they are trying to sell to, hasn't fully developed yet. Because there is no other competition anywhere else, these two stores will be perfectly fine with the low income customers. There are probably a lot of customers, and only 2 stores, so they will do well.
Amanda Clark
They would try to expand their business globally. Globally their reputation would shoot up. This would be helpful because in third world countries there aren't really supermarkets such as: Giants, Safeway, etc. Their companies would excel based on low competition. Without any competition your company has no choice but to flourish.
-Sam Henderson
both these companys are smart in doing this. first off the cost of setting up and maintaining a business there is much cheaper than in a more developed country. Also people will be very intersted in somthing new in there country especially if it has better quality than what there use too. It also makes the companys look good. so withere there development in the poorer countrys they wil have a cheaper and easier enviorment to expand in even if it may not be the nicest place in the world.
BY Jd deal
Pick n' Pay and Shoprite are smart to choose to expand in less developed countries. Not a lot of companies market there products to third world countries, so there's let competition for the two grocery stores. Because there's less competition, their business is able to sky rocket. People who are less fortunate tend to only by things they need, and food is definitely one of them. Pink n' Pay and Shoprtie are making a name for themselves to a large marketing group. -Michelle Tatiya
i think the reason to why pick n' pay and shoprite choose to expand in third world countries is because less competiton.The laber should also be cheap.i think its a good thing because with all the people go to china.
daniel boku
I think that the reason they would want to expand their stores is pure economical. They just want to expand their markets, and expand their consumer base. Companies not only get what they need from consumers, but consumers get what they need from companies. It's a win win situation especially in third world countries where affording things can be a problem.
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