The strategic choice of market entry mode in retail internationalization

The aim of this paper is to explore the choice of market entry mode of mass retailers in retail internationalization, which is a significant part of the retail internationalization process. This topic appears to be largely ignored in the previous studies. In order to address the topic, the essay widely reviews the market entry modes used by international retailers. A successful expansion in host country requires the retailer to achieve local economies of scale and critical mass efficiently that the overseas operations need. Consolidation represents the trend in today's highly competitive retail market. Examining the combination of these three determinants, this research concludes that large-scale acquisition is the most efficient market entry mode for a mass retailer in retail internationalization, which can facilitate the retailer's sustainable development in the long term. Joint venture is the second choice, and organic growth is the last option for a mass retailer.