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The drivers of international marketing are influenced both by external and internal factors. Broadly, these factors can be divided into market needs, technology, cost –scale, government as well as communication (Czinkota & Ronkainen, 2013).
The organization considered in evaluating these factors on the global platform of international expansion is Woolworths Limited, Australia. Woolworths Limited mainly deals in its subsidiaries and the subsidiary that will be evaluated here is Woolworths Supermarkets. Woolworths Supermarkets is only operating in Australia and outsourcing its 96% fresh produce (Woolworths Limited, 2016). The supermarket has been acting as a duopoly with Coles and desires to extend its supermarkets chain of fresh produce in New York, United States. The drivers that needs to be considered are given as following.
Market Needs
Woolworths Supermarkets in Australia has multi-channel retailing, which needs to be extended further in international marketing. The supermarket chain has unique as well as profitable business. However, the retail chain needs to improve while meeting the needs and preferences of the customers. Nevertheless, Woolworths has been meeting the demand of customers by giving unbeatable value to fresh food because there has been a drift to healthier foods. It opts to take fresh market share leadership towards the level of grocery through quality, experienced supply chain management from the farm to the consumer, better merchandising and presentation (Woolworths Limited, 2012). As this retail chain is based on customer led choice, it will provide new categories across the stores in the international market
Technology
The best practices and processes in technology will be adopted that will provide true knowledge to the customers. Moreover, with the help of online portal, it will deliver fresh food products from Woolworths supermarkets to customers in small span of time. Overall, it promotes to practice, fresh food delivery by ordering online.
The cost scale can be based on the mode of entry strategy applied in international market. Moreover, the cost scale will be examined by providing the opportunity to win share through special offer that could be tailored in all stores based on the budget catchment. The local specialist of New York in fresh food will provide the knowledge of the market in a way that the retail chain could devise good range with fewer price points (Woolworths Limited, 2012).
Government
The United States follow Trans-Pacific Partnership and Free Trade Agreement for business investments from other countries. These agreements provide lower economic barriers to promote trade. However, Woolworths Supermarkets will be established in New York under the Free Trade Agreement of United States (Schott, 2016).
Communication
Woolworths Supermarkets in fresh produce determines to build the brands in New York using credentials as well as focusing on customer values and needs. Moreover, in the international market, Woolworths will give fresh food produce at competitive prices with relevant promotions. On the other hand, when it comes brand communication strategy, Woolworth’s supermarkets is customer driven and develops to provide Everyday Rewards based on loyalty points (Woolworths Limited, 2012).
To conclude, it can be said that drivers of the international marketing are the key aspects that needs to be considered before international expansion. As far as Woolworths Supermarkets retail chain is considered, the expansion in its fresh produce will prove to be beneficial for both Australia as well as United States.
Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Cengage Learning.
Investor Presentation: Strategic Priorities of Woolworths. (2012). Woolworths Limited. Retrieved 4 August 2016, from http://www.woolworthslimited.com.au/icms_docs/130560_Investor_Day_Presentation_2011.pdf
Schott, J. (2016). Are Trade Agreements Good for Americans? - Room for Debate - NYTimes.com. Nytimes.com. Retrieved 4 August 2016, from http://www.nytimes.com/roomfordebate/2016/03/17/are-trade-agreements-good-for-americans
Woolworths Supermarkets - Woolworths Limited. (2016). Woolworths Limited. Retrieved 4 August 2016, from http://www.woolworthslimited.com.au/page/Who_We_Are/Our_Brands/Supermarkets/Woolworths/
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