Africanisation of to the south african ratiling

The internationalisation of retail businesses has become a global phenomenon while retailers around the globe expand all their operations further than national edges. This happening has captivated some academics attention. In Africa, South Africa appears to be heightened in this regard, with Shoprite in the forefront with the Africanisation of South African retailers. A review of Shoprite’s enlargement into the place results in two propositions and a few challenges that affect this process.

The larger significance in the propositions is further analyzed by a examine of different South African retailers expanding into Africa.

The review finds that although there will be opportunities pertaining to retailers in African countries, there are also significant challenges that may negate the opportunities.

Above all, the picked mode of entry into African countries plays a significant role in the overall internationalisation process and really should be a primary concern of managing teams looking at making this kind of a maneuver, and it is set up that the setting of access comprises by least five areas of crucial decision making.

Key words: Africanisation, retailing, intercontinental retailing, To the south African retailing, African markets, mode of entry, ICTs, international organization.

INTRODUCTION

Since 1994, South Africa has moved to turn into part ofthe African country, even to the point that this developed1and championed an Africa agenda. This kind of move openedup opportunities for South Photography equipment businesses within just thecontinent. Regarding this, leading To the south African retailers(including Shoprite, Woolworths, Massmart, Truworths)have already committed to, and now work in diverseAfrican countries. During the past decade, the continent hasalso seen purchasing centres and malls constructed in mostAfrican towns, some of which are usually South Africaninvestments (Miller, 2006). There is still huge possibility of all kinds of Southern region African businesses to increase within thecontinent, and there are rewards for all worried.

Currently the half a dozen primary sectors of the Southern region Africaneconomy: exploration, retail, development and production, financial services, telecommunications, and leisure and*Corresponding author. Email-based: [emailprotected]

one particular

African plan in this case refers to former chief executive Mbeki’ t vision of the African renaissance, and the institution of the Fresh Partnership pertaining to Africa’s Expansion (NEPAD).

travel and leisure, are in one way or another investing in thecontinent (Daniel et al., 2003). Furthermore, thecompletion of the SEACOM’s East African submarinecable as well as the up coming Western world African cable connection system thatwill provide dietary fibre optic connection from The african continent to the restof the world is going to open even more business opportunities in thecontinent. It really is, therefore , no surprise to see anincreasing number of South African full companiesexpanding into the rest of the region to seek growthand explore new strategic opportunities. The Shoprite Group functions its own stores in 15African countries outside South Africa, including Angola, Botswana, Ghana, Lesotho, Madagascar, Mauritius, Mozambique, Maltahohe, namibia, Nigeria, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe (Shoprite, 2008). Thegroup’s operations have been completely generally successful inmost of these countries and in some cases income hasexceeded their projections and objectives. Thisperformance provides triggered several growth andexpansion plans for the majority of of the countries listed above. For example, while using opening of one supermarket inAccra, Ghana (in November, 2007), the groupimmediately started checking out the possibility ofopening five more stores around the Accra area(Shoprite, 2008). This kind of report likewise indicates that theirDakora ou al.

Photography equipment operations have got produced higher turnover expansion

than their To the south African alternatives.

Nevertheless , this is not the case with their procedure in

India exactly where foreign price tag ownership is usually forbidden by simply

government regulations. Shoprite had to operate by

means of franchising in Mumbai (Shoprite, 2008).

Earnings do not complement individuals achieved in Africa

highlighting the mode of entry as a key factor inside the

successful achievement of retail internationalisation.

But, even in Africa, it includes not all been easy. Because of lack

of ideal acquisition targets and cha?non partners, and

presented the simple nature in the retail sector in most

African countries, they are appreciative to open their particular

retailers (Games, 2008). The Shoprite annual record

(Shoprite, 2008) signifies that they are presently facing

competition from other South Africa retailers whom are

also moving into Africa. By way of example Massmart, also

growing into The african continent, will give Shoprite a manage for its

money in marketplaces for hard goods. Also, as a

consequence with their go-it-alone method of

Africanisation, Shoprite often does not gather enough

market know-how and connections before going into and

establishing a foothold during these new markets, which in

itself becomes a problem (Games, 2008).

There are also information of supply issues haunting the

company in its Africa procedures. Nigeria is definitely reported to

include government-imposed transfer restrictions on some

products. This can be in a wager to protect the area economy and

suppliers. Miller (2008) points out which the issue

concerning community suppliers is politically debatable for

South Africa companies operating in foreign Photography equipment

countries. Although S. africa has relocated to be part of

the region and provides championed a great African schedule (as

noted at the start of this paper), there are issues that

this commercial activity may well become an additional form of

colonisation. Consequently, these companies have to

illustrate their support and involvement in local

advancement in those foreign countries or risk being

accused of “exporting Apartheid into Africa (Miller

2008). Of course , the circumstances of each and every country

might fluctuate: Miller found that the Shoprite Group moved into

Zambia under favourable conditions that did not strive

to safeguard local producers and suppliers.

Inspite of the increase in retail internationalisation in

The african continent led by the South Photography equipment retailers, tiny research

has been done in this area. This paper takes a look at based

on a study of annual reports and also other publicly obtainable

options; it looks for to develop a foundation to get more

detailed case study focus on the phenomenon. The daily news

discusses how the Shoprite Group’s growth into The african continent

has become achieved, and exactly how it anchored its position since the

largest meals retailer on the continent. Two propositions

concerning difficulties affecting your decision of access

function are established, based on the Shoprite examine. The

issues that notify these offrande are, however

restricted to the results of the Shoprite’s review, and

consequently , preclude additional issues that may be relevant to

749

the happening but not clear in this examine. The

propositions are further examined by looking in a range

of other cases of South Photography equipment retailers’ growth into

Africa.

GENERAL

PERSPECTIVE

INTERNATIONALISATION

ABOUT

RETAIL

Recently, the world of selling has seen a dramatic

increase in international actions by stores around the world (Park and Sternquist, 2008; Myers and Alexander

2007; Dawson and Mukoyama, 2006). The trend

of retail internationalisation has become a crucial

characteristic of global business. As buyer products and

services become global, and round the whole world

consumers’ styles of ingestion and behaviour

more and more become comparable, retailers happen to be prompted to

respond to this pattern. This ends in the introduction of

international (and in some cases global) retail businesses

(Federzoli, 2006).

As Jack port Shewmaker, movie director of Wal-Mart points out; “it

is totally clear the biggest opportunity facing retailers [today] is internationalisation (McGarriagle, 08: 12). In exploiting this kind of window of opportunity, the world has found

retail businesses grow into multinational companies

adding to economies over a worldwide basis. The

rising amounts of internationalisation among retail

businesses could be attributed to three factors: expansion in

size, expansion in technological sophistication as well as the need

to respond for the changing requirements and behaviors of

customers (Myers and Alexander, 2007).

However , selling is geographically tied, and

worldwide companies need to have a physical presence

in the foreign countries concerned in order to conduct

their business (Sternquist, 2007). According to Dawson

and Mukoyama (2006), the internationalisation of retailing

is evident in many ways which include: the sourcing of

products to get resale, the operation of stores in foreign

countries, the application of foreign time, the ownership of

foreign concepts and the utilization of foreign capital. There has

been a rise in all these elements in terms of volume level

and spatial reach, Dawson and Mukoyama indicate. This

increase in retail expansion provides continued over the

globe, characterised by large full chains, largely from

the most created countries, entering into less

developed types, and this features attracted some academic

attention.

However , many research in regards to retail

internationalisation has focused on the developed globe

with little attention being paid to producing economies

especially those in Africa. Zhang and Dodgson

(2007: 336) observe that most exploration in the field of

international business and entrepreneurship concentrates

on “early internationalisation of firms situated in developed countries, especially The european countries and Combined States. Where

Africa is studied, little attention is paid out to retailing, as

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Afr. T. Bus. Manage.

most earlier research has often focused on

manufacturing and pure assistance industries in spite of the

latest increase in price tag internationalisation (Park and

Sternquist, 2008).

METHOD

The review requires into consideration To the south African selling companies which have expanded their operations past their home region, the Southern African Expansion Community (SADC) in a significant way. Genuine service retailing is beyond the range of this paper. Shoprite is a largest meals retailer in Africa, plus the pioneering dealer to start a continent wide development

strategy. A review of Shoprite’s Africanisation process is carried out while using view of gaining a lot of understanding of the phenomenon. Consequently , the offrande and issues around the concern of technique are limited to what is clear in the Shoprite study. The importance of these sélections and the human relationships between them happen to be further evaluated by the study of different cases of purposively chosen South Africa corporations moving into Africa. Since the purpose is to understand the phenomenon below study, purposive sampling improves the potential of understanding

(Devers and Frankel, 2000). Since indicated previously, the study features largely been based on gross annual reports and other publicly obtainable sources, and, therefore , the review required a content analysis

approach. Because of ability to assess the effects of environmental variables like regulation, socio-economic issues, and placement characteristics such as market appeal, credibility and likability (Kolbe and Burnett, 1991) inside the internationalisation process, content research techniques was useful in this study.

A REVIEW

AFRICA

OF

SHOPRITE’S

EXPANSION

IN

The Shoprite Group of businesses came into existence

with the acquisition of a superstore chain inside the

European Cape, in 1979 (Shoprite, 2009a). This growth

strategy has extended and has helped the expansiondriven business to show the presence around the world, and the group now includes Shoprite, Checkers

Checkers Hyper, Usave, OK Home furniture, OK Property and

Home, OK Power Communicate and OKAY Franchise Department

(with a number of retailers and brands under it). The

national development and enlargement strategy of Shoprite, while

seen, has been through mergers and acquisitions

but it altered and expanded this strategy once moving

abroad.

It achieved international enlargement by beginning its own

stores inside the foreign countries in which it operates, in order that in 08, out of your total of 984 shops, 100 grocery stores

ended uphad been operated in 16 countries outside South Africa

(Shoprite, 2008). The organization claims that the

international stores operate with the same standards of

sophistication as in your home country, South Africa.

Therefore, Shoprite today confidently proclaims its name because

the greatest food merchant in The african continent. The enlargement into

African was obviously a bold decision that has continued to

influence the ongoing future of the Shoprite Group to the present

day time. However , this could not have recently been possible without

obvious vision, technique and the suitable choice of setting

of working. This points spotlight some of the crucial

factors that contributed to Shoprite’s success in Africa:

Suitability of business model

Most of Africa’s populated towns are residence to midsection to

high income earners whom yearn for quality of life, and

Shoprite’s provision of a world class purchasing

environment and a wide range of products by arguably

affordable prices fulfills their desires for a better existence. The

opening of shopping companies and department stores has been a

feature with the Shoprite business structure, as stated by

the Leader of the group, C H Wiese in their twelve-monthly

statement (Shoprite, 08: 8), “we have helped bring a designed

country’s shopping knowledge to huge numbers of people who

have never used trading with this nature. In

fact, this includes more than the activities of retailing; it happens to be development, as the glowing shopping stores and

malls have grown to be part of a brand new urban creation and

modernity (Miller, 2006).

Mode of working

Shoprite’s choice of mode for their expansion system

has largely been by opening its “own stores inside the

countries where this operates. This tactic allows the

company to have overall control over all its functions

both equally local and foreign, and managing all of them from its brain

office in Gabardine Town. Playground and Sternquist (2008) located

that retail firms embarking on global strategies

prefer starting branches or establishing wholly-owned

subsidiaries for their worldwide operations, even though

franchising has been widely used in this regard. This really is

for the reason that wholly-owned access mode provides for more

control and involvement in the operations with the new

establishment. Beginning their own retailers also offers

potentially increased returns when it comes to profit (Park and

Sternquist, 2008).

However , wholly-owned subsidiaries or personal stores happen to be

known as the most expensive setting of internationalisation

for any particular organization as it requires more resource

commitment, including managing time and finance

(Doole and Lowe, 2004). Doole and Lowe contend that

this mode is used when a full company is for certain that

its products and services can do well in the long-run, in a foreign industry of a see stable region, since it

allows the internationalising organization to have total

possession and the control necessary to meet its ideal

objectives. Whatever ever before the situation, the choice of

admittance mode is among the most critical and strategic

decisions the company has to make before attempting to

internationalise (Venter ou al., 2007).

Personal strength, jobs and training

Despite Shoprite’s approach of opening a unique stores

and searching centres, it also invested and continues to

Dakora et al.

invest in the human capital in the foreign countries where

it operates. The group employs a lot more than 8 000 local

people in its stores outside the house South Africa, a few of whom

have been conditioned to become managers (Shoprite, 2008).

Additional, local small-scale farmers happen to be being backed to

upgrade their particular production specifications so as to supply the

Shoprite stores. It has also been reported that the

Shoprite Zambian operation is already self-sufficient in

veggie supplies, thanks to the engagement with local

farmers.

Supply chain efficiency

Selling new foods in multiple countries through whollyowned stores could pose a logistical problem. But , as a result of Shoprite’s complex supply chain network

and strategically located distribution companies this has

been possible and it has been a success (Shoprite

2008). Another important component here is their very own ability to

develop the essential skills, backed with advanced

information systems, to enable them to resource and

deliver items to all their stores by anywhere in the

community, says their 2008 gross annual report. This kind of element

summarises the entire essence of retailing ” delivering

the right services to the right customers

at the right place, in the correct condition or form, and

certainly at the proper price. While indicated by Dawson and

Mukoyama (2006) the main function of retailers

is always to make a range of products accessible to consumers to get

potential purchase.

Information systems and technology

Info systems and technologies not merely support

supply string management, nevertheless also administration

operations. For the Shoprite Group to manage almost all its

stores and operations from one head office, it has to have

reliable data systems and technology in place.

They may have invested in one of the most sophisticated info

technology and systems available to the retail market

and employ skilled people to deal with them, according

towards the Chairman’s record (Shoprite, 2008). With this kind of

improvement in information technology, their systems

can easily place about 490 1000 orders per month to

reorder items automatically from other existing

suppliers, the report implies. In his report Whitey

Basson (Chief Executive Officer) indicates that their

investment in information technology and infrastructure

has superior efficiencies whatsoever levels of the organization

with no doubt the capability to handle increased supply

chain activity in an international context (Shoprite, 2008). CONVERSATION

They have come to light from your Shoprite assessment that the two

personal issues and company-level problems affect Southern region

751

African retailers inside their quest to tap into the Africa

marketplace in a gushing way. Within an interview together with the Classic

FM business programme upon 18 March 2009 (Shoprite

2009b), Basson explained:

South Africa has not woken up to the fact that

they are a part of that big global town, and right now there

are several laws that really must be changed to

make Africa traders work better with every single

additional, in and out, 2 weeks . hell of the job to truly

get through the bureaucracy and help to make trading

easier. So I feel very highly about it that they

ought to look at that and say listen, as SOCIAL FEAR become

part of the Africa continent and a leading function

participant, we should basically form some

committee¦that makes the trading easy; obtain

[taxes] structured properly¦, [so that] a 52 pick up

can and be removed within an hour going

from one boundary to the next and never stand and

watch for four or five days in between borders¦ I

think all of us [are] just lagging because process.

Moreover, in her exploration into the circumstances of Shoprite

employees in Lusaka (Zambia) and Maputo (Mozambique)

Miller (2006: 36) found that “across the categories of grow older, gender, skill and long term or everyday status, workers felt

misused and mistreated simply by Shoprite management.

Miller’s research reveals that personnel complain regarding

pay, working conditions, hours, and overtime spend. Due

to high costs of living, the salary earned could hardly

support their standard needs, although Shoprite’s pay

bettered the legislated minimum salary at the time.

In general, the expansion from the Shoprite Group into the

rest of Africa has shown that modality is important; and

the issue of method is much more than opening totally

possessed stores, franchising and others, as it also problems

the partnership with regional producers, suppliers and

workers and also other stakeholders. Talking with Fin24

(Shoprite, 2009c), Basson got this to say of going

into Africa:

We can double each of our African organization if we can easily

get rid of all the bureaucracy and all challenges of merely

receiving stores and merchandise in existence. So it’s

really even now very, incredibly tough and very little

help by anybody, always be they suppliers or

government from both sides to make the African

continent a global trading place like you include in

Europe or perhaps the Americas.

The review of the Shoprite history, and its African

expansion strategies, demonstrate that the method of entrance

in to African marketplaces is of ideal importance. Although it is apparent that there are still more options for

expansion into African countries, there are significant

issues, and these types of challenges revolve around the

choice of entry mode. Which means concept of method and

mode variations are important since businesses have to

752

Afr. J. Shuttle bus. Manage.

consider some important decisions regarding mode. These

observations from the Shoprite study suggest the

following offrande:

Idea #1: It can be difficult getting into African

market segments; there are significant mode differences which

present several challenges.

Proposition #2: Components of the modal issues and

the nature of the challenges contain:

a. Support for local economies, producers and suppliers

and labour is critical;

b. Efficient supply chain management, and good

information systems help;

c. Movement of goods around borders can cause logistical

problems;

d. Competition emerges as many South African retailers

expand in the continent;

e. Authorities interventions will be needed to open the

continent to get trade.

The mode is for that reason a mix of just how these issues

happen to be handled, and this is indicative of the mode choices.

Moreover, the challenges concerning support pertaining to local

producers and labour, and supply chain managing are

particularly significant. South Photography equipment retailers came

under scrutiny in recent years to get dumping To the south African

products in African marketplaces, little support for local labour and pushing neighborhood companies out of business (Games

2008); a problem Shoprite has to be working hard on

(Shoprite, 2008). As well, although most of the newly

economically stimulated populations of Africa wish to

spend their cash in retail center, there are those

those people who are driven being concerned about environment

modify because of the globalisation of the issues of

climate transform and the significance of carbon footprint

management in running a organization.

This kind of raises the importance of items range

management, like a consumers may well prefer regionally

developed organic products. Therefore , there might be a

need for the re-ranging of products of To the south African

retailers in their African operations.

The wider significance of the propositions established

and the interactions and interdependencies between

them can be investigated with a review of different South

African full businesses moving in the same direction.

ADDITIONAL SOUTH PHOTOGRAPHY EQUIPMENT RETAILERS INCREASING

INTO THE REST OF AFRICA

that the firm now runs 12 Video game stores in 10

sub-Saharan African countries outside South Africa

including: Botswana, Ghana, Malawi, Mauritius

Mozambique, Maltahohe, namibia, Nigeria, Tanzania, Uganda and

Zambia; most of the stores are believed to perform better (in

terms of sales) than their South African equivalent

(Massmart, 2008). Additional format shops are located

elsewhere. The report as well indicates which the company

buys by local suppliers and also transfer from diverse

countries including South Africa.

Based on the annual survey, the excellent

performance of stores in Africa caught management’s

attention, and “this motivated us to revise each of our earlier

policy to limit each of our African footprint to one store per

country (with exception of Botswana and Namibia). As being a

effect there are new stores below development to get

Malawi, Zambia, Bekwai, ghana, Nigeria, Angola, and others, while

reported.

Yet , in an interview with fin24 the Massmart CEO

Grant Pattison indicated just how difficult you should operate in African markets outside of South Africa, especially

when it comes to obtaining property (Massmart, 2009).

He explained “we could work on a real estate for five years and

explained how that may hamper their very own expansion procedure.

That being said, he likewise indicated that “the more difficult it is to operate, the more option there is for the good

operator in addition to the final analysis they do not consider it particularly challenging to operate in foreign African countries (Massmart, 2009).

Truworths

Truworths is among the leading Southern African clothes

retailers, selling multiple brands of can certainly, men’s

teenager’s and children’s styles and related products

(Truworth, 2008). Truworths is an investment possessing

company with subsidiaries. Like additional South African

stores, the group is increasing into the continent, and

currently operates 25 franchised stores in both international

Africa countries and the Middle East (Truworths

2009). Contrary to the Shoprite and Massmart Groups

however , Truworth’s strategy for expansion has been

through franchising. The group has a occurrence in the

following Photography equipment countries past the edges of To the south

Africa: Botswana, Ghana, Kenya, Lesotho and Tanzania

below its multiple brand labeling. However , information of how

well all those franchised stores perform are generally not indicated.

Massmart group

Woolworths

Massmart is a wholesaler and retailer of general

merchandise and other streams of goods. Since 1994 the

company features expanded it is business operation beyond

the boundaries of South Africa to touch markets inside the rest of

the continent. In its 2008 annual report, it is described

Woolworths, just like Truworths, is one of the major fashion

and accessories retailers in S. africa; the company

also functions a superstore chain and pharmacies. It

works nationwide and also offers operation

opportunities, both in the neighborhood market and foreign African

Dakora ou al.

countries (Woolworths, 2008). As reported, the company

operates franchise stores in foreign Africa countries

including Makalamabedi, botswana, Ghana, Kenya, Lesotho, Mauritius

Macia, mozambique, Namibia, Nigeria, Swaziland, Tanzania

Uganda, Zambia and Zimbabwe. The performance of the

franchised foreign businesses is, however , not mentioned

(Woolworths, 2009).

RETAIL MARKET CHANCES IN THE AFRICAN CONTINENT

Price tag opportunities in Africa will be extensive, for instance a

Photography equipment countries are experiencing good economic

growth and therefore are benefiting from personal reforms. The

“doing business record of the World Traditional bank (2008)

indicates an ever-increasing trend of countries implementing

reforms to facilitate cross-border trade globally, and

shows that Africa is at the forefront of this trend. The

statement observes that Ghana, Kenya, Mauritius, Rwanda

and Tanzania have all reformed recently, and that

African countries such as Makalamabedi, botswana, Mozambique and

Rwanda and Bekwai, ghana have been capable of create confident

and stable governments. The resulting boost inside their

economies has been observed, and the possibilities are

clearly obvious (Mahajan and Gunther, 2009).

And economic development, it is really worth noting that

the combined inhabitants of Africa countries is likewise

developing rapidly. With Africa even now showing the best birth charge, its populace is forecasted to reach two billion by simply

2050, despite typical life expectancy leftover low

(Venter ainsi que al., 2007). Within Photography equipment countries there is also a

developing highly-educated work force, that can make a

contribution to corporations expanding into the continent;

there is also a growing proportion of middle-income

earners who also seek to enjoy the services of those

firms.

In talking about the continent’s industry size, potential

and opportunities, Mahajan and Gunther (2009: 3) help to

put items in perspective:

The african continent has more than 900 , 000, 000 consumers.

Despite the problems, every day they must

consume. They need clean water. They need shelter

clothing, and medicine. They desire cell phones

bicycles, computers, automobiles, and education

for their kids. Businesses are previously seizing

these chances in building markets around

The african continent.

As we have noted, dominant among the businesses

requisitioning opportunities in Africa are South Photography equipment retailers, and this is evident in the rising departmental stores and South

Africa retail stores in cities over the Continent (Miller, 2006; Mahajan and Gunther, 2009). Additionally, the

increased communications connectivity and usage in

Photography equipment countries likewise opens up a lot of opportunities. The

information economic climate report acclaimed this technology

753

expansion as the cause of the good wave of innovation

that transformed the face of the global economic climate during the

th

last 1 / 4 of the twenty century (United Nations, 2007).

While using launch with the East Photography equipment Submarine Internet

cable, that links Eastern and Southern Africa

countries to the remaining portion of the world in cheaper and faster

ways, ICTs will continue to be a positive factor.

However , Mahajan and Gunther indicate that most

growing markets include serious issues that cannot be

ignored simply by businesses working within these people, and The african continent

has its own unique condition; this issue is discussed

under the following heading.

DIFFICULTIES

PROCESS

IN

THE

INTERNATIONALISATION

Infrastructure (including transport, electrical energy, water

sanitation, medicine, and technology) has always been in

the forefront of challenges experienced by businesses operating

in Africa, but these difficulties actually present

in order to businesses that can meet these people (Mahajan

and Gunther, 2009). The same, it is still difficult and

expensive to move items from one region to another once

you will find poor rail and highway networks (Economist

Magazine, 2008). This poses logistical difficulties pertaining to

stores who need to move perishable or fast-moving

consumer goods from warehouses to shops, in

geographically far-flung locations inside the continent, because

mentioned earlier in the discussion of Shoprite.

Additionally , cross-border trade is impacted by road

blocks, bureaucracy and slower custom clearances at most

borders. As explained in the interview with Fin24

(Massmart, 2009), the CEO of Massmart said inches[When] we

supply goods into Lagos, it might take doze weeks for the

normal water, [but it can take] 13 weeks to clear. Certainly, this precludes any consideration of the availability of fresh

products.

Conclusion

As foreign retailing becomes a reality in Africa, the

difficulties of the happening, coupled with the unique

Africa situation, want academic attention to help

demystify the procedure. South Africa retailers have

joined the country quite very carefully, and most will be

attaining growth, sometimes even more than within

their home procedures.

This kind of generally great

encounter merits more study so that it can be

understood and used to increase the benefits for all

especially the African buyer.

This kind of paper provides focused on the mode of internationalisation as an important concern that requirements the attention of retail managements considering getting into

Africa. For example , it truly is interesting that Shoprite and

general merchandise retailer, Massmart possess opened

754

Afr. T. Bus. Manage.

their own shops, whereas clothes retailers, Truworths

and Woolworths function via franchising. As a result

while Shoprite and Massmart have complete ownership and

control over their operations in foreign African countries

they nevertheless need to shoulder the challenges in

these markets since discussed. In the case of their

franchised alternatives, this has been averted, at the

cost of title and some control. It is currently evident

that there are various variations upon these straightforward themes

that all need to be studied and understood.

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