engleski

Contingency of Business Model and Retail Internationalization the Evidence from Croatian Drugstore Market

Scientific studies and business practice show that different types of retailers internationalize in different ways. In literature several classification schemes of international retailers were proposed in attempt to outline retail internationalization process more precisely. However, majority of authors based their taxonomy on merchandise category or store format, considering thus the retail as uniform business model comprised of purchasing multi-brand products from manufacturer, distributor or wholesaler and direct selling to the consumers. With fast changes in consumer trends, economic environment and competition, many market players changed their ways to adopt. Most evident business model innovations in retail are of retailers integrating backwards into manufacturing and of manufacturers integrating forward into retailing. Building upon the recent taxonomy that accounts for various business models within retail, we study drugstore internationalization at the Croatian market. Findings show that drugstores tend to follow internationalization pattern set by traditional retailers so it can be argued that business model dictates retail internationalization process.

business model, taxonomy of international retailers, retail internationalization, drugstores, Croatia

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