excessively high rent or real estate costs. or other factors. In quadAnts Cand D. any barriers that exist are relatively indicated by the matrix are easy to overcome. The four entry strategies ganic, franchise, chain acquisition. and joint ventures and licensing organic open a store on a green growth occurs when a company uses its own resources to a field from another company. In 1997, for one or more existing retail facilities ample. M&S announced plans to expand from one store to four in German set up the first Virgin of three stores operated by Cramer and Meerman. When Richard Bran of pounds in a spectacular retail space on the Megastore in Paris. he did so by investing million Champs-Elysées. From the te retail environments of Germany perspectives of M&S and Virgin, and France of this strategy hinges on the are both culturally close and easy to enter The success vailability of company resource stain the high cost of the initial investment. sing. shown in Figure 124. the appropriate entry strategy when quadrant Cof is sing is a contractual relationship between retailing structures. As defined in Chapter 9, franch two companies. The parent company-franchisor authorizes a franchisee to operate a business developed by the franchisor in return for a fee and adherence to franchise-wide policies and prac ces. The key to a S ranchise operation is the ability to transfer compan know-how to iew markets. Benetton. IKEA nd other focused, private-label retailers often use franchising as a market-entry strategy in combination with wholly owned stores that represent organic growth IKEA has more than 100 company-owned stores across Europe and the United States: its stores in the Middle East and Hong Kong are franchise operation In global retailing. acquisition is a market-entry strategy that entails purchasing a company with multiple retail locations in a foreign country. This strategy can provide the buyer with quick growth as well as access to existing brand suppliers. distributors. and customers. For example, tiirst entered the Japanee when W t in 2002 t did so by acquiring a 6.1 percent stake in the ail chain 2007 Walmart uppe its stake to 95.1 percent: the following year, Seiyu 414. stores became a wholly owned subsidiary. Now Walmart is seeking to expand by making additional acquisitions. As Walmart Asia CEO Scott Price explained, we see e as being the next level of being able to change the value proposition for Japanese custom er: "We do not want to build more retail in Japan. ers." Organic growth is not an option. ho The last thing Japan needs is more retail space," Price said Joint ventures and licensing were examined in detail in Chapter 9. Globa retailers fre these strategies to limit their risk when targeting unfamiliar, difficult-to-enter quently use markes. Barnes New Yok icensed is name to Barneys Japan fr a perod of 10 yeas SaksFifth Avenue has licensed in Midle East In some counties, regulations mandate the ue of jontventure. For eampe,prorto 2005. China had reguatons that required foreign retailers entering the market to have local partners. Chinese authorities