Future Research

Chapter 17 - The Internationalization Efforts of Small Internet Retailers
Managing IT in Government, Business & Communities
by Gerry Gingrich (ed)
Idea Group Publishing 2003

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Certain fundamentals of retailing are reinforced when e-tailers adopt a global strategy they must focus on providing superior customer service and satisfaction and on obtaining more knowledge of the customer. The global e-tailer strives to entice global customers with quick fulfillment and a large product range at reasonable prices. To do so, the e-tailer's supply chain network must be prepared and capable before the internationalization process can be successful.

While the case companies are only a year old, and have not completely embraced global strategies, with only a small percentage of customers being from outside the SE Asian region, future research into similar and more established companies may unveil more issues to global e-tailing. Furthermore, it would be of great value to study the changes in strategies as these companies gain experience with global e-tail, depicting the evolutionary process of global e-tail strategy formulation and implementation.

However, of particular significance is the issue of adopting a physical infrastructure, and how to implement it. While much research has been done comparing the benefits and drawbacks of the click-and-mortar e-commerce strategy with that of a pure play model, the factors identified may not be suitable in the context of a global e-tail strategy. The innovative and effective use of physical infrastructure in a global setting, necessarily coupled with synergistic Web site strategies, may distinguish the successful e-tailer from the mediocre.

Furthermore, is the success of physical retail location largely dependent on the capabilities of the e-tailer's current supply chain and logistics network? Further research may identify the relevant factors in the relationship, possibly including the capabilities of suppliers and couriers, systems integration, and fulfillment cycle time.

The Internet has undoubtedly affected the process of retail internationalization as well. While retail internationalization could be charted along from a number of perspectives, empirical research has not addressed the changes caused by the use of the Internet as a driver and motivating factor in internationalization.

In managing the Web-store infrastructures, e-tailers should take into account the greater need for flexibility, as technologies to support the use of multiple languages and currencies are developed, Customer Relationship Management (CRM) applications are enhanced, and supply chains and logistics networks integrate. At the same time, e-tailers also need to differentiate themselves, while finding appropriate access to each individual foreign market, managing cannibalism among their channels, ensuring political, legal, and cultural conflicts do not ensue.

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