Question

The late Michael O'Connor, former president of the Super Market Institute, suggested that the failure of many U.S. retailers to succeed in international markets was due to:

1) Retailers from larger countries having operated in successful economies and therefore tending to be less involved in the small details when going international.
2) Customers from other countries not understanding how retailers should operate.
3) The competitive intensity in international markets being too high.
4) Increased distribution costs making U.S. retailers uncompetitive when they expanded internationally.
5) Executives being sure of themselves, and not seeking more counsel or listening to more opinions before developing strategic plans.

Answer 1

Many U.S. retailers struggle internationally due to neglecting details, misconceptions by international customers, high competition, higher distribution costs, and executive overconfidence. Globalization and technology have changed the economic landscape, making adaptation crucial for business success.

Step-by-step explanation:

The late Michael O'Connor, former president of the Super Market Institute, suggested that the failure of many U.S. retailers to succeed in international markets can be attributed to several factors. These include retailers from larger countries being used to operating in successful economies and tending to overlook the small details when expanding internationally, as well as a lack of understanding from international customers on how these retailers should operate. Other reasons might involve the competitive intensity in international markets and increased distribution costs rendering U.S. companies uncompetitive abroad. Lastly, executives might be too confident in their own strategies without seeking enough counsel or opinions before making strategic plans.

These difficulties are a part of broader trends affecting modern economies, where globalization and advances in technology have increased competition and shifted how markets are defined. A failure to adapt to these changes, understand different market demands, and actively participate in the global economy can impact a business's success significantly, as evidenced by the success stories of countries that have embraced international trade and those that haven't.