1. Customers MSF W M Agents or Brokers MMMM W RRRR R W M Internet, mail order, interactive TV Door to door House party Consignment to part-time salespersons Manufacturer-owned stores M=Manufacturer W=Wholesaler MSF=Manufacturer’s sales force R=Retailer Marketing Channel Alternatives: Consumer Products

2. CompanyCountryFormatsSales 1.Wal-Mart USA Discount store, Wholesale club $156,250 2.Carrefour France Hypermarket 55,302 3.Metro Germany Diversified 46,633 4.Kroger USA Supermarket 45,352 5.Home Depot USA Home Improvement 38,434 6.Albertson’s USA Supermarket 37,478 7.Sears Roebuck USA Dept.store/General merchandise 36,728 8.Rewe Gruppe Germany Diversified 36,561 9.Kmart USA Disct.store/Specialty 35,925 10.Ahold Netherlands Supermarket/Hypermarket 35,775 11.ITM Enterprises France Diversified 35,218 12.Target USA Discount/Dept.store 33,212 13.Edeka Gruppe Germany Diversified 31,788 14.Aldi Gruppe Germany Food/Discount 31,570 15.J.C.Penney USA Dept.store/Drug store 31,391 16.Tesco UK Supermarket/Hypermkt. 30,401 17.Tengelmann Gruppe Germany Diversified 29,501 18.Safeway USA Supermarket 28,860 19.Costco USA Food/General merchandise 26,976 Top 25 Global Retailers (1999 sales; $ millions)

3. Benetton, IKEA (A) Toys “R” Us (C) Carrefour (D) Marks & Spencer (B) Fewer Categories Many Categories Own-label focus Manufacturer brands focus

4. Organic (D) Joint Venture (B) Franchise (C) Chain Acquisition (A) Culturally Close Difficult to enter Culturally Distant Easy to enter Global Retailing Market Entry Strategy Framework