Abstract. 3
Background 3
Methodology 4
Results 5
Discussion 7
Conclusion. 7
Recommendations. 8
Reference List .. 9
Abstract
The paper shall present a comprehensive information on how the impact of globalization has influenced the retail businesses of Oxford City. In this study, the retail sector of Oxford is made up of Gloucester Green Market, Covered market and High Street market which ensure that the supply chain is effectively met within the City. However, this study shall mostly dwell on the food service markets where globalization is believed to have had a greater significance in Oxford. The paper shall also examine the retail businesses in Oxford so as to ascertain how globalization has altered the way of doing business in the retail sector. The impact of globalization does not create significance without challenges being presented to the players in the retail industry. Thus, the study shall point out the challenges as well as some of the notable benefits that globalization has accrued to retail businesses in the City of Oxford.
Background
The recent increase in globalization all over the world has been coupled with greater impacts which have changed the way of business operations in the retail industry. Consequently, there has been an improvement in the levels of diversification amongst retail traders. The impact of globalization has mainly been accelerated by the advanced information technology which has been adopted by a majority of businesses (Doering, 2002, pg 68). In the grocery markets which are involved in food service there has been a soaring pressure for retailers to embrace intensive production through the support of international suppliers. This has been done to take advantage of the emerging markets which are as a result of globalization which has made it possible for people to access information about various food products around the world. There has been a need for the retail traders to perform a restructuring process of their processes and activities so as to accommodate the new demands presented by the impact of globalization.
It has also been revealed that global retailers enjoy the economies of scale, reduced costs which yields increased profits. However, global retailers in the grocery market are also viewed to be very competitive due to the efficiency accrued by the benefits of globalization (Swinnen, 2007). Hence, globalization has improved the productivity and performance of these retail businesses and as a result there has been an increase in employment levels. The emergence of new markets and the issue of diversification in food retailers has made it easy for them to make price mark ups so as to accrue maximum profitability as well as meeting their increased costs. Globalization has thus brought changes to the supply chain of distribution but this has had a positive result of improving productivity hence ensuring that there is sufficient supply to match the expanding demand caused by global business.
Methodology
In this study the methodology used to study the retail business of Oxford was the observation method.. This involved a critical observation of the three retail markets which include; Gloucester Green market, covered market and High Street market. Hence, in this study the three markets were used to prove the hypothesis that the impact of globalization has been significant in retail businesses of Oxford City. Data was collected through the process of observation and the information required was recorded for further study. The collection of data was focused on acquiring information that was relevant to this study. The observation process was meant to collect information about the retail markets with regards to various components of the business. These components include; type of products, suppliers, demographic trends of clients, bargaining power of clients, external environmental factors, the relationship with clients and franchising. These components of these retail markets would be clearly revealed after the observation process.
Results
The results obtained after the observation process regarding the components of these retail markets presented some notable changes in the retail market. To begin with, the Gloucester Green market provides an open air market once every week where it offers fresh vegetables and fruits. The Covered market on the other hand, also sells fruits and vegetables as well as show and everything that a consumer would need. The High Street market offers products such as clothes, music stores, phones, restaurants and night fast food served by Nissan vans. The supply of goods to these markets comes from different sources. For instance, Gloucester Green Market receives products from Green Market suppliers whereas the covered market is supplied by different traders and the High street market receives supplies from franchises. Only two markets in the City have fair trade goods in their stores, that is, Gloucester Green market which offers books and the covered market which offers shoes. The high street market does not offer fair trade goods. These three retail markets in Oxford exhibit different demographic trends of their customers.
The Gloucester Green market is frequented by adult women aged between 21 years to 60 years. The covered market has a higher number of women in the client base. The high street market is characterized by both males and females but more likely teenagers than adults. The Gloucester Green market offers some bargaining power to the customers whereas the covered and high street markets do not offer bargaining power to their employees. The competitive strategies adopted by these markets also differ in some way. The Gloucester Green market competes using price bargaining strategies. The covered market offers hygienic and organic products as a competitive strategy against competitors. The competitive edge of the high street markets is achieved by branding of their products. The three markets exhibit different business environments for their clients. The Gloucester Green market is characterized by a crowded environment but it is friendly and nice to shop. The covered market is represented by a good environment which is nice to shop.
The high street market is nice to shop but most of the time it is very busy and has indoor stores. The contact of shoppers with the sales staff in these markets varies with the type of market. The Gloucester Green market is marked by a face to face contact between the clients and the salesperson. In the covered market and the high street market, the contact of customer and sales staff is difficult since customers pick products on the aisle. The Gloucester Green market receives some of its products directly from the producers. The covered market is partly supplied by direct products from the producers. However, the high street market is not supplied with products directly from the producers. All these three retail markets are actively competing with the big five supermarkets in the City. The Gloucester Green market does not have any franchise in the business however the covered market has only clothes as the franchises available. The high street market is characterized by franchises only which range from clothes, fast food restaurants and coffee shops. In the Gloucester Green market there are no signs of a run-down high street. The covered market has charity shops which act as a sign of a run-down high street. The high street market is characterized by a variety of run-down high streets which include; discount shops and charity shops.
Discussion
The results presented in the study indicate that the impacts of globalization have had tremendous significance in the retail businesses of the City of Oxford. To begin with, there has been an increase in the number of products being offered to customers. For instance, the high street market offers a variety of products while the covered market offers all products necessary for clients. The retail markets are supplied by other traders whereas those in the high street market have franchise products. The Gloucester Green market is supplied with vegetables and fruits from the Green Market. However, this shows that the supply chain of distribution is well developed owing to the impacts of globalization.
Most of the retail markets also offer fair trade products except from the retail market in the high street. The Gloucester and covered market are mostly visited by women due to the fact that they sell food products such as vegetables which might be the need of many women. However, the high street market is mostly populated by young adults and teenagers. The level of competition in the retail market is quite high and from the results it can be seen that all the markets have their unique strategies of countering competition. As a result, these retail markets have become very competitive and now they are able to compete with the big five supermarkets. The majority of the retail market in the City of Oxford has franchises except the Gloucester Green market. Another emerging issue is that most retail markets in Oxford do not allow bargaining by customers except the Gloucester green market.
Conclusion
It is true that the impacts of globalization have been significant in the retail sector of Oxford City. This is due to the benefits that have been able to be accrued by the businesses in the retail sector. From the study, it is seen that businesses which have embraced globalization have been able to realize growth in the areas of profitability, employment and the client base of the businesses (Umemura & Fujioka, 2013, pg 132). Thus, it would be prudent for businesses in the retail sector to embrace the concept of globalization in their business operations so as to accrue these benefits. However, globalization also calls for an adoption of advanced technology by the business so as to be able to cope with the increasing global demands of the business.
Recommendations
This study illustrates that globalization is the way to go for a majority of retail businesses in Oxford City. This is due to the significance that it accrues to the business. However, businesses are urged to ensure that they incorporate sufficient information technology to back up their business in the global markets. Retail stores must be able to take advantage of the new markets created by globalization so as to enhance their productivity.
Reference List
Doering, D. S. 2002. Tomorrow's markets: Global trends and their implications for business. DC: World Resources Institute.
Dul, J., & Hak, T. 2008. Case study methodology in business research. Amsterdam: Butterworth-Heinemann/Elsevier.
Swinnen, J. F. M. 2007. Global supply chains, standards and the poor: How globalization of food systems and standards affects rural development and poverty. UK: CABI.
Umemura, M., & Fujioka, R. 2013. Comparative responses to globalization: British and Japanese enterprises. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan.
