The international expansion of Slovenian retailers : the case of Era's entry to the Kosovo market
Vida, Irena ; Komac, Jožica
Era d.d, a Slovenian retail company, entered the Kosovo market in December 2005 by opening the first hypermarket center in the region. Due to market conditions and novelty of the retail format Era ...faces several challenges. The aim of this research is to offer an assessment of Era's future prospects in this market by focusing on the analysis of Eraćs existing location and by studying consumer purchasing patterns and their responses to various retail formats. Research methods utiliyed in this study include a systematic analysis of the literature and secondary data sources as well as analysis of primary data obtained from the company management and Kosovar consumers. Kosovo is without a doubt a unique and challenging market. Not only is the status of the region not yet finalized, it is also in the process of recovering from the war conflict in late 1990s. The retail market in Pristina can be characterized as immature, although the development is relatively rapid. Our empirical research reveals that Era's current hypermarket location can be evaluated favorably. While the purchasing power of the population is fairly low based on the official statistics, our analyses of consumer surveys show major discrepancies between official income levels and the real consumer spending. Findings of our consumer surveys uncover unique purchasing patterns and retail store preferences that retailers need to consider when implementing their retailing strategy in this market.
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