Going for growth
A Dixons Group case study

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Page 4: Benefits of entering new markets

Dixons Group 6 Image 1A key advantage in operating across markets is to obtain expertise and apply new and best business practices across markets, whilst maintaining and recognising the cultural differences. By learning from best practice - sharing ideas from different markets and business cultures, synergies will be brought to the Dixons Group, which should benefit staff, customers and shareholders.

The Group also recognises that as suppliers are consolidating worldwide a benefit of its expansion will enable it to strengthen its buying power on which its ability to sell high quality products at competitive prices largely depends. It may also achieve economies of scale. Investing in more than one market, Dixons not only has a portfolio of products, but also a portfolio of markets, which spreads the risk of, for example, a recession in any one country at any particular time.

Information relating to corporate culture, customer and employee expectations and the best approaches to advertising and marketing are valuable to any enterprise. Customers throughout Europe have similar, but not identical tastes, for reasons including domestic and external culture, environment and habit. By examining the characteristics of particular markets from the inside, the Group is far better placed to tailor its international marketing strategies.

Dixons Group | Going for growth