If you can account for your chosen retailer’s planned international growth by applying PLIN theory, can you see limitations implied by this theory for continued international growth?

Retail and Shopper Marketing Assignment Guideline
For a non-domestic retailer operating in a country of your choice analyse each element of the retail mix. The analysis should include:
Merchandise range and assortment
Retail communications
Store layout, design and visual merchandising
Customer service and facilitating services
Formats and locations
Pricing strategy and tactics 40%
For the same non domestic retailer, assess the extent to which the retail mix provides a basis for sustainable competitive advantage 30%
For the same non domestic retailer, evaluate the challenges to continued international growth that will be faced by your chosen retailer. Consider, for example, PEST factors, the competitive context, growth objectives, growth strategy, market selection and entry methods, emerging retailing trends. 30%

It is important to understand in great depth how your chosen retailer implements its retail mix in respect of each element described above. This understanding can only de developed from detailed observations undertaken during store visits and through analysis of in-store and printed/broadcast marketing communications.
It is important, however, that your work is not merely a description of each element of the retail mix, but rather seeks to analyse the contribution of each element to sustainable competitive advantage.
According to Crawford and Mathews (2001) retailers compete for target customers on five major factors:

the price for the benefits offered
service level
product selection (merchandise line width and depth)
location
customer experience (positive feelings and behaviours generated in the purchase process). They must dominate on one key factor and differentiate themselves on at least one secondary factor within their primary competitive set.
Levy and Weitz (2007) describe sustainable competitive advantage as “an advantage over the competition that is not easily copied and thus can be maintained over a long period of time.”
According to Johnson and Scholes (2008) competitive advantage is built on core competences which are the skills and abilities by which resources are deployed through an organisation’s activities and processes in ways that are difficult for competitors to imitate.
Resource-Advantage Theory (Hunt and Morgan 1996) argues that firms gain competitive advantage by offering superior value to customers and/or having lower operating costs. Advantage is based on tangible and/or intangible resources. Because retail demand is dynamic in order to sustain competitive advantage resources must be applied to create changing retail mixes to accommodate changing consumer preferences
Porter (1985) proposed three generic strategies by which a business might achieve competitive advantage: overall cost leadership, differentiation and focus.
Bowman (1995) proposed “market facing” generic strategies based on price and perceived benefits: no frills, low price, hybrid, differentiation (with and without price premium) and focused differentiation.
Applied to retailing the strategies represent the different retail value equations of different segments of shoppers. For example, “no frills” customers are primarily concerned with price and emphasise functionality over factors such as customer service and retail atmospherics.
For retailers pursuing price based strategies competitive advantage might be sustained by developing capabilities that deliver cost advantages to support price advantages over the competition. Differentiation strategies on the other hand might create sustainable advantage through difficulties of imitation or through intangible assets such as brand, image or reputation (Johnson, Scholes and Whittington, 2008).
Ghosh (1994) proposes that retailers must give consumers superior reasons to visit their stores, which means that the retail mix must be analysed in a competitive context.
Walters and Knee (1989) propose that “retail offer advantage” is built on advantages in merchandise, trading formats, customer communication and customer service.
According to Bridson and Evans (2004) marketing and the resource based view of the firm are combined in the brand orientation model described by Urde (1999) as “an approach in which the processes of the organisation revolve around the creation, development and protection of brand identity in an ongoing interaction with target customers with the aim of achieving lasting competitive advantages in the form of brands”.
Levy and Weitz (2007) propose a number of bases for sustainability of advantage:
customer loyalty (brand image with an emotional connection with customers)
location (convenient locations)
HRM (committed knowledgeable employees)
distribution and information systems (systems shared with suppliers)
unique merchandise (private label/unique brands)
customer service (knowledgeable and helpful sales people, facilitating services, customer charter).
Your retailer is an international retailer and has already addressed the fundamental strategic question of whether to replicate their retail operations globally with only modest adaptations or to operate distinct operations in different markets and embrace local needs to a significant degree. Your discussion will recognise different theoretical approaches to retail internationalisation. For example, Simpson and Thorpe (1995) proposed the “Product, Lifestyle, Image and Niche” (PLIN) model suggesting that these elements must exist simultaneously to create a competitive advantage in a foreign marketplace (Alexander and Doherty, 2009). Sternquist’s SIRE model (1997) proposes that competitive advantage in a foreign market must be based on “ownership advantages” such as unique products or superior reputation and “transaction advantages” that come about because of “the way things are done”.
You have been asked to evaluate challenges facing the retailer in its continued international growth. Your answer to this part involves engagement with the world of retailing and an understanding of how the world of retailing is being shaped by PEST and competitive forces. There is no “book” based answer to this question but rather your own critical examination of current trends in retailing. Your analysis might include though not be restricted to the following: multi/omni-channel developments; PEST factors; ownership structures; the competitive context; market entry decisions and strategies; operational/supply chain issues. It is likely that retail internationalisation theories will be incorporated in this part of the discussion. If you can account for your chosen retailer’s planned international growth by applying PLIN theory, can you see limitations implied by this theory for continued international growth?