Sample Thesis Paper
The US food retail industry covers packaged and unpackaged food products. These also include beverages of both alcoholic and non-alcoholic nature. In 2008, the US food retail industry reported revenues amounting to over $824,400 million which was interpreted to signify a growth rate of 5.8% from 2004 to 2008. The hypermarket has become the leading store format in the US with sales from hypermarkets alone amounting over $659,800 million out of the industry’s total revenue. However, the industry’s compound annual growth rate is expected to observe a deceleration with the CAGR falling to 2.7%.
“The US provides great facility in conducting transactions related to market expansion through acquisitions and incorporation of subsidiaries for export. There is no general system of licensing or regulating foreign investment or acquisitions” (Kumar and Waheed 2007).
The US provides expanding businesses with highly skilled labor and well developed highly sophisticated financial markets. In addition, the country is technologically advanced and factors of production do not experience inconsistency. Basic infrastructure that is crucial for expanding businesses, such as transportation and communication, experience no inconsistencies. However, the specialty of the labor is found to be in proportion to the cost of the labor (Kumar and Waheed 2007). Businesses expanding into the US find that technological development can allow cost reduction and excellent service quality can ensure a strong position in the market.