"Investigating the Factors That Influence Growth Strategies in the Retail Market within the UK (Dissertation Sample)

“INVESTIGATING THE FACTORS THAT INFLUENCE GROWTH STRATEGIES IN THE RETAIL MARKET WITHIN THE UK” SEPTEMBER, 2024 Presented as part of the requirement of the Degree of MSc International Business, Canterbury, Christ Church University DECLARATION This dissertation is the product of my own work and has not been presented for any other award. I declare also the dissertation is available for photocopying, reference purpose and inter-library loan. -Hafiza Adeela ABSTRACT This dissertation investigates the growth strategies employed by small and medium-sized enterprises (SMEs) in the UK retail sector, a critical area given the rapidly changing landscape shaped by technological advancements, shifts in consumer behaviour, and significant economic events such as Brexit and the COVID-19 pandemic. The research aims to identify the factors that influence these growth strategies and to provide insights that can support the sustainability and competitive advantage of retail SMEs in a market dominated by larger corporations and online retail giants. The study adopts a qualitative research design, utilizing secondary data analysis to explore existing literature, government reports, and industry publications. The methodology includes thematic analysis, which allows for the identification of key themes such as market penetration, technological integration, and regulatory challenges. The research is grounded in theoretical frameworks including Ansoff’s Growth Matrix, Porter’s Competitive Strategy, and the Resource-Based View, providing a robust foundation for the analysis. Key findings reveal that while technological advancements offer significant opportunities for growth, they also present challenges for SMEs, particularly in terms of investment and adaptation. Market competition, driven by both local and international players, requires SMEs to adopt innovative strategies to differentiate themselves. Furthermore, regulatory changes, especially post-Brexit, have added layers of complexity to the business environment, necessitating greater agility and resilience among retail SMEs. The dissertation concludes with practical recommendations for retail SMEs, emphasizing the need for strategic investment in technology, market research, and regulatory compliance. Policy recommendations are also provided, suggesting that government support is crucial in helping SMEs navigate these challenges and capitalize on growth opportunities. The study contributes to the academic literature on SME growth strategies and offers a foundation for future research in this area. Table of Contents TOC \o "1-3" \h \z \u CHAPTER 1: INTRODUCTION PAGEREF _Toc176135582 \h 71.1 Background PAGEREF _Toc176135583 \h 71.2 Importance of the Study PAGEREF _Toc176135584 \h 71.3 Research Gap PAGEREF _Toc176135585 \h 71.4 Research Problem PAGEREF _Toc176135586 \h 81.5 Research Question PAGEREF _Toc176135587 \h 81.6 Research Objectives PAGEREF _Toc176135588 \h 81.7 Theoretical lens PAGEREF _Toc176135589 \h 9CHAPTER 2: LITERATURE REVIEW PAGEREF _Toc176135590 \h 102.1 Growth Strategies: Definition, Value, and Challenges PAGEREF _Toc176135591 \h 102.2 Retail Market: Definition, Value, Key Features, and Challenges PAGEREF _Toc176135592 \h 112.3 Theoretical Frameworks: Resource-Based View and Competitive Strategy PAGEREF _Toc176135593 \h 122.4 Factors Affecting Growth Strategies in the Retail Market PAGEREF _Toc176135594 \h 14CHAPTER 3: METHODOLOGY PAGEREF _Toc176135595 \h 173.1 Research Design PAGEREF _Toc176135596 \h 173.2 Data Collection Process PAGEREF _Toc176135597 \h 183.2.1 Sources of Secondary Data PAGEREF _Toc176135598 \h 183.3 Data Analysis PAGEREF _Toc176135599 \h 203.4 Ethical Considerations PAGEREF _Toc176135600 \h 223.5 Limitations PAGEREF _Toc176135601 \h 233.6 Conclusion PAGEREF _Toc176135602 \h 24CHAPTER 4: DATA ANALYSIS PAGEREF _Toc176135603 \h 264.1 Summarizing and Describing the Data/Articles Used for Analysis PAGEREF _Toc176135604 \h 264.2 Extracting Points of Interest from the Data/Articles Using the Analysis Approach PAGEREF _Toc176135605 \h 264.3 Presentation of the Analysis PAGEREF _Toc176135606 \h 27CHAPTER 5: FINDINGS PAGEREF _Toc176135607 \h 295.1 Introduction PAGEREF _Toc176135608 \h 295.2 Data Organization and Thematic Analysis PAGEREF _Toc176135609 \h 295.2.1 Technological Advancements PAGEREF _Toc176135610 \h 295.2.2 Market Competition PAGEREF _Toc176135611 \h 305.2.3 Consumer Behaviour PAGEREF _Toc176135612 \h 315.2.4 Resource Allocation PAGEREF _Toc176135613 \h 335.3 Discussion of Key Findings PAGEREF _Toc176135614 \h 345.4 Conclusion PAGEREF _Toc176135615 \h 34CHAPTER 6: DISCUSSION PAGEREF _Toc176135616 \h 366.1 Presentation and Discussion of Findings PAGEREF _Toc176135617 \h 366.2 Theoretical Contributions PAGEREF _Toc176135618 \h 376.3 Practical Implications PAGEREF _Toc176135619 \h 386.4 Conclusion PAGEREF _Toc176135620 \h 38CHAPTER 7: CONCLUSIONS AND RECOMMENDATIONS PAGEREF _Toc176135621 \h 397.1 Summary of Key Literature, Methodology, Analysis, and Findings PAGEREF _Toc176135622 \h 397.2 Conclusion PAGEREF _Toc176135623 \h 407.3 Practical Recommendations PAGEREF _Toc176135624 \h 417.4 Policy Recommendations PAGEREF _Toc176135625 \h 427.5 Limitations of the Research PAGEREF _Toc176135626 \h 427.6 Future Research Directions PAGEREF _Toc176135627 \h 437.7 Final Thoughts PAGEREF _Toc176135628 \h 43REFERENCES PAGEREF _Toc176135629 \h 44 LIST OF TABLES TOC \h \z \c "Table" Table 1: Key Growth Strategies for Retail SMEs PAGEREF _Toc175265723 \h 14 Table 2: Summary of Thematic Analysis PAGEREF _Toc175265724 \h 23 Table 3: Impact of Technological Integration on SME Growth Strategies PAGEREF _Toc175265725 \h 28 Table 4: Competitive Strategies Adopted by UK Retail SMEs PAGEREF _Toc175265726 \h 31 Table 5: Resource Allocation Challenges Faced by UK Retail SMEs PAGEREF _Toc175265727 \h 33 LIST OF FIGURES TOC \h \z \c "Figure" Figure 1: Research Flowchart PAGEREF _Toc175266477 \h 18 Figure 2:UK Retail Report, E-Commerce Trends, and Online Shopping (Statistics,2023) PAGEREF _Toc175266478 \h 29 Figure 3: Consumer Preferences in the UK Retail Market (Allen,2021) PAGEREF _Toc175266479 \h 31 CHAPTER 1: INTRODUCTION 1.1 Background The UK retail market is a critical component of the national economy, contributing significantly to employment, innovation, and consumer satisfaction. As of 2023, this sector has undergone substantial transformations driven by technological advancements, evolving consumer behaviours, and heightened competition. These dynamics necessitate that retail businesses, particularly small and medium-sized enterprises (SMEs), continuously adapt their growth strategies to maintain competitiveness and achieve sustainable growth. The primary focus of this dissertation is to investigate the factors influencing growth strategies within the UK retail market. By comprehensively understanding these factors, businesses can develop more effective strategies that align with the changing market conditions and consumer preferences. 1.2 Importance of the Study This study is particularly significant as it aims to provide actionable insights into the growth strategies of retail SMEs in the UK. Retail SMEs play a vital role in the UK's economic landscape, accounting for a considerable portion of employment and gross domestic product (GDP) (Clark, 2023). Despite their importance, these enterprises often face unique challenges that necessitate tailored growth strategies. For instance, limited access to financial resources, intense competition from larger retailers, and rapid technological changes are some of the challenges that require SMEs to adopt innovative and adaptable strategies. By exploring these issues, this research aims to assist policymakers, business owners, and academics in developing supportive policies and strategies that enhance the competitiveness and sustainability of retail SMEs. Understanding the impacts of technological advancements and market trends, for instance, can significantly influence the formulation of effective growth strategies (Robertson et al., 2021). 1.3 Research Gap Despite the extensive literature on SMEs and their economic contributions, there is a noticeable gap in understanding the specific factors that influence growth strategies in the UK retail sector. Much of the existing research tends to generalize growth strategies without delving into the distinct challenges and opportunities faced by retail SMEs. This research addresses this gap by providing a detailed analysis of the factors that drive growth strategies in the UK retail market, thus contributing to the existing body of knowledge (Južnik Rotar et al., 2019). The unique challenges faced by retail SMEs, such as navigating regulatory landscapes, accessing new markets, and managing technological integration, require a more nuanced approach than what is typically covered in the literature. 1.4 Research Problem The primary research problem tackled in this study is the lack of a comprehensive understanding of the factors that influence the growth strategies of retail SMEs in the UK. Retail SMEs often face specific challenges, such as limited resources, fierce market competition, and stringent regulatory requirements. These challenges necessitate a detailed exploration of the factors influencing growth strategies to support the sustainable development and competitive positioning of these businesses. Identifying these factors and understanding their implications is crucial for supporting the sustainable growth and competitiveness of retail SMEs (Hånell et al., 2020). 1.5 Research Question To explore these issues, the research addresses several key questions: 1 What are the key factors influencing the growth strategies of retail SMEs in the UK? 2 What modes of growth are preferred by these businesses? 3 How do technological advancements impact their growth strategies? 4 What challenges do retail SMEs face in implemen...