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The expansion model of the major Chilean retail chains

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Author: Calderón Hoffmann, Alvaro UN symbol.: LC/G.2323-P p. 149-168 December 2006


Chilean retail firms have succeeded in developing solid competitive advantages based on a business model that captures synergies from the joint operation of a number of related activities. This integrated retailing formula developed as a direct result of the intense competition in the Chilean market, whose limited size made it very difficult to achieve profitability in just one segment of the retail industry. The key to success has been to combine the best practices of international leaders with local knowledge, diversified provision that includes banking services, and the capacity for survival in a highly competitive market. Given all this, retailers have seen international expansion as the option most likely to set them upon a path of sustainable growth.

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