This chapter will describe the theoretical framework of this report. This is an import part of the report, as the theoretical framework will give either a better understanding of or serve as a warning/advice when planning or analyzing strategies about specific subjects.
Seeing as UNIQLO is a brand of clothing, there are several key factors that will come into play during their entry into the next European country. These are in fact common for any product based company. For one, their products need to be transported from the country of manufacturing to the country of the consumers. It is in this case important to find the best methods of transport for this particular product, in terms of cost and time efficiency. Another factor would be the market entry. There are a multitude of possibilities for a company to enter a market, but which one is best suited for their needs? It could be by franchising, or perhaps licensing their brand to another, already established, store for their products to hit the country’s market. And finally, a marketing strategy needs to be made. How will UNIQLO products reach their targeted consumer?
To help us with these factors/aspects, several theories will be reviewed to find out the intricacies of each.
2.2 Market Entry
Expanding a company into foreign markets is no easy feat. A great many companies have tried over the past decades and many have learned firsthand, that in the world of trade, one has to be prepared and cautious. It is for this reason, that many have dedicated countless hours, days, weeks, months, even years, into finding successful methods. Some have done this by simply trying, and consequently failing. Others have used the data provided by the failed attempts, and the successful ones, to r...
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...n Europe and Asia, it tends to be forgotten that this also reflects into doing business and not just social interactions. Hofstede, Hofstede and Minkov (2010) can give a listing of the differences between cultures, globally, and how these differences can be analyzed, but this does not inform people of how to act and react in other cultures outside of social interactions. According to Pye (1983), cultures can influence the way a negotiation proceeds, Maede (1969) shows that leadership is different depending on the culture of the leader and Naor (1986) and Tse, Russel and Nan (1988) conclude that marketing is not any different.
Taking this into consideration, it is of the utmost importance for UNIQLO to keep in mind that the marketing strategy they are using in homeland Japan, or in the rest of Asia, may not be as successful, if at all, when used on a European market.
Advantage: Expanding the sale of products in foreign countries will help UA to become a global competitor in the world market for sport apparel and performance products; enhancing the global awareness of UA brand name and strengthening the appeal of UA products worldwide.
The rise in globalization over the last few decades has helped facilitate and encourage corporations to expand into international markets. This paper will review the five common international expansion entry modes, and the pros and cons of each method. Finally, my employer is in the technology industry and I will breakdown and recommend which entry mode would work best for international expansion.
Being an upscale industry, Abercrombie and Fitch would appear to be a successful corporation. Although the company was once successful for a number of years, it’s apparent that there has been a significant decline in its overall appeal and how much revenue the company acquires each year. With just over 1,000 retail stores in the U.S., Canada, and Europe, Abercrombie and Fitch has thrived to be one of the most avid corporate extensions.
Brand identity is about story telling. Using the latest content that has been published, compromising the five best images that reflect the profile of the brand, a consumer-photo-storyboard can be developed to: Describe the profile of the brand; Identify the main communication and publicity themes; and Critically assess the integrated modes of communication with consumers, including limitations and negative content.
Matalan global vision will focus on strengthening its presence in the international markets it already operates, with plans for entry into new countries for 2019 and beyond (Matalan 2018). In addition, part of our strategy is to open a number of new stores through international franchise which depends on finding suitable franchise partners and suitable locations for our stores (Matalan 2017). Matalan’s unique offering of great quality fashion for the entire family and home at amazing prices appeals to many markets around the globe. According to Porter (1990), low cost and differentiation are two basic strategies for creating value and attaining a competitive advantage in an industry.
“Marketing across cultures”. Various sources will be used to study and analyze the chosen topic including : internet , business magazines, journals, books, etc. From all these , information drawn will help to complete the study of the topic and draw a satisfactory conclusion
The authors identify that there are three main factors that effect how people act, think, and make decisions. The first is religion, in some countries faith plays an important role in all areas of life in the culture of the country and can influence many of their customs and behavior. The second factor is that of fact. In many countries their greatest desire is to find the best deal and the best product or services. The final factor is feeling, if a culture is based on feelings the people will conduct business accordingly. For example it would be essential to make a personal connection with this type of individual.
The fashion industry has changed over a period of time due to the growth of boundaries. This is attributed to the varying dynamics of the industry; declining mass production, altered structural aspects in the supply chain, need for more affordable cost and quality. This shows that fashion retailers are able to acquire a competitive power in the market through making sure through which they get their products to the market for the consumers (McAfee, Dessain, & Sjoman, 2007). Consumers are hence able to get product easy and of high quality. Fast fashion has been able to meet the needs of consumers while trying to acquire major merchandize turnover to retailers than local rivals. The Zara case study reported sales $8.15 billion to its competitors Hennes & Mauritz 0f $7.87 billion (Dutta, 2002). This was the consumer’s one stop shop due to the quality products offered both globally and locally.
In the article, Cultural constraints in management theories, Geert Hofstede examines business management around the globe from a cultural perspective. He explains how he believes there are no universal practices when it comes to management and offers examples from the US, Germany, France, Japan, Holland, China and Russia. He demonstrates how business management theories and practices are very much subject to cultural norms and values and by understanding these differences, it can give managers an advantage in global business practices.
During the 1990s, Japan has been exposed to one of the most difficult structural transition periods in its post-war history, in terms of social and economic conditions. There have been two major changes: one is a substantial decline in economic growth in real terms, and the other is a changing social structure characterized by the declining birth rate and the ageing population. Under the pressure of changes in the economic environment caused by globalization and innovations in information technology, Japanese business corporations are forced to adapt to the new situation. While companies faced with fierce international competition, it became more critical to understand the basic knowledge of complicated legal, cultural, economic, and social issues. Engaging in international trade also requires attention to international regulations, international business planning, international market research, funding, distribution and other areas that must be considered separately from domestic business issues. The paper suggests some of the basic tools that can apply to solve the problem or to bring the business opportunity to fruition in today's Japanese business environment
Porter, M. E., 1999. The Five Forces that Shape Competitive Strategy. Harvard business review, p. 80.
Korea's apparel industry has shown steady growth over the past few years with the rapid embrace by its consumers of foreign fashions, an increasingly wider variety of apparel in the marketplace and evolving industry marketing channels. The emergence of new distribution networks for apparel has occurred in tandem with changing consumer tastes and purchasing patterns, most notably through E-commerce, TV home shopping, fashion outlets, and discount stores, which for the most part, weren't in existence before the 1997-98 economic crisis. These new channels now account for 40% of all apparel sold in Korea, while traditional channels, such as department and chain stores, comprise the remaining 60%. It is expected that these relatively new marketing options for apparel companies will become even more important in the near future, as Korean firms strive to meet their consumers' increasingly demanding preferences for a wider variety of purchasing options. At the same time, a more diverse selection of apparel has become available for consumers, especially with the larger number of Korean firms offering imported fashions. As a result, more and more Korean consumers have been switching from domestic apparel to foreign brands, while they also have shown greater interest in foreign-labeled apparel that is produced locally. In 2002, the total market size of this industry was USD 15.9 billion, up 5.5% over 2001, and it is forecast to grow by 3%, to USD 16.4 billion, in 2003. END SUMMARY
The differences in other cultures vary from beliefs to ways of life, or norms, of the different societies. The importance of understanding and sensitivity to other countries’ differences is crucial to a business’ success. “Lack of familiarity with the business practices, social customs, and etiquette of a country can weaken a co...
There are five individual theories which have a direct impact on this relationship mentioned and explained below:
...enture into overseas market comes with expectations as well as uncertainties due to unfamiliarity. Charles and Keith, the fashion retailer, has to understand clearly that what appeals in one market might not be accepted in the others and this is almost the same for all industries. Thus, a thorough research on cultural background has to be done before entering an unfamiliar ground.