Foreign Market Entry and Diversification Essay Example for Free

Foreign Market Entry and Diversification Essay take a leak An Argument For Diversification Of Your Business That Will Be Presented To The Board Of Directors Or Business Investors. Diversification is acquittance to be the key to the longevity of our label. Our smallest competitors, Simply Fashion and Cato, shot shoes and accessories while our largest competitors, Lane Bryant and alley sustain begun to offer minimal exercise wear. diversifying entrants pose a large threat in change magnitude rivalry and challenging incumbents market sh atomic number 18 (Klein Lien, 2009, p. 299). Right now, Lane Bryant is the leader in diversified mathematical product lines, although our competitors offer a variety of products in plus size of it fashion. Our company bequeath improve on quality in order to become a threat to the competitors. If we do not diversify, we willing speedily become irrelevant in the market, like our smaller competitors.If we plan to succeed and increase longev ity we must(prenominal) diversify and improve upon what our competitors offer. Develop A schema For Diversification Indicating The Products And Industries For The Diversification And How Synergies May Be Gained From The change Activity. As a counselling to increase popularity and customer base loyalty, marketing, research and development will race with designers and distri besidesors on a costume accessories line for plus size women. Currently plus size women atomic number 18 hard pressed to find bracelets for the larger wrist, rings for the larger finger and necklaces that fall where they are vatic to. Lane Bryant is the leader in accessories but they are extremely expensive at twenty to xxx dollars for a ring or bracelet. Costume jewelry is not an item that is meant to last forever. Metals tarnish, plastics color fades after repeated use. Our company toilette come in and offer the correct size accessories at the correct price.Claires is a leading accessories line for aver age women. They are successful because they offer an extremely wide variety of accessories at varying price take aims but they do not bugger off many pieces for larger fit. They do offer extenders for necklaces and some bracelets but the extenders are generic and most quantify do not match the jewelry purchased. We see a synergy with them as a way of increasing sales and market for both companies. Another area for diversification is the exercise clothing line. quislingism with Weight Watchers or Jenny Craig will put us ahead of our biggest competitor. The need for properly fitted, sluttish exercise clothing is great enough for our company to corner this market. The collaboration will give the pack losing industry a chance to enter another market. Identify And Discuss The Foreign Market That The union Should Enter And Discuss The Strategy It Should Use To Enter The Market. According to the demographic population statistics of 2011, published by MINTEL (Mintel Group Ltd., 2011) , England has the next highest population of plus size women.Almost 25% of the women wear size 18 and over. Nearly 40% of the female population in the UK wears size 16 and over. With these demographics, our company plans to enter the globular market in those countries. They have seen an increase in the sale of plus size clothing but the numbers are still small, leaving the industry open for infiltration. Plus size attire save accounted for 17% of total womens clothing sales in the European market in 2011. The dodge for entering the market will start with opening the online boutiques. As popularity increases we can look into established a brick and mortar location. The store will be a representation of our American locations but also expire with the local atmosphere. Purchasing locally is a key strategy as it pleases the local authorities and meets the necessitate of the local consumers. European retailers are more likely to export retail formats that add value by catering to the needs and tastes of the local market, they are likely to enter foreign markets that are developing and are likely to scale up profitably, keeping pace with the economic development of the market place (Bell, Lal, Salmon, 2004, p. 312).We will establish relationships with local designers and fabric retailers. The building of this relationship will help us gain think and loyalty within the local economy. Discuss The Challenges That Company May Face In The Foreign Market, And How It baron Respond Strategically To Minimize The Impact Of These Challenges. Even though all the research shows the industry creation ripe for new entries, the target market is a challenge. Plus size women dont needs want to be plus size women. The angiotensin-converting enzymes who wear sizes under 18 will shop in regular stores if possible because once they start shopping in a specialty store they have to admit facts to themselves that they may not want to address. Plus size figures are not always bigge r replicas of the average sized female. With being larger there sometimes are different shapes that have to be accounted for when buying clothing.The best way to combat that would be to align ourselves with the different coalitions that are forming in the European to help understand and beat obesity. We could donate time, supplies and some proceeds from special campaigns to their cause. Our company will exclude being seen as an enabler to obesity. corpulency and overweight among children in Europe is also associated with the socio-economic status of their parents, especially their mothers. Furthermore, cross country comparisons show the prevalence of childhood overweight is linked to a Member States horizontal surface of income inequality or relative poverty (Robertson, Lobstein, Knai, 2007, p. 9). Since studies have shown that obesity is mostly a socioeconomic problem, we can take on a Be Beautiful Being You motto. We can work with local groups and organizations to hire awaren ess to the community. Helping to create positive self-image and awareness of affordable healthy choices will be a goal of our company.Create A Scenario When It Would Not Make Sense For The Company To Diversify Or cover Into A Foreign Market. Provide Support For Your Rationale. The clothing industry as a whole has been branching into mainland China because of their expanding economy and large population. According to Business of Fashion, China has seen a 33% increase in the purchasing of luxury fashion goods (Harilela, 2012). Normally, this would make it a prime target for global magnification for our company. However, China is country where our company would not likely prosper. China has only seen an increase in waistlines in the outgoing few decades. Even with the increase in size, the numbers are enough to validate entry into their economy.The cogent are roughly one out of 70 people in China, as opposed to one out of three in America (Suarez, 2010) Even though those statistic s are from 2010, they still warn against expansion into their market. Assess How The Company Will Create A Business Environment Conducive To good Behavior. Ethical business practices will start in upper management and pass down to lower level employees. The company handbook will have a section on the importance of ethical policies and how to give business as such.Employee interactions will involve speaking truthfully, taking responsibility for ones actions and scholarship to be upfront about opinions. Customer service ethical standards will include providing quality products at fair pricing, being honest about features of the clothing and the floor sales clerk will not be allowed to give judgment on customer apparel choices. Employees will be encouraged and unavoidable to report safety issues, theft, harassment issues or any other work related problem. Our company will be committed to conducting business in a way that meets the needs of our present market goals without whippy t he company brand image.Works CitedBell, D. E., Lal, R., Salmon, W. J. (2004). Globalization of Retailing. In J. A. Quelch, The Global Market Developing a Strategy to Manage Across Borders (pp. 290-312). San Francisco, CA Jossey-Bass. Harilela, D. (2012, April 8). The Top 20 Movers, Shakers and Decision-Makers in China Fashion. Retrieved from The Business of Fashion http//www.businessoffashion.com/2012/04/the-top-20-movers-shakers-and-decision-makers-in-china-fashion-2.html Klein, P. G., Lien, L. B. (2009). Diversification, Industry, Structure, and devoted Strategy An Organizational Economics Perspective. Economic Institutions of Strategy Advance in Strategic Management, 299. Mintel Group Ltd. (2011). fifth part of Brits are Plus Size but clothing selection is thin on the ground. Mintel Group Ltd. Robertson, A., Lobstein, T., Knai, C. (2007). Obesity and socio-economic groups in Europe Evidence. European Commission. Suarez, R. (2010, June 1). Reporters Notebook Obesity on the Ri se in China. Retrieved from PBS give-and-take Hour http//www.pbs.org/newshour/rundown/2010/06/reporters-notebook-obesity-rising-in-china.html