Country Road Essay example

1130 Words Apr 29th, 2011 5 Pages
Country Road has been an iconic Australian brand for 36 years, building its success on its high quality and unique designs that look effortlessly casual yet stylish. Following the high financial performances of their Australian stores, Country Road decided to embark into the United States of America (US) in 1989, in hope of realising the financial gains they saw here. Unfortunately, their strategies didn’t work, and they found obstacles which hindered their success in the US. This essay examines the types of strategies Country Road has pursued and what led Country Road to follow an international expansion strategy. Further, we discuss the impediments to Country Road succeeding in the US retail market, before suggesting strategy options for …show more content…
Country Road did this by lowering their selling prices but at the same time, maintaining the quality of their clothing. To do this, they have sourced for suppliers that are willing to cooperate with them in cost reductions (Australia’s best retail, 2011). This is a win-win situation for both Country Road and their suppliers where Country Road gets to reduce their cost to maintain profit and their suppliers gained good reputations. Another strategy they have used on cost reduction is by introducing product distribution directly from their China-based distribution centre in year 2007, which eventually reduced their operating cost and lead time (Annual report, 2007). In addition, Country Road also pursues a differentiation strategy. This can be seen by the unique architecture and layout of their stores which makes them stand out from their rivals that were located geographically close and also the marketing of their Australian brand image (Kerr& Sarina, 2006).
Country road has been well established as an Australian brand in Australia before it engaged in globalization. Having a strong foothold in the Australia fashion, it is one of the most representable and well-favoured fashion brands in Australia. With its growing success, this gave the firm the confidence to venture into the global market and had the capabilities to do so after Myer Emporium

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