Factors Influencing International Fashion Retailers

The form of this research thus relies more on quality instead of quantity. The data is obtained from relatively small samples and is normally not analyzed with statistical technique. This type of research is normally to answer ‘how or why’ questions (Yin, 2003). The methods of collecting data sources are mainly interviewing, focus groups, observation and document reviews (Meurer et al., 2007). The main purpose of this kind of research is to gather an in-depth understanding of the phenomenon studied and to describe the situation through detailed information (Adar, 2011). The purpose of this study is to gain insightful information in order to have a better understanding on how internal and external factors influence SME’s in choosing the right market entry mode. Therefore, the author regarded that the qualitative is the most suitable to understand how the factors affecting entry mode choices. In addition, this study has no intention to test statistically

Threat of new entrants: Retail industry has a higher barrier to entry. First, it is difficult to work out a good value chain as it involves a complex process. Second, it is difficult for new entrants to gain competitive advantage and earn above-average returns in such a highly competitive market. Besides,

H&M has always enjoyed a leading position in the global ‘fast fashion’ and apparel market. With threat on its radar it now must evaluate the sustainability of competitive advantage with regards its strategic capabilities. As part of this assignment we shall take a look at four primary areas of importance.

The threat of entry of the supermarket industry in US is low, which base on the analysis of the three major sources that related to the entry barriers. The first barrier is the economies of scale of the existing large supermarkets. When these incumbents achieved larger volume sales, they can have lower unit costs than new entrants, and it will very difficult for those new entrants to compete with them (Johnson, Whittington, &Scholes 2011). For example, Wal-Mart had invested in innovative procurement, automated distribution centre and bar coding to increase its economies of scale, and these investments created a great barriers for new small retailers to enter into the supermarket industry (Porter 2008). The second barrier is the incumbency advantages, which mean the incumbents established their own strengths that cannot be used by competitors (Porter 2008). For example, the top ten supermarkets in US have accumulated extensive experiences on how to run their businesses more efficiently than new entrants (Johnson, Whittington, &Scholes 2011). The subtle differentiation between the products that sold in supermarkets is the third barrier for new entrants. Because most of the product assortment is same or similar between each supermarket,

Regarding the frameworks for the studies, Lee et al., (2017) utilized a research design which was partially structured by preparing interview questions, however, it took on an emergent design when the service manager interviews led the researchers to explore the views of frontline staff. When data saturation occurred, they concluded the study without a defined number of participants (Lee et al., 2017).

simplicity of market entry: Advances in telecommunications, computer technology and transportation have made entry into foreign markets by

The apparel store industry within the USA is a highly competitive market, consisting of number of companies that are willing to fight for their share of the market. To remain afloat in this business, corporations must be highly innovative, price-conscious, knowing the trend, and with great responses to consumer needs. Each company within this industry must be aware of the competitors’ move, trying to match every trends and benefits offered by another, in order to steal the average consumers. Market-alertness is the key to survival; each company must balance marketing strategies and customer-service, responding to consumer demands within the shortest processing time

High capital requirements, specialised assets and economies of scale of existing retailers reduce the incentive of competitors to enter the market. Similarly, the customer loyalty and brand awareness of David Jones’ differentiated product category reduces the incentive to penetrate the

Conversely, Gillespie and Hennessey (2015) strongly claim that the complexity of the international marketplace, the significant differences that exist from country

Mulberry finds that luxury flagship stores represent a strategic approach to market entry that is employed to support, enhance and develop distribution activities within a foreign market. The importance of the flagship store is to reinforce and enhance the retailer's luxury status and enhancing and maintaining relationships not only with customers but also with distribution partners and the fashion media is found to be significant.

In this paper the executive at a high-end retail chain selling luxury watches, jewelry, and hand bags is in charge of the company's first expansion in the international pool, which is about a new store open in Shanghai, China. This is only a short term objective as the company expects to open several stores in the BRIC countries, such as Brazil, Russia, India, and China, which is the long-term plan. The executive explains the chain models used to follow the short-term and long-term goals and the effects these changes would have on executives, managers, and employees from the company.

The need for a solid market entry decision is an integral part of a global market entry strategy. Entry decisions heavily influence the firm’s other marketing-mix decisions. Company can enter International Market with many ways, some of them are as follows:

Retailing is rapidly becoming a global industry and many retailers are expanding to foreign markets. However, some retailers successful in their home countries have failed in emerging markets such as Chile. A case

The 3 entry modes present different advantages and drawbacks, Franchising Strategy showed low control in the operations, low risk of exposure, low investment and high support from the local partner. Joint Venture entry mode indicated moderate-high investment, moderate risk, medium exposure and moderate control. Lastly, Greenfield entry mode denoted high risk, high investment, high control of the operations and high exposure.

The reluctance of firms to change entry modes once they are in place, and the difficulty involved in doing so, make the mode of entry decision a key strategic issue for firms operating in today’s rapidly internationalizing market place.