Essay on INTERNATIONALIZATION OF KOYO JEANS

4462 Words18 Pages
International Business Strategy

INTERNATIONALIZATION OF KOYO JEANS FROM HONG KONG

Contents

Executive Summary i

1. Introduction 2
1.1 Purpose
1.2 Background

2. Environmental Analysis (Current Markets)
i. Microenvironment (Porter’s 5 Forces) 3 ii. PESTEL of Koyo Jeans (Currents Markets) 3 iii. Internal Factors 4 iv. Lifecycle Analysis – Current Markets 5
v. SWOT/TOWS Analysis 5 3. External Analysis (New Markets)
i. Microenvironment (Porter’s 5 Forces) 6 ii. PESTEL of Koyo Jeans (New Markets) 7 iii. Lifecycle Analysis (New Markets) 8 iv. Opportunities & Threats (New Markets) 9 4.
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We can therefore conclude that the bargaining power of suppliers and bargaining power of buyers are relatively high in all the 3 countries. Koyo goods are all being manufactured in China now; giving the suppliers the upper hand. Apart from well established brands, new entrants are also possible with/without substitute such Cargos and Jeans, therefore increasing the competition for Koyo. ii. PESTEL of Koyo Jeans (Currents Markets)
From analyzing the 3 current markets of Koyo (Appendix B), we can conclude that Koyo has been focusing on the Asian market, more specifically Asia-Pacific. We have to consider the fact that Koyo is a fairly new player and therefore has not taken many farfetched risks. Even though it has a market in France; if we look deeper we can see that it has only one store there. iii. Internal Factors
With the help of the Value Chain (Appendix D), we are able to conclude that Cheung was able to add value to the company in 3 key regions which in turn increased the profit margin. Quality textile was sourced from Taiwan at very competitive prices. The operations were streamlined and bettered over time. Lastly, his careful selection of franchises helped him maintain control of the business and there by add value over time. iv. Lifecycle Analysis – Current Markets

Hong Kong: Growth Stage - Although Hong Kong has enjoyed strong growth over the years, the textile

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