Selling Through Wholesaler Costs A More

2) Explain the role of channel intermediaries in the product distribution process. Why is their role important?

The supply map and the supply chain management consist of manufacturers, distributors and retailers. The marketing mix determines the product mix and the product mix helps the fashion designer to control the target market. The distributor of the finished garment later determines how the product would distribute throughout the department and discount stores. The target market will help the designer to assess the success of the garment. The selection of the garments plays a volatile role in the supply chain because without the right garment/raw materials the finished product may not result to the vision of the designer. “The

Mr. Price needs to ensure that they are at a competitive advantage with their clothing and their prices so customers know to buy from them as it is value for money. It will help benefit the business in the future by having the upper hand amongst their rivals.

If the company’s goal is to capture the maximum market share, it will most likely venture into the foreign market with wholly owned subsidiaries to achieve its maximum target (Koch, 2001). However, if the focus is to get maximum sales target, the company will opt for indirect export entry mode (Koch, 2001).

When a company decides to enter a foreign market there are several entry options available. The options include exporting, licensing, joint

This essay it will examine the economic, social and political issues that shaped Tommy Hilfiger on a global environment. First it will investigate why Hilfiger decided to sell internationally rather than concentrating on the domestic market and secondly it will analyse if operating globally affected the prices for Hilfiger’s merchandise. Analysing the prices will lead to a conclusion which will reveal if it has created any problems for the Hilfiger’s organisation.

Ans. The four companies shown given in the case have very different business models. Inditex owned much of the production and most of its stores. Inditex is thus a vertically integrated company. This gave Inditex a competitive advantage, which is quick response to the market requirements. On the other hand, The Gap and H&M have a different business model. They owned most of the stores, but outsourced all the production. And Benetton had a third business model. It invested heavily in the production, but licensees ran its stores.

enter into another country. When a company is looking to enter in these different countries the

• Wholesaler and retailers buy larger quantities of a product than a consumer (Bulk breaking)

There are two reasons to running the International Business, first is specialization between nations. In a relation with an advance or a certain power with all its weakness, therefore a country must be choose a strategic option to produce a strategic commodity. The second is the consideration of business development. A company that already moves in some kind of business inside a country often tries to

A good relationship between Australia and Japan has a substantial effect on the Uniqlo Sydney branch business. For example, at the “C the Future” Conference, in Brisbane held in September, there was a discussion about emerging trade and investment opportunity, following on from JAEPA (Japan Australia Economic Partnership Agreement) (AJSQ, 2014, p. 3). Therefore, the approach of Uniqlo stores will be opened more throughout Australia.

|Business |Department store, supermarket, watch retails, finical, |fashion retail business across HK, China Arabia, Asia, |

Companies move into foreign markets for various reasons. In certain cases, it is towards achieving a required sales volume. In other instances, it might be a bid to increase brand awareness. Other companies go into foreign markets to re-invigorate sales after their products have gone through their life cycle - from inception to decline - in home markets.

Investment issues are at the forefront; firms invest to trade and trade to invest. The old model of manufacture in one country and sale in another has given way to an international process of manufacture assembly, finishing and marketing, which leapfrogs national boundaries. A change reflected in

FDIs, or “Foreign Direct Investments are when a firm invest a certain amount of resources in business activities outside its home country, giving it some control over those activities” (Hill, et.al, p19, 2014)