BUS9032M Understanding International Business Assignment Sample
Here’s the best sample of BUS9032M Understanding International Business Assignment, written by the expert.
Introduction
The report will have its focus on the international business theory that has been adopted for carrying right entry into the market. It will analyze the international market with proper analysis and evaluation that is made for expanding into the global market. It aims at attaining higher profits while expanding its business and operations into several markets. This ensures that different marketing strategies are meant to be adopted in the company for having a large number of customers. It leads to the attainment of profits and carrying out the right resources for grabbing its position in the market. International marketing strategy with the right business theory will be presented in the study. This will make its consideration of Gucci that will have its expansion into the countries like India and Canada.
International Business theory
Selection: why and how have you selected theory
Different types of theories can be taken into consideration for having the expansion of the business into the international market. The expansion of Gucci is based on the relevance of the market and the customers who keep having a better lifestyle. This requires proper analysis of the international market with its expansion required into the market of India and Canada. The company has its stability in the market in Italy having a large number of customers in the organisation. Thus, the focus of the organisation will be on eclectic theory so that it could develop its network with direct foreign investment that could help in engaging a large number of customers (Shaheen et al., 2021). The theory is majorly carried out for developing the connection and entering into the market with proper evaluation of the needs of the market.
Assumptions of the theory: main points of the theory
Gucci makes the usage curoduct life cycle theory and eclectic theory with the introduction of new products into the international market. This is meant with the evolution of products while increasing the sales over time into the competitive market. It needs to go through various stages into the product life cycle that follows Introduction, Growth, Maturity, and Decline. The introduction of the product into the market is meant for having the engagement of customers while appealing their choice so that they could sustain into the market (Nilles et al., 2020). It leads to the development of the right products into the market with the right product strategy so that sustainability could take place in the competitive market.
Application: Apply the theory in the context of your chosen company
The different company makes use of product lifecycle theory and eclectic theory in the organisation for having its expansion into the market with the introduction of new product in it. This is required for delivering required products to the customers with defined values in them. These regions came about into huge ventures from obtainment of the natural substance to completed merchandise. Since Gucci is a worldwide brand, it requires supply or circulation of products across the globe to incorporate significant expense costs. This is the justification for why a firm cannot reduce the expense of its item or administrations with its expansion into the market. It came about into restricted objective clients. Gucci utilizes upward coordinated inventory network strategy or concentrated conveyance framework inside which it contributed high on recruiting planners, labourers to staff to deal with the creation exercises alongside distribution centre or calculated channels to convey the item to conclusive clients (McGann, 2021). These all tasks create immense costs for the brand inside which it becomes very incomprehensible for a brand to accomplish minimal expense initiative. Notwithstanding this review, the expense of unrefined substance is ascending for the style retail marks and creating nations are putting tension for rising how many wages. It additionally becomes a justification behind Gucci for getting to an unrefined substance at an exorbitant cost with the development and introduction of its product into the market. It is observed that Gucci comprise of inventory network which intended to help in the nick of time like abilities with little creation parcels and continuous shipments to stores. The costs could be decreased in the event that equivalent plans-based clothing is created, preparing costs likewise get lessened with the usage of product lifecycle theory.
Recommendation: on entry mode or market selection based on the theory
Under the creation or conveyance unit, the assorted social individuals are working from various nations so it additionally requests for the right correspondences or preparing exercises. It leads to exploration into the market with the right market entry. It leads to the usage of the right market entry strategy such as acquisition or greenfield ventures. It ensures that the organisation could have its establishment of product into the competitive market with the engagement of customers in the international market. These additionally come about into expansion in cost of creation which is reflected in the item costs (Ma et al., 2018). In this way, these examined regions show the motivations behind why Gucci is bearing the weighty expense of the creation of its product into the market. Consequently, it become significant for Gucci to enjoy different vital choices to conserve the expansion expenses or resuscitate the lost client base of Gucci. It certainly needs to re-examine its value setting for creating or holding a huge client base in this worldwide downturn time. This requires the organisation to develop its values with the right market entry so that it could lead in the right direction. It will ensure growth into the desired market with the relevance of its products so that it could sustain into the desired market.
Market 1 Canada
Selection of Market: why and how
Canada has been selected for expansion into the new market as it helps the organisation to create effective and reliable network in the market. It ensures that Gucci can have large number of customers in the company with high purchase power. The innovative approach has been adopted effective in the market and they can make the usage of new ideas which assists Gucci to grow right manner. The restriction by government is also less in the Canada which assist in delivering the best products and services to the customers. The economic and political stability would help in managing developing and introducing new product into the market while having large number of customers in it (Ali et al., 2019). The market is selected with proper evaluation and analysis of market research so that it could easily attain higher profits and grabbing position. Higher income level of people in the country due to high labour cost, it would help the company to sell its products to them and sustain in into competitive environment. The growth perspective of the country would help in engaging large number of customers and sustaining into the market easily (Gucci, 2021). Thus, it has been considered that market stability could take place with the introduction into the desired market and having right people in the company.
Suitability:
Political and Legal suitability
The operations of Gucci are all over the world in more than 100 countries which ensure that its political exposure is at the global level. It has to comply with government rules and regulations that are pertained to the hygiene and health of people. It needs to maintain the labour laws, human rights laws, tax laws, etc. for managing the environment of Canada. It requires organisations like Gucci to evaluate the political aspects and policies for managing the changes while managing the changes effectively. The stability of politics in a country like Canada would help an organisation like Gucci to pertain into the market with new products and have the right expansion.
Economic and Financial Suitability
The changes in the economic condition of the country influence the operation of Gucci both directly and indirectly. Different factors such as employment rate, inflation, tariffs, spending ability of customers etc. influence the organization and its growth in the market. The increasing disposable income of the people in Canada has been boosting factor for an organization like Gucci but the high labour cost is a matter of concern for the company. Thus, all the factors are to be contemplated while producing a new product. It will make organisations like Gucci deliver the required products and services into the desired market.
Social and Cultural Suitability
The progressions in the decisions and inclinations of the general public influence the usefulness of the association as it needs to consider such viewpoints for fulfilling the general public. The progressions in sound ways of life expect individuals to have their commitment to solid items. This necessary Gucci to assess the necessities or inclinations of the clients so it could have the right creation. The progressions in the ecological variables influence Gucci and it sends off into the market. The main issue for the food business in nations like Canada is the accessibility of countless contenders. It guarantees that Gucci necessities to make do with new systems and practices for making do with the progressions in the cutthroat climate. This prompts the utilization of the right valuing practices and promoting procedures for producing mindfulness and drawing in clients.
Technological and Infrastructural suitability
The progressions into the mechanical component, for example, advancement, computerization, specialized mindfulness, web-based media impact Gucci straightforwardly in the market of Canada. Online media and solid correspondence innovation are involved by the association for speaking to the clients and meeting the opposition. The progressions in the innovation are to be embraced by the association for managing its tasks and having their sent off into the ideal market. In this manner, Gucci makes use of state-of-the-art innovation for supporting the competitive and desired market (Harris, 2021). Right infrastructure would help in appealing the choice of the customers and attracting them so that they could satisfy them easily.
Entry Mode
Selection: why and how
The evaluation of market with the usage of PESTLE analysis is made in the organisation so that it could have its stake into the market. It ensures Gucci to have usage of right market entry strategy for exploring and delivering its product to desired market. It leads to have assurance for evaluation of right market with easy entry into the competitive market (Asl-Najafi and Yaghoubi, 2021). This helps the organisation to have evaluation of external environment that affects the Gucci and their operations. This leads to usage of direct investment strategy in the company so that it could have its management of resources and have right customers in it.
Discussion: main points
Direct investment is right market strategy for the organization like Gucci it makes it to have large scale production and have marketing with direct exposure with right investment. It will help Gucci to have its stake into international market while having large number of customers (Patterson, 2019). It is responsibility of the organisation to have engagement of marketing activities while appealing the choice of clients in desired market. Gucci has taken up the market entry strategy into Canada for having right customers in Canada with its expansion into international market.
Application: Apply in the context of the chosen country for chosen company
The implementation of right market entry strategy is important for Gucci so that it could have have its right product development with the assurance of right customers in it. In addition to this, this is meant for leading fo sustaining into the makret of Canada while meeting wthe external environment needs. The growth of the company is based on the products and services that are offered by the company to its customers. Thus, Gucci has made its focus over the usage foreign direct investment strategy for growing into right level (Colucci and Vecchi, 2021). It is meant for adopting right makret strategy for the organization like Gucci it makes it to have large scale production and have marketing with direct exposure with right investment. It helps the company to have its stores into Canada and have right exposure to the market. Canada is a county where high returns can be valued within shorter span as the desire of the customers is based on their income level.
Market 2- INDIA
Selection of Market: why and how
Indian makret is selected by Gucci for expanding the operation as it have large number of customers in the organisation for meeting with competition. Market of India is large market where it have different type of people with diversified culture (Jamali et al., 2021). It makes Gucci to have customers while growing into right direction. Moever, customers of the India or people in India have different income level that ensures that their purchase power could help in having large number of products (Micco, 2021). Moreover, this market is selected with the evaluation of the spending power of the customers and their consideration of having branded product. It has been observed that makret in India is highly competitive with political stability that led it to enter into market in an easy way.
Suitability:
Political and Legal suitability
The progressions into the public authority suggestions and its capacities influence the association like Gucci into the market of India. The familiarity with exchanging arrangement of nations makes it embrace guidelines for sending out its items to wanted clients. This likewise thinks about political dependability for doing business in various nations. Consistent with lawful guidelines would help in smoothly working the business (Placella, 2020). It is required for entering into the market with the evaluation of political regime and managing with the guidelines of the government. The legitimate commitments would help in gathering and making brand picture into the market.
Economic and Financial Suitability
The progressions into the expansion rate and by force of the clients influence the association while managing itself into the right course. These prompts in having its concentration over the estimating methodology with the evaluation of expenditure of the clients. Evaluation of the purchasing power of the customers is needed to be evaluated for having the right pricing for the product into the market (Masum et al., 2020). It makes the clients have its dynamic commitment with an assessment of expenditure examples of clients. This ensures that Gucci could have the right profits with the management of demands of the customers in the desired market.
Social and Cultural Suitability
The progressions into the style influence the decision or inclinations of the clients that make the association make do with such changes. The changes in the perception and values of the customers differ from one customer to another which requires the organisation to consider it evidently. It prompts have its thought over various social variables for dealing with various patterns into the association. It guarantees that development is arrested for engaging its necessary clients. Different cultured people make the organisation satisfy the needs of the customers while evaluating and analysing them effectively.
Technological and Infrastructural suitability
The reception of innovation prompts the upkeep of value and effectiveness into the market while fulfilling the clients. It expects it to have its concentration over advanced angles with the goal that it could have it’s situating into the marker while having a worldwide presence. It leads to the usage of new technologies in the organisation while having innovation into it so that it could satisfy its customers easily. The site of the organization goes about as apparatus for drawing in the clients. The development of the right infrastructure and carrying the right technology for reaching desired customers easily.
Entry Mode
Selection: why and how
The market is selected by Gucci as it has different cultured people who seek to engage with each other effectively. It is a lage market and have large number of customers which would help in leading into right direction with the delivering right products. It is important for the company such as Gucci to have its stake into the competirive market. The integration of technology would assist in amanging and providing the customers with products online (Paul, 2019). The youth generation in India is keen to have large products while having its stake with the usage of foregin direct investment in the company.
Discussion: main points
Direct investment is right makret strategy for the organization like Gucci it makes it to have large scale production and have marketing with direct exposure with right investment. Investing into the market would ensure the organisation that they couldhave attaubment of high profits with large number of customers (Jamali et al., 2021). It is an opportunity for an organisarion to access to large customers with large number of productions in it. This is an important aspect while managing the changes into the competitive country with the expansion into international market. Gucci could enter into such market with the recognition of right target market.
Application: Apply in the context of the chosen country for chosen company
Gucci can implement the direct investment strategy into the organisation in easy way for having right expasnon with the delivery of products to their customers. The development of the organization depends on the items and administrations that are presented by the organization to its clients. In this way, Gucci has made its concentration over the utilization unfamiliar direct speculation technique for developing into right level (Bandick and Sanneh, 2018). It is intended for embracing right makret system for the association like Gucci it makes it to have huge scope creation and have showcasing with direct openness with right speculation. It would help the organization in India to grow easily with the attainment of large number of customers. Gucci could grow effectively while recognition of right demands of the clients for having their engagement (Jamali et al., 2021). It leads to have expansion into the market of India and raise the bar of competition in the market.
Conclusion and Recommendations
From the above study, it is inferred that Gucci is confronting two key issues i.e., the absence of specialized asset use alongside the significant expense of creation. It has also been evaluated that different market entry strategies are adopted in the organisation for having its expansion into the desired market. It is necessary for an organisation like Gucci to have the right strategies so that it could have its existence in the competitive market for engaging customers and grabbing its position. Different theories for having expansion into the international market have been presented in the study with the right market entry strategy.
Different issues have been faced by the organisation while having its expansion into the international market. These issues someplace impact the firm essential choices in a manner to further develop the client base or abilities among the contenders. Notwithstanding, the utilization of innovation development or computerized stage methodologies could assist the brand with reducing down the expense or ready to accomplish minimal expense initiative procedure to a since a long time ago run. It will help in meeting with competition and leading the organisation in the right direction with required products into the market (Stallkamp and Schotter, 2021). The use of suitable models, standards would help Gucci to restore its driving position or give capabilities to meet a high level of competition in the market. In view of Gucci current exhibitions, it is prescribed that Gucci need to zero in on item advancement where it needs to enjoy non-formal wears like party sort of clothes to draw in the adolescent market. It is likewise prescribed to Gucci to enjoy online media promotions or content composition to snatch the client base or convert the potential into steadfast ones. It would make the company have its generation of awareness in the market in respect to its products and services.
References
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Bandick, S. and Sanneh, F., 2018. Foreign market entry strategies: Evidence from a developed and an emerging market.
Colucci, M. and Vecchi, A., 2021. Close the loop: Evidence on the implementation of the circular economy from the Italian fashion industry. Business Strategy and the Environment, 30(2), pp.856-873.
Gucci, 2021. Gucci’s strategy: What does it take to be #1 hottest brand? Available at: https://www.lectra.com/en/library/guccis-strategy-what-does-it-take-to-be-1-hottest-brand#:~:text=Gucci’s%20strategy%20to%20be%20the,best%20capitalize%20on%20fashion%20trends.
Harris, A., 2021. Italian fashion brand Gucci expands presence in Canada. Available at: https://vancouversun.com/life/fashion-beauty/italian-fashion-brand-gucci-expands-presence-in-canada
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