A CEO of a successful US clothing store that sells men’s and women’s athletic we

Question

A CEO of a successful US clothing store that sells men’s and women’s athletic wear is considering expanding to markets outside the USA. The company is well established in the US and most popular with teenagers and young adults between the ages of 20-38. The company has a differentiation strategy encompassing fashion forward, trendy designs and colors. The products command higher prices due to their unique patterns and perception of high quality and style. The goods are sold in stand-alone stores as well as integrated into A level department stores and boutiques. The company is unusual since all the design, manufacturing and, of course, distribution is done in the USA. For a couple of years, sales have remained steady. The CEO has been thinking about expanding into international markets to increase sales or perhaps outsource some of the production processes to reduce costs and has decided to hire a consultant – YOU, to help make these decisions. The CEO is considering Brazil, Russia, India or China as locations for new markets or production. Which of these countries would you recommend and why? Perhaps you would choose a different country: which one and why? What are some of the potential opportunities and challenges the CEO needs to be aware of? Remember to review the lecture, readings and resources for this unit to help you formulate your responses. Q1: Share your advice on selecting markets for new sales. Q2: Share your advice on selecting locations for production.

Explanation / Answer

1) As per the information is given in the paragraph, it is reminded that the CEO is expecting to expand the business all around the world. And for that, the most probable countries that the CEO wants to concentrate on would be Brazil, Russia, India or China.

I would recommend the CEO to concentrate on all the above four countries in the following sequence.

1. India, 2. Russia, 3. China, and 4. Brazil.

Because, as most of the Indians are working in USA and population of Indians in the USA would be 1.3% of the US Population as of 2017. And moreover, the clothing industry in India is more famous apart from the interest of Indians attraction towards the Western Culture. So, India will be considered first.

Russia is considered next because Russia and Indians are most of the same countries in terms of taste. China is considered next, because, they do fond of their clothing section when compared with other countries but, they do concentrate on their traditional clothing.

Brazil is a country which depends on most of the clothing internally.

2) There are a lot of opportunities and challenges that a CEO will face when he is concentrating on expanding the Clothing Industry. A lot of points will be considered. But, as of now, the following points will be considered.

The Opportunities for the USA clothing industry is the Brand it made in the world that the products are genuine, durable and higher quality. And the brands that the USA is promoting in terms of sales.

The most probable Challenges that USA clothing industry will face would be of in regard to the Technological innovations in the recent times. And also expecting higher incomes in a short period of time, strong brand loyalty creating, etc.

3) To expand any market, it is necessary to concentrate on various factors.

The most probable advice would be getting more income without diminishing the brand of the industry.

To become like that, a lot of factors like the market area, market range, competition in the market, Product liking in its various forms, etc. have to be concentrated on.

Locations have been concentrated on considering the facts that the market range, various other markets, production plan, production range, competition with other productions etc.

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