Justifying the Opportunity in Germany for Rowlinson Knitwear: A Market Analysis

This document provides a market analysis of Germany for Rowlinson Knitwear's expansion. It discusses the political, economic, social, technological, legal, and environmental factors influencing the market. The analysis helps in justifying the opportunity for Rowlinson Knitwear in Germany.

Global Business in Context

Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Justifying the opportunity in Germany for Verdant Leisure and providing a background.....3
Outlining of international marketing strategy........................................................................8
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Global marketing strategy is defined as the approach through which countries from varied
region existing in the world in order to coordinate marketing efforts executed by a company.
Global marketing strategies are used by business in order to exhale in global territory and to
harmonise their whole efforts in a single lane to attain goals and objectives. Global market
strategy is based on meeting needs and demands of potential customers in such a way that higher
quality product or services can be delivered to them in effective manner. Global marketing
strategy is associated with identifying new market segment in order to understand needs of that
segment so products can be adopted by customers in effective manner. On the other hand global
marketing strategy is adopted so as to differentiate market segment and to unleash the same. This
report is prepared in order to understand major concepts of global marketing strategy in the
background of Rowlinson knitwear. The company is a SME and headquartered in UK. The
company is manufacturing knitwear and school wear for their customers. In the current time
Rowlinson knitwear is planning to expand their business at Germany so this report is consisting
of market analysis of Germany.
MAIN BODY
Justifying the opportunity in Germany for Rowlinson knitwearand providing a background
Rowlinson knitwear is an organization which is engaged in manufacturing of knitwaer
and school wear, corporate wear to their customers. The company is keeping plain stock at all the
time and for embroidery they take time period of 4 days.The company is not providing any
compromise in quality which enables them to inhale separate market identity. In order to
understand opportunities and threats which are existed in the market PESTLE analysis is helpful
for the company. As Rowlinson knitwearis willing to enter into new market segments of
Germany which is a brand new market for the company which is associated with numerous
threats and opportunities which could lead their expansion into success. PESTLE analysis is
defined as an external analysis in which various factors and aspects are being analysed in order
to grab opportunities for market expansion. In the context of Rowlinson knitwear the company is
having effective business in markets of UK which provides them distinct edge in competitive
market. PESTLE analysis for UK is elaborated as under:
Political factors

These are the factors determining the government intervention in the economy or in any
industry. It includes trade policies, trade restrictions, fiscal policies, tariffs and political stability
that are levied by the government which affects the environment of business to a great extent.
Rowlinson knitwear had a huge product portfolio but the major portion is corporate and
knitwear so it has to comply with all the regulations set up by the government for its smooth
functioning. It becomes easier to sustain in the market and form a friendly reform without much
resistance from its competition.
Economical factors
They are the elements used to determine the country economic performance which
directly impacts a company's performance and have a long term effect. It consist of economic
growth/decline, inflation or deflation, credit availability and cost of living.
The state of economy has a direct impact on the products offered by Verdant Leisure. At
the time of declining economy people are less likely to purchase expensive products, which have
a direct impact on the cash flows and profits earned by Rowlinson knitwear in adverse manner.
Social factors
These factors focuses on the social environment and identifies emerging trends. It helps
the marketer in understanding the needs and wants of their customers. Population growth rate,
education level, family demography, etc. are included in it.
Having a presence in Scotland and Northern England, Rowlinson knitwear has a strong
brand reputation. It advertise its products in various commonly used languages so it leads to
better approach in positioning and targeting the potential segment of the population.
Technological factors
These elements consider the rate of innovation and up-gradation of technology which
affects the market or industry. New technologies are emerging continuously. It includes digital or
mobile technology.
Rowlinson knitwear have a higher level of automation compared to that of its
competitors, which allow it to supply the products to the store location in a short span of time.
Sufficient resources are put into R&D division so as to launch new products that will help in
capturing a greater market share. It also helps in developing the company's reputation and will
impact the financials of it in a positive aspect.
Legal

These factors can be both internal or external. Internal elements are the policies of the
company itself whereas external elements are the laws imposed by the legislation. It consist of
Import/ Export law, Labour law, etc..
Rowlinson knitwear having huge portfolio of products in which they need to take care of
many rules and regulations, but at the same time it needs to protect all the patents as well.
Fraudulent companies might create a confusion in the customers mind and to avoid it strong
legal department is required that is capable or taking corrective actions and at a proper time. At
the same time inform its customers about the litigation and the processes.
Environmental
These factors include all that are influenced by the surrounding environment of the
company. It includes global warming, pandemics or other emergencies, supply chain, etc..
Rowlinson knitwear successfully projects itself as an environmental friendly
organisation. It is dedicated towards achieving its goal of 100% sustainable practices. Also it
desires to reduce the level of plastic used in service providing which can dramatically impact in
reducing the carbon footprints.
On the other side being a SME there are various aspect which are required to be
undertaken by the company such as pricing, funds and many more (Baena, 2019). So these are
the elements which are to be determined by Rowlinson knitwear before tapping into new markets
of Germany so as to inhale success and enhance their brand name as well. PESTLE analysis for
Germany in context of Rowlinson knitwear is elaborated as under:
Political factors: Germany is a democratic parliamentary federal republic where prime is
defined as head of the nation. Political system of Germany is so robust as the country is most
powerful nation within European Union. Germany is a member of World bank and IMF due to
which the country is the largest contributor for the budget to EU. Besides this the country is
keeping liberal policies due to which buying power of customer are taking positive inclination.
On the other side country is supporting external investors to come and invest in their country
which has become the major reason of political stability of the country. In the context of
Rowlinson knitwear as the company is willing to enter into market of Germany for this various
opportunities and challenges are being faced by the company during their expansion. In this
regard due to proper political condition the major opportunity gained by the company is related
to stay adhered to guidelines which has been issued by government ad they are liberal

(Chanthinok, Ussahawanitichakit and Jhundra-indra, 2015). On the other hand government of
Germany is facing high disagreements between varied government due to which high
consequences can be faced byRowlinson knitwear in their market expansion.
Economic factors: These factors are related with economic condition of the country and their
FDI policies due to which high implication can be drawn on domestic income and per capita
income of population. Government of Germany is aiming at becoming the most influential
economy in the world due to which they are highly emphasised on FDI. This is providing high
end opportunities to Rowlinson knitwear for their business expansion in Germany. On the other
hand in Germany purchasing power of population is high due to which major impact is seen over
positive inclination towards enhancing their buying habits (Coleman, Cooke and Kochunny,
2015). This is shown as a positive movement for various companies to invest in economy of
Germany. In the context of Rowlinson knitwear as the organisation is providing clothing range
and in Germany electrical equipments are manufactured in optimal manner along with high
quality. So this is creating higher opportunities for Rowlinson knitwear to minimise their cost
over varied elements which are required in their industry in order to attain higher satisfaction of
customers. On the other hand as Germany is associated with higher import activities due to
which they are having robust economic system and for Rowlinson knitwearthis is creating higher
opportunities to expand their business from UK to Germany in order to sustain.
Social factors: These factors are related with taste and preferences of population and their
inclination towards buying of any particular product or services. Germany is known as prominent
contributor in EU and the nation is having huge diversity. This is the major reason that social
factors existed in Germany are way different then any other countries. On the other hand
purchasing power of the inhabitant in the country is intensifying due to which growth of the
nation is increasing in continuous manner. Besides this machineries within the country is
affordable which is emerging as an opportunity for Rowlinson knitwear in order to expand their
business in marketplaces of Germany. There are various problem related to social factors such as
low birth rates, decreased purchasing power, expansive lifestyle and many more. These are
providing difficulties to Rowlinson knitwear in placing their services in marketplace (Craft and
Hassan, 2015). Besides this as the country is having very high number of companies those are
manufacturing homogeneous products so this renders an threats for Rowlinson knitwear to
advertise their services and business in such a manner that it leads in capturing huge customers

along with uniqueness. By this Rowlinson knitwear can acquire high customers and sustain in
global market.
Technological factors: These factors are related with using new and emerging technology in the
business so as to stay updated to the market technology. In this regard science and technology is
considered as the major constraints in which significant progress can be seen by businesses in
order to attain their goals and objectives. In context of Germany, the country is emerging as a
technology driven nation in which latest technologies are used by business in running their
organisational operations and to meet needs and demands of customers. On the other hand digital
technologies are used by most of the population of Germany which provides opportunity to
Rowlinson knitwear as they can advertise their new expansion by using digital channels so as to
catch attention of major population and enhance their customer base. Besides this as in current
time businesses are driven by technology such as digital technology and many other so in this
context Rowlinson knitwear is having opportunity to enhance technological usage in their
business operations so as to grab higher attention of their customer and to deal with market
complexities in effective manner (Crane, Kawashima and Kawasaki, 2016). Internet connectivity
is high in Germany which may come up as an opportunity toRowlinson knitwear as the company
is using social media channels as their prominent tactics of promotion. Besides this Germany is
the most technological advanced country in the world so this factors is helping businesses those
are willing to expand in Germany.
Legal factors: These factors are associated with laws and legal application which are existed in
the country and provide direct impact over business operations. Germany is a democratic nation
which safeguards people over discrimination. In this regard high business opportunities are being
developed by Rowlinson knitwear in order to expand their business at German areas. As
Rowlinson knitwear is an employee driven organisation due to which liberal laws make high
engagement of their employees in prominent manner. On the other hand there are various laws
such as employment laws and many more which are required to be adhered by Rowlinson
knitwear while performing their operations in Germany which lead them to stay away from any
legal proceedings that may hamper their brand image in negative manner. In the context of
opportunities, Germany is highly active in taking care of applicability of these law so by taking
care of employees Rowlinson knitwear may enhance their market capture and customer
accessibility as well.

Environmental factors: These factors are associated with applicability of environmental
practices which can be used by businesses in order to save eco-system and to minimise negative
impact over environment (De Mooij, 2019). Germany is famous for their natural beauty and
remarkable natural resources so this is responsibility for every business working over there to
manage these scare resources in such a manner that no optimal harm can be provided to them. In
this regard Rowlinson knitwear is having opportunity to use sustainable resources by which they
cab minimise harm provided to environment and national heritage as well. There are various
issues which are faced ion Germany such as problem of climate change, water scarcity,
deforestation. So in these issues Rowlinson knitwear may face numerous issues in expanding
their business at Germany, in order to deal with these issues Rowlinson knitwear is managing
their natural resources in optimal manner so that negative impact can be minimised (Harris,
2015). On the other hand in the current scenario of COVID-19, the major impact is seen on
hospitality industry and in this case Rowlinson knitwear may face high issues in sustaining and
expanding their business within markets of Germany.
Outlining of international marketing strategy
International marketing strategy is defined as the procedure under which in order to adapt
conditions of a particular country marketing strategies are adopted. This is not only associated
with selling of goods rather this is based on understanding needs and demands of customers in
such a way that the same can be fulfilled by meeting their level of expectations. This process
involves planning, creating, positioning and promotion of product and services offered by the
organisation in global market (Lin and Wang, 2015). Large scale business are having their
operations at global level so they are aware about internal condition of varied nations but in
context of SME they are expanding their businesses at global periphery by unleashing the same
and grabbing marketing opportunities as well. In the current market competition for every
business this is essential that to expand their business in international market so as to enhance
their competition with more than local organisations. This is the requirement of market that to
establish their presence in global market channels so that to cop up with prominent market
conditions (Mekonnen, 2018). With the help of global market presence effectiveness of product
and services can be enhanced due to which Rowlinson knitwear may attain distinct edge in
competitive market. On the other hand by expanding business at global market customer
awareness can be enhanced which enhances overall saving of the company. In the context of

building consistent brand image global strategies are helping the business to prepare a prevalent
market structure in which support can be undertaken by the business with the help of mass
population. There are various aspects which are required to be taken care by Rowlinson knitwear
in order to outline their international marketing strategy, the same are elaborated as under:
Pricing decisions
Pricing strategies are defined as the strategy by which prices can be set in such manner
that high customer can be attracted. In this context Rowlinson knitwear is using competitive
pricing strategy as they are tapping into a brand new market which is new to them and for sustain
in that market more customers are required to be attracted towards their services. This pricing
strategy enable Rowlinson knitwear to make their customer base prominent and deal with market
uncertainties in effective manner (Mothersbaugh, Hawkin and Kleiser, 2019).
Effective promotional efforts to establish awareness
In order to enhance awareness regarding market expansion in Germany, Rowlinson
knitwear is using various channels such as:
Traditional advertising: Germany is an advanced country where modernisation are
followed in appropriate manner. In this context Rowlinson knitwear is using emerging channels
to advertise their expansion and services to mass audience. In this context Rowlinson knitwear is
using social media and opting to publish advertisements in newspaper so as to demonstrate their
services in clear manner and to spread awareness regarding their services (Nguyen, 2016). This
channel of advertising is highly useful for Rowlinson knitwear as in pitching customer and
showing them real picture of their business and service offerings.
Social media: In Germany, social media is used in enormous manner so in order to
spread higher awareness; Rowlinson knitwear is using social media channels and grabbing
attention of mass audience from Germany. These methods are providing separate edge to
Rowlinson knitwearin attaining desired profit and desired sufficiency in market. Social media is
one of prominent channel that is used by mass people so this is the most influential for
Rowlinson knitwear to pitch high customers and retain them for longer duration as well.
Establish market presence and distribution choices
Establishing a market presence is very much important for any organization as this helps them in
building up a brand image into the market, their market share, increase in brand value, promoting

and advertising of hotel and much more (Quelch, 2017). The market presence of a brand can be
established through:
Identification of audience: The hotel needs to first identify the target group which they
have planned to target. For such identification the hotel needs to segment the market into various
characteristics or features and then from such groups or segments they need to choose that group
or segment which would provide the great profit and growth to them.
Determination of goals: The business needs to determine the major goal which they
have planned to achieve. This goal must integrate with the targeted audience. As in the case with
Rowlinson knitwear the company must clear its business objectives which they integrate with the
type of market or people they are targeting.
Forming brand persona: The hotel Rowlinson knitwear can build up their market
presence by building up a persona about their brand. Persona should be such that it
communicates well about the satisfaction a person or customer can get by availing their
hospitality services. The persona should be such that they must attract the customers and
differentiate their hotel from others.
Development of message: At this the hotel needs to develop the message which they
want to deliver to their targeted customers. The message should be strong and must show the
hotel objectives or goals which they have. Apart from this it should also be very much interacting
and engaging.
The distribution choices in an organisation can be establish through:
Searching for available alternative: In this the Hotel Rowlinson knitwear searches for
available choices which they have regarding distribution channels. In this step they will gather
all the information or data about distribution choices the organisation has.
Comparison of cost: In this step the organization compares the cost of the available
alternatives which they have. They compare them with cost and efficiency they provide to the
Hotel.
Ranking: The choices are rank in the order of preference by the Hotel. The first name
will be that which the hotel believes which would provide more efficiency and profit for them
and least would be the choice or alternative which gives least benefit to the organisation.

Plan to establish: At this the organization chooses the option/s which it believes will
contribute to the growth of Hotel and then they start to make the required planning for
establishing that choices in the Hotel distribution planning’s.
Key challenges to global expansion for the SME in this market
When a business is planned to expand in global market this is imperative to check their
feasibility so that to acknowledge needs and demands of that area or customer in which
expansion is going to take place. Market is laced with so many opportunities which can be
grabbed by businesses so as to enhance their market capture and sustainability as well. In this
context businesses are prone to make robust strategies through which major aims and objectives
of business expansion can be attained in sufficient way (Rexhepi and et. al., 2018). There are
numerous challenges which can be faced by Rowlinson knitwear in the path of their expansion
program in Germany which are examined as under:
Local competition
This is defined as the competition faced with already existing local competitors in the
area where business expansion is taking place. In the context of Germany, as the country is
already established organisation which is having numerous hospitality industry those are
developed in order to provide remarkable experience to their customer. In this reference
Rowlinson knitwear is going to face huge problem in managing this level of competition as
company is enhancing business at global territory so this is imperative that they will need to deal
with local competitors as well (Richelieu, 2016). In order to deal with this challenge Rowlinson
knitwear is required to establish prominent suppliers so that to make their services highly distinct
in nature by which they can make their own separate identity in the market.
Tax codes and compliances:
Taxes and their compliance is the another challenge which can be faced by businesses
those are expanding their business at international market. This is the prominent obstacle which
can be faced by SME as they are occurring with additional cost which may implicate their
profitability in negative manner. This is a major halt in expansion plan which may be faced by
Rowlinson knitwear in the journey of business expansion in Germany. In Germany unrushed
approach is used by government which makes applicability of taxes and tariffs tough for
emerging company. So before business expansion, Rowlinson knitwear is required to understand

and recognise tax policies and tariff plans which are existed in Germany so as to make their
expansion highly profitable and effective (Vilkina and Klimovets, 2019).
Supply chain risk
Rowlinson knitwear is an established organisation in UK so they have proficient chain of
supply chain in UK so this may create problems in updating their supply chain in Germany.
Being a manufacturing industry Rowlinson knitwear is operating their business in order to
provide high level of satisfaction to their customer and for this prominent supply chain
management is required by them so as to meet needs of customer in effective manner. There are
many supplies which are requisite for Rowlinson knitwear such a linens, clothing items and
many more. In case of delay in supply of these risk can be inhaled by business which may lead
them to lose their customer and profitability as well. In order to deal with this challenge,
Rowlinson knitwear is making proper record of their material consumptions and stock so as to
avoid any out of stock situation and meet all the desired expectations of their customers
(Silverman, 2015).
Operational risk:
In every country skills of workforce are varied which may create difficulty for the
company who is expanding their business in global places. In this regard labour is not easy to
find in Germany and at the same time they are lacking behind of skills and proficiency which
creates barrier for Rowlinson knitwear in meeting needs of customer and business as well. In this
case Rowlinson knitwear will have to hire more employees which may create risk for the
company to meet their monetary requirement. In order to mitigate this risk, Rowlinson knitwear
is arranging various training and development sessions so as to meet needs and demands of their
potential customers.
Global pricing strategies:
Pricing strategies are one of the prominent problems which can be emerged as the major
barrier for success of businesses at overseas market. In the context of Germany, the country is
considered as a developed country in which quality is a major constrains for customer to make
their buying decisions. As Rowlinson knitwear is facing huge competition with local competitors
and at the same time they will have to deal with their pricing strategy (Steenkamp, 2017). In this
condition the major problem faced by Rowlinson knitwear is setting up their prices as they are
required to attract huge customers in their new market segments.

Entering strategies
licensing: Licensing is the strategy which can be used by businesses in order to enter in foreign
market. In this another company in target company is given licence to use their property.
Licensing is associated with moderate investment by which agreement within two parties can be
framed. In this context Rowlinson knitwear can provide licence to some another company
existed in Germany in order to use their intellectual property and manufacturing process in order
to get entry in German market.
Joint venture: This is the most preferred market entry method in which strategic alliance is
framed between a local company and new entrants in order to share profits and risk in pre
decided manner. By this managerial skills of local companies can be used by new entrants in
order to align their path of success and to remove complexities of global market. With the help of
joint venture Rowlinson knitwear can get entry in to German market as this method is going to
minimise their risks and enhance their market share and customer recall value in short period of
time.
Greenfield investment: This is a type of FDI in which a company can initiate their business in
some country by their subsidiaries and by investing in offices, building and other operational
areas. This method is helpful in attaining high operational efficacy due to which high control
over new market can be exhibited. In the background of Rowlinson knitwear the company can
use this method to explore German market in order to attain business aims and objectives in
prominent manner.
By analysing all these factors this can be concluded that it is highly beneficial for
Rowlinson knitwear to expand their business in Germany as the company is providing high edge
services in economic aspect so this would be easier for them to garb attention of customer in
German market. By using joint venture strategy Rowlinson knitwear can enter into German
market in order to unleash and attain success. Besides this business environment of Germany is
growing which provides opportunities to foreign investors to invest in their country and sustain
as well. Rowlinson knitwear is running their business in growing stage so expansion over
Germany may lead them to touch new business heights and market success.
CONCLUSION
From the above detailed report this can be concluded that global marketing strategy is
one of the essential tool which can be used by businesses in order to expand their business at new

market territories. Global market strategies are helping a business to deal with changing business
environment due to which any fluctuations can be inhaled in effective manner by the business.
On the other hand these strategies are assisting business to eliminate negative impacts of
marketing activities in the country in which expansion is going to take place. Besides this there
are various barriers which are faced by businesses during their market expansion such as
problem in supply chain, problem in taxations and many more. These barriers are to be
eliminated by businesses so as to deal with diversified market conditions and to carry out
business activities in easy manner. Similarly by conducting PESTLE analysis external
competencies can be examined by business which enable the business to sustain and deal with
market competencies as well. These factors are helping business to grow and minimise
possibilities of failure so that to inhale success and cop up with external market situation in
composite manner.

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