Business Decision Making In Global Market | Assignment

Added on -2020-02-12

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GLOBAL MARKETING
Table of ContentsExecutive summary................................................................................................................1Country selected.....................................................................................................................1Entry mode selection..............................................................................................................2Target market..........................................................................................................................5Marketing objectives..............................................................................................................8Marketing strategies to reach marketing objectives...............................................................9Recommendations................................................................................................................12REFERENCES..............................................................................................................................13
Executive summaryGlobal marketing is the process of promoting and selling the products at internationallevel. The current document has remained successful in explaining different aspects of globalmarketing. Uniqlo is going to enter into Mexican market for which different decisions requiredhave been discussed in the report. Apart form this, the said firm needs to focus on it pricingstrategy in order to attract large customers. Additionally, the venture also needs to attain itsmarketing objectives with the use of different tactics and strategies. Country selectedIn this present report, Uniqlo is selected for analysing the business environment andcompetitors in Mexico. Whereas, Uniqlo is the designer, manufacturer and retailer of theJapanese casual wear. The said organization has been a wholly owned subsidiary of Fastretaining Co. Ltd. In order to entre in Mexican market the firm needs to analyse the businessenvironment of Mexico. The aforesaid country is one of the easiest countries for doingbusinesses in America. Additionally, the government of Mexico is trying to maximiseinvestments but the policies related to tax are not business friendly. The consumer market inMexico provides good opportunities for the marketers in order to consume goods. In terms ofGDP, the economic environment is stable and 3.8% of hike is seen in GDP of the country. If themanagement of Uniqlo aims to enter the Mexican economy then it is required by theorganization to analyse the market. However, the cited economy has different kinds of small,medium and large firms who manufactures several types of products and services (Armstrongand et.al.,.2012)In addition to above, the investment regulations in Mexico has been encouraged by thegovernment to enhance the foreign investment. There are certain industries for which foreigndirect investment are restricted in Mexico such as airlines, telecoms and energy industry. If thesaid firm wants to enter in this market then it will require to study the Mexican market. Mexicois the 6th easiest place to do business because it has improved its overall ranking by givingpermits for constructions, credit and trading across the borders. However, the said firm belongsto Japan where it can enter in the Mexican market. Apart from this, there is huge level ofcompetition which will be faced by Uniqlo in Mexico. The competitors are Lorena Saravia,1
Oxxo, Superama etc. It has been witnessed that the said economy is well versed with differentbrands. As a result, the management of Uniqlo is going to face intense competition in Mexico.The reason is strict investment policy framed by the government. It can become a threat for thesaid firm. Apart from this, the aforesaid firm has direct competition in apparel market withGiordano. It is one of the fast fashion organization which sells clothes at appropriate rates(Athaide and Klink, 2012).In this context, the firm also have some indirect competitors due to which theorganization is also facing strong competition. If the management of Uniqlo is deciding to enterinto Mexican market then the venture is required to focus on attaining customer attention. Thecited organization needs to focus on market share of clothing industry in US. As per theresearches, there is increase of 117.21% over 1996. The stated economy has improved itsmanufacturing in clothing industry. This has resulted in increasing intense competition betweendomestic companies. Therefore, the said firm needs to study market and competitors to enter inthe market (Berthon and et.al., 2012).Entry mode selectionUniqlo aims at entering in the Mexican market for which the cited organization needstake certain decisions. Before entering in the new market, it is essential for the statedorganization to consider certain factors. These factors are ownership advantages, locationadvantages and internationalization advantages. On the other hand, ownership advantages arethose benefits which a firm may have due to holding the resources. In these terms, the saidorganization has clear vision of its brand as it provides quality clothes to the customers.Additionally, they are also focused on price factor which helps in attracting large number ofcustomers. Apart from this, the organization makes innovation in the products. They use qualityfabrics at the time of designing products. Apart from this, with relation to location advantagesthe organization needs to decide where it can get cheap labour, logistics and raw material atlower cost. This will assist organization to manufacture its products at the best possible lowercost (Sullivan Mort, Weerawardena and Liesch, 2012).Additionally, the organization has various modes to enter in the Mexican market.However, the firm have different modes of entry such as exporting, licensing, franchising andspecial modes. On the other hand, exporting consist of direct, indirect exports and intra-corporatetransfers. In addition to this, licensing consist of international licensing. As a result, the firm2

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