International marketing management of companies' operations
Added on 2020-01-07
11 Pages3007 Words487 ViewsType: 487
MarketingPolitical Science
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INTERNATIONAL MARKETINGMANAGEMENT
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Globalization: Advantages and disadvantages.......................................................................1Environmental Analysis.........................................................................................................2Competitive Advantage of PRADA.......................................................................................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................8
INTRODUCTIONInternational marketing management is a multinational process of expanding a company'soperations in the global market. In the modern era, marketing does not involve only selling anddistribution process but also covers the aspects of finance, production and personnel activities.Here, Prada, an Italian luxury fashion house is an ample example to understand the significanceof international marketing in the contemporary world. It is a 103 years old fashion housespecializing in clothing, cosmetics, perfumes, watches and other fashion accessories. Companyfaces great influence on its market operations due to globalization and high levelcompetitiveness.Globalization: Advantages and disadvantagesConcept of globalization has recently developed to integrate economic, finance, trade andcommunication activities at the international level. There is free flow of people, commoditiesand services across all parts of the world without much intervention (Jean, Sinkovics, and Kim,2010). It is considered as an integrated system that has opened national and internationalperspectives to a broader outlook for exchanging of services and technologies. Due toglobalization, nations that produce a particular product in effective manner or specialize in it getexposure to enter into the global market. Different countries liberalize their procedures andprotocols related to export and import of goods and also permit people to move from one countryto another. Earlier, Prada was largely a domestic fashion boutique promoting retail fashion productsand accessories in the streets of Italy. Through globalization in the fashion retail industry,company also developed its brand image not only in the native market but also at the globalheights (Leonidou, Palihawadana and Theodosiou, 2011). This fashion house got benefitedthrough internationalization of its market. Some good aspects of it are as follows:It helps in making optimum utilization of materials and resources available across theworld. Designers and manufactures have many options related to raw materials to be usedin producing fruitful apparels and accessories.Fashion house is able to produce products and services at the most competitive price.Since, there are varied resources available in the market with reasonable prices andsometimes, even at very cheap rates. 1
Investors and shareholders have wide range of opportunities to invest in new venture.Capital generation has become much more easy and convenient process that providesadvantage to the firm to improvise its present product quality (Ghauri and Cateora, 2010).Also, there are increased employment generation activities in the economy. Businessentity is recruiting and selecting professional designers from different parts of the world.Although, there are few bad impacts of globalization over Prada, which are discussed below:First demerit for the company is that it faces extensive cut-throat competition in theglobal market. There are numerous iconic fashion firms already existing in the nativecountries along with few eminent business houses. Another disadvantage faced by the firm is inconsistency in buyer behavior. In the globalmarket, each country has its own varied culture, trends and preferences which companyneeds to identify and avail products accordingly (Advantages and Disadvantages ofGlobalization. 2016).Political and legal interference from government authorities of a country hinder thegrowth prospects of Prada. However, global agencies like WTO actively participate inregulating global business activities; therefore, the firm is affected by political and legalscenario.Sometimes designing, packaging and other promotional activities lead to theenvironmental pollution and degradation in that particular country where Prada’sfranchises operate. Environmental AnalysisIt is a strategic tool to identify all the external and internal elements affecting theperformance of organization. Environmental analysis entails assessment of different opportunityand threat levels arrived from these factors. Day-by-day, modern market is facing changes thatrequire proper analysis of these elements to frame strategies. Further, business is greatlyinfluenced by its micro and macro environment to perform routine operations. Prada alsounderstands significance of environmental analysis of its organization to operate efficiently inthe global market (What is Environmental Analysis?, 2016). Now days, company poses avaluable position in domestic and international market. It uses several strategic tools to study andresearch, one of them is – PESTLE Analysis. This is considered as bird eye view of the businessin context of its current market conditions. 2
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