International Business Strategies Essay - Dune Group

International business
strategies

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Dune London recent internationalisation strategy ......................................................................1
2. Strategic proposal.........................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Global expansion strategies are implemented by an organisation in which they desire to
expand their business in overseas market to capture more opportunities for growth and
development. In this context, the following assignment will demonstrate brief understanding
about global expansion strategy with reference to Dune London. The organisation desires to
expand its business operations in Italy. By analysing key literature, critical application of
theoretical framework will be identified in the report. Eventually, strategic proposal will be
produced that will help in justifying the future direction of international growth strategy in both
short and medium term.
1. Dune London recent internationalisation strategy
According to Clarke and Boersma, (2016) when an organisation gains immense
reputation in the domestic market or local economy and have capabilities to enlarge their
business outside the boundary of own country in order to enhance business growth and
development is referred to the process of global expansion. In order to raise the profitability and
productivity of the company, management tends to enhance their business operations by
establishing branches and subsidiaries in different parts of the world. Dune London is one of the
most influential brand of Dune Group in fashion and accessories. Headquarters of organisation
are located in London which is also known as fashion capital of the world.
The management has over 20 years of experience in the footwear industry and has grown
through a passion and dedication to excellence in product development and in house design.
Dune London has global presence in many countries including US, France, Germany, South
Africa, Ireland, etc (Cavusgil and Knight, 2015). In addition, it delivers goods and services in
more than 175 countries through effective online supply chains. As per Parc and Kawashima,
(2018) in order to sustain in the competitive environment, it is essential for the management of
business organisation to make initiatives in order to expand their business globally. Wild, Wild
and Han, (2014) argued that expansion of business in overseas market is not easy as top officials
have to analyse the foreign market, conditions, laws, people behaviour, trends, economic
condition and many macro and micro factors. This consumes lots of time and money of the
company (Beamish and Lupton, 2016).
Dune London wishes to establish and increase their business operations in new market
country which is Italy. In order to gain competitive advantage, the management has appointed
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new international director named James Radford in order to manage the international expansion
of the organisation efficiently (Man, 2017). The key competitors of Dune London are Kurt
Geiger, Russell Bromley, TIM and The Muck Boot Store (Clarke and Boersma, 2016). Every
organisation has different strategies for establishing global presence, but their motive remains
same which is to increase profits and revenue through promulgating about brands and products.
According to Cavusgil and Knight, (2015) the management of Dune London prefers hierarchical
order to step into the global market. The same approach will be utilised in order to establish
organisation in Italy.
In the first step, management prepares a business plan which states the needs, goals and
objective of establishing global presence. It's essential to assess the readiness and commitment to
growth internally before management of Dune start. The next step is conducting foreign market
research and identifying international markets. Here, the management of Dune analyse the
potential markets where organisation can conduct their business operations. The third step is
deciding and evaluating the methods of establishing organisation abroad. Numerous options
available for management such as opening subsidiaries, working with agents, online delivering,
etc (Paul, Lang and Baumgartner, 2017). Moreover, management have to select appropriate and
suitable method in order to enhance the effectiveness (Bendell, 2017).
The fourth step is to negotiate deals and navigate the legal morass of exporting. Fifth step
is to tap government and private sources of financing and figure out ways to make sure
organisations are getting paid. The last step is to move goods to international market, where
management of Dune eventually make global presence in the desired country. Morschett,
Schramm-Klein and Zentes, (2015) elaborated that management of organisation who wishes to
enlarge their operations in global market have to face various adversities in order to enjoy
enormous rewards. Initiation phase is always difficult and this phase only decides whether the
organisation will be able to sustain in the global environment or not. Many organisations failed
to pass this phase and eventually dissolve their corporate office in overseas market. According to
Bendell, (2017), Italian customers are demanding quality goods and services, but less concerned
with organisation operating hours, loyalty programmes, special offers, etc. Customers prefer the
precise quality of products they paid for and after sales service they receive. Majority of
population prefer to save money and high inflation in recent years lowers the purchasing power
which eventually led to decrease in customer confidence (Italy: Reaching The Consumer, 2018).
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