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Managing across boarder Assignment

   

Added on  2021-06-14

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Managing across boarder1MANAGING ACROSS BOARDERName:Department:School:Date:

Managing across boarder 2Executive summary The global fashion center of gravity has long been moving towards east. Asia economies have encountered robust economic growth. The GDP advancement in Asia remains much higher than in Europe and the US. Accompanying the improvement is the increase of the Asian consumer fashion budget. Asia influence is growing not only due to its roles as field of the sales and novel users but also the regions experiencing an increase in the source of innovation and technology. China is one the world active digital investment and startup surrounding.The paper analysis the strategic processes and challenges Billabong has faced as it is expanding business across the border. Billabong was publicly listed in 2000 but its resultant buying spree included brands like cult skate brand element and watch company Nixon had consequences for the parent company. After steps pushed the company to peak valuation, there were serious cracksin the acquisition strategy. This led Billabong selling off Nixon so as to fight back their existence. This caused store closures, staff lay-offs and growing debt. There are refinancing programs for the company. The company considered a deal with US loan from an Altamont-led consortium. The paper analysis how company’s management is working hard to end a long process that has caused distraction, impacted on staff morale. The study also involves discussion of critiques and approaches of billabong international limited to internationalisation.

Managing across boarder 3Managing across boarderIntroductionBillabong international Ltd is a leading stake wear and Surwear Company, and one of Australia’s iconic brands. From humble beginnings on the Gold coast in 1973, it has advanced through international diversification, expansion and acquisition to become a leading internationalsurf wear grown its commitment to the international board sports industry through athlete sponsorship, and management and support of industry bodies (Deresky 2010, pp. 45).Fast fashion brand are well-known for quick reaction to shifts in trends and managing product life cycles that are frequently measured in only weeks. The fashion market in japan is shrinking, but China’s is rising. There is an intense on the competition in china; however, the country is close to japan. The potential of the fashion market in china is huge, with more affluentusers willing to spend up on the Australian fashions. However, the china market is more sophisticated than many anticipate. In the current year’s big names such as H&M and Zara were reported to have mislabeled their merchandise or failed to meet required colour-brightness standards. Hong Kong, however, expects fast fashion will continue to be a fast-growing market on the mainland for a long time in spite the prospect that more users, particular in the first-tier cities, may turn to other alternatives for better exclusivity and quality (Bartle 2011, pp. 17). Through company’s processes, there was acquisition of new brands and retail outlets so as to move beyond the wholesale business. The company acquired the von zipper, an eyewear brand and hard good brand element in 2001 (Lasserre 2017, pp.134). In 2004, the company acquired kustom surf shoe brand. The following year the company acquired Nixon Inc. which was a brand of watch and accessories in the board sports market (Galla 2015, pp.163).

Managing across boarder 4Billabong Company decided to use direct operations in international operations in order to improve marketing and promotion of their products (Millward 1995, pp.7). Direct operation also helped the company to gain higher margin income instead of royalty payments the company was getting before. Billabong facilitated an efficient market expansion in diversification of its product line. The company facilitated this through management information system, quality control, financial oversight and economies of scale through product sourcing (McHenry and Welch 2018, pp.95). The company improved its working staff, employed account managers and in-store merchandisers to oversee in-store presentation and commissioned sales persons were made direct employees of billabong with regular pay with sales incentives (Beverland 2018, pp.149). Billabong Asian market analysisIn 2013, the firm was in series trouble. After a couple of years of poor results, Billabong international lost $859.5 million last financial year (Beverland 2018, pp.148). It stock price had tumbled from once high of about $18 to a mere 40%. Billabong risked going bankrupt before a bail out by an American investment group Oak tree, providing a $386 million debt and equity rescue package last September.The following are the situation of the billabong in the Asia pacific; eComm undeveloped,rapid decline in Australia dollar impacting profit margins, Japan soft due to the warm winter. One of the actions of the billabong is that it moved it multiband team to Burleigh Heads headquarters for better integration with brands and installed novel leadership. The other action was investigating to drive RVCA growth. Also, it continued rationalisation of store fleet and aggressive procedure to improve margins. The other action was it continued to drive yield and

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