Table of Contents INTRODUCTION...........................................................................................................................3 A Cross cultural Analysis................................................................................................................3 Hofstede Cultural Model........................................................................................................3 Social and cultural factors and the marketing mix...........................................................................6 Market entry strategies.....................................................................................................................8 CONCLUSION................................................................................................................................9 REFERENCES..............................................................................................................................10
INTRODUCTION Cross culture is considered as comparison of more than two cultures in terms of their different areas individualism, masculinity and qualitative lifestyle. While understanding this in business context, it is seen as the efforts of a company so that they can easily communicate with one another professionally with different cultural background, accepting such will give passage to businessopportunities plus, it will enhance the acceptance of product in market.(Ang and Van Dyne, 2015). This project is further extension of Course work 1 completed on topic Cross Cultural Analysis with brief description about different traditional techniques. In first report main chosen countries for differences are Japan and UAE. The main rationale of this project is to develop in depth understanding on the different cultures of two separate nation and their influences on one another in marketing activities. For complementing this report UNIQLO is taken as main company which is planning to expand in UAE with women fashion apparel for all age group of women. UNIQLO is Japan based company which is manufacturer, retailer and designer of casual wear. The company was founded in the year 1949 and is headquartered in TOKYO, JAPAN. This report provides in depth description on the specific cross cultural analysis technique applied for justifying differences on the basis of social and cultural factors of different chosen nation. It later examine social and cultural factors of UAE that could influence consumer behaviour of products or services. Also, its strategic implication will going to be shown on marketing mix of the company. At last, it will describe about different market entry strategies that will support in expanding effectively in UAE with minimum barriers. A Cross cultural Analysis Hofstede Cultural Model As reflected earlier in CW 1, Hofstede's cultural model is an appropriate framework, whichenablesindividualsandorganisationsofhowvalues,cultureandofferingsofan organisation could be influenced by the culture of different countries. It explores the difference between different nations, their norms and beliefs, and relatable impact on the products and services of organisations of other countries(Davidov and et. al, 2018). It is highly essential for an organisation like Uniqlo,to appropriately and effectively understand difference within cultures and the effects that their offerings could likely experience (Hofstede COUNTRY COMPARISON, 2019). The firm belongs to Japan is willing to offer fashion apparels for women
in UAE. Both the countries and significant differences in their perceptions as well as their cultures, which would likely impact the offerings of Uniqulo, and hence, a systematic analysis of this model in this context is discussed below: Individualism Versus Collectivism: This element within the techniqueis related towards individuals within a country that are interdependent towards their society.To further elaborate, it is associated with how people perceive their self image. For instance, in collectivist societies, individuals have a strong belonging in groups, which encourages them to think appropriately about the society before their personal interests(Maignan, 2001). In contrast, within individualistic societies, people tend to consider themselves as well as their direct family members only. In context of Japan, the society within the country is inclined towards individualism, wherein, the society is inclined towards having a self opinion towards how to lead their lives. However, a sense of society is somewhat present within their decisions, which guides them to take appropriate decisions in their lives.This could really be well reflected within the offerings by Uniqlo, which is one of the most trending companies within Japan. Its fashion apparels are popular as well as accepted by women of the country, which reflects, that although they wear traditional clothes too, there is an effective level of acceptance for modern clothes too. In relation with UAE, it is a highly collectivist society, which means that they have a strong inclination towards the groups and society prevailing within the country. They are quite loyal towards the norms as well as beliefs and attitudes that are adopted within a society. Within the country, there is a strong level of prohibition towards fashion apparels in women, as it is not acceptable in their religious beliefs, along with the perception of society. There are changes coming within the same, however, organisations like Uniqlo could be seriously affected due to this factor. They will be having a hard time in selling their offering due to unaccepted status of fashion apparels within the country, as it is definitely against their social and cultural value, as well as quite different from the cultural norms of Japan.. Masculinity Versus Femininity: This element within the cultural model reflects the preference of the society towards the orientation and elements prevailing within the nation. For instance, the masculinity face of the dimension effectively represents that the society is perceptive towards heroism, assertiveness, achievement, material rewards, etc. this means that society is highly competitive in nature. In
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relation with femininity, the society is concerned more towards modesty, cooperation, and considerate towards the quality of life of society. In relation to Japan, it is a highly masculine society, where competition amongst several groups is highly evident. Hence, the quality of products offered by organisations, is based on competition, as well as they ensure competitive pricing strategies in relation to staying ahead in the market. Similarly, in relation to Uniqlo, it offers its product at a lower rate than its competitors within Japan, which allows the firm to grab a larger market share. It reflects that the organisations within Japan are quite masculine and the society focuses on the aspect like competition, which enhances such strategies within its market. UnitedArabEmirateshasabalancedsocietywhenitcomestomasculinityand femininity. Thus, while the society prevailing within the country focuses on competition, it also focuses on quality of life(Davidov and et. al., 2018).However, both these aspects reflect on the perception towards the offerings of Uniqlo in the country. For instance, since there is an evident, yet minimal competition, society within the UAE might perceive the apparels offered by the organisation as low quality, due to the current pricing strategy adopted by them within their niche markets. Furthermore, since there is a minor but evident difference between cultures of both the countries in terms of masculinity as well as femininity, there are chances that the market perceives the products of the organisation differently. Uncertainty Avoidance: This factor in Hofstede Cultural model technique, deals with the extent to which members within a country feel uncomfortable in context of ambiguity or uncertainty. This appropriately focuses on the actions which a country tends to undertake to avoid certain barriers or roadblocks in future or taking risks along with time. Japan is one of the highest uncertainty avoiding nations in the world. Societies and organisationswithinthecountryarequiteinclinedtowardstakingprecautionarysteps beforehand, along with appropriate and effective actions to avoid any sort of mishaps that could negatively impact their offerings and sustainability within the market. Thus, the market focuses on researching the environment and analysing future, then they produce their offerings which could be well adopted and accepted within the markets. In relation to United Arab Emirates, they have a very high inclination towards having rigid behaviour and codes of belief, which is protective towards their moral values, along with
their culture and social belief. Moreover, the society and culture of the country are quite intolerant of the unorthodox behaviour or ideas, which might interfere with their attitudes or cultural beliefs(Dawkins and et. al., 2016).Thus, this difference between the cultures could have a significant impact on the Uniqlo and its fashion apparels within this country, as there is a resistance towards innovation, change and experiments, which is contrast to the cultural and social beliefs of Japan. Moreover, people does not tend to shift their preferences in terms of clothes, to avoid any sort of uncertainty, as fashion apparels provided by the organisation, challenges their social beliefs as well as cultural norms, due to significant difference. Hence, through this analysis, it could be stated, that there is a high difference between social and cultural beliefs of UAEfrom that of Japan, in terms of uncertainty, masculinity as well as individualism, which requires a detailed insight in terms of crafting strategies which closes the gap. Social and cultural factors and the marketing mix Marketing mix is considered as an effective framework used by business organisation to influence buying behaviour of their customers. It includes combination of different factors such as product, price, promotion and place which are controlled by organisation (Vijver, Van Hemert and Poortinga, 2015). Simultaneously, the impact of the culture is shown over the products and services of the organisation along with different determinants of the market mix. Adherence of the specific code of conduct and norms in UAE have impact over the product. Also, determined that quality of life is high in UAE which further influence the pricing and promotional aspect of an organisation. Overall, different determinants and factors are present in UAE which are totally different from Japan and having significant impact over each and every aspect of marketing mix. So, finally to attain success important for UNIQLO to modify their each and every factor according to the culture of UAE so that they can successfully establish their business. All of these factors are described as below effectively: Product:UNIQLO would target the population of foreign country (UAE) by launching ethnic fashion wear. This has been decided upon by the management looking upon the trend prevailing within the new country which restrains women from wearing extensive western wear. This will provide assistance to the entity in effectively appealing to prospect buyers within UAE and thereby establishing strong brand image there.
Price:Management of UNIQLO, will going to offer ethnic wear at higher prices. This is because, they will targeted premium class people who are seeking for high quality ethnic wear in UAE without concerning about price. The main reason using this strategy is to simplify their expansion segregated and succeeding (Ordóñez and et. al., 2017). Promotion:Here, the company is suggested to adopt their own hi tech promotional technique while doing business expansion in UAE along with usage of IOT. The company will use digitalisation in their promotional technique with the combination of QR scanning as well as seasonal discount in order to provide maximum benefit to customers, This will ultimately be helpful in grabbing attention of large number of customers from UAE towards UNIQLO. Place:With the help of Hi tech promotional techniques, UNIQLO starts selling their products and services through online medium in order to make it easier for customers to grab customers. Usage of outlets as well as Online medium will help UNIQLO in attracting customers influence towards them in effective manner. Process:Looking upon the constantly evolving trend of digitalisation within UAE, the management of UNIQLO has decided to make use of digitalised procedures so that a large base of audience can be appealed at any point of time. With this, the firm would be able to create a positive image of its offerings among the people. Physical evidence:The brick and mortar style stores of UNIQLO tend to serve as the physical evidence for the respective organisation whereby the ethnic fashion wear would be made available to the customers (Soldatenko and Backer, 2019). By ensuring ease of access, the firm would be able to draw the attention of pool of prospect buyers and thereby inflate its revenues by a fair margin. People:UNIQLO will consider employees as its people because they are the one who will make their business successful in UAE. Here, major concern of management of UNIQLO to only those personnels who is having satisfactory working experience in different culture. This will help them out implementing their business activities in UAE in effective manner. Physical evidence: Market entry strategies Business organisation's who plans to expand their business in international market adopts different market entry strategies. There are different types of international market entry strategies that helps companies in entering into a foreign country with minimal risks. The main type of
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market entry strategies are Direct exporting, Franchising, Joint venture, Strategic alliance, Licensing etc. It is essential for business UNIQLO to choose right market entry strategy in order to implement their business effectively with less number of complication. Explanation of some important international market entry strategy are described as below: Direct exporting:This refers to the selling of products and services in another market place by using own resources. In this strategy, main motive of business organisation is to execute their sales programs in a foreign country with the support of sales agents and distributors available at that marketplace (8 Strategies to Enter a New Foreign Market, 2019). UNIQLO could go for this strategy by finding out suitable agentsin UAE who will sell their fashion apparel. This market entry strategy is going be beneficial for this company as it will enhance sales performance of organisation that will its income source as well.The main drawback of this entry strategy is that selected agent might cheat on company. This will affect development of their brand name in foreign country.This can only get affected due to environmental factors such as any natural calamities which might occur and cause several problems for company. They have to keep proper effects on such things like keeping all products insured in case of any such miss- happening. This will keep the company in correct working zone and avoid any sort of loss while working in new zone. Strategic Alliance:The following marketing strategy is used in case when two or more businesses are bind into a contract about the use of resources of one another.This market entry strategy states that two or more businesses bind into a contract so that they can use availability of resources of one another(Mar MirasâRodrĂgue and et.al., 2015). The following strategy is suitable for UNIQLO also by combining with already established business in UAE, it will be possible for UNIQLO to have competitive advantage and knowledge of market with the help of that organisation. The main advantage of this strategy is the use of resources of one another which makes its easier for them in performing business activities. In drawback, it is included about the lack of secrecy in this strategy included in drawbacks. Joint Venture:It refers to the contract in between two or more companies so that they could make a new company. In case of UNIQLO, the following entering strategy will also be suitable so that in starting time, the business could be developed with the help of UAE operating companies and once the business is setup properly and market conditions are known properly than it will be possible to operate the business separately. In the main advantage of this strategy,
it is about the sharing of profit and losses by the company which reduces the risks and burden on the company. Talking about its drawbacks, tit is included about the coalition of objectives of different companies that led to inefficient working of the new venture. This has direct effect on main target of market, there are several circumstances which have to be considered while working in market and influential characters which bifurcate themarket stargates have to be given in the context. Franchising:In comparison with the other modes of entering into the new market for UNIQLO, the best strategy will be Franchising. It is the process under which one organisation gives right to other person to do business in the name of that company under certain special specifications in order to produce some product or service(Feskens and Hox, 2018). The main advantage of this strategy is that the profitability level is increased in comparison to other newly established businesses because of good brand image and goodwill of the company. In the drawbacks, it is included about the requirement of high initial investment needed which is required in completing initial formalities, paperwork and many other things which makes it disadvantageous to make use of. On the basis of above described different strategies, it has been analysed that Franchising is best feasible strategy for UNIQLO while expanding their business in UAE with fashion Apparel. It can be said that market of UAE is good for women fashion apparel that will support them in developing brand name in foreign country. Level of control is higher for franchisees for UNIQLO as they are dealing with customers directly. Level of risk is lower for UNIQLO because here whole responsibility of work is on franchisee which reduces issues for franchisor that is UNIQLO itself. This market entry strategy is also beneficial for UNIQLO as it owes capability of dealing with different market situation. As a result, it is safer for company in securing themselves from non good situation. CONCLUSION From the above mentioned report it has been analysed that business expansion is an effectiveapproachusedbybusinessorganisationsforimprovingtheirorganisational performance and raising their profitability effectively. Hofstede cultural framework is identified as an important technique that is helpful in analysing cultural differences between two nations and how these affects business performance of that company. Franchising is founded as an
effective market entry method that is helpful for company in business expansion with minimum number of risks.
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