Report on Globalization 2022

Running Head: GLOBALIZATION 1
Globalization
(Student’s details)

GLOBALIZATION 2
Executive Summary
The following report describes the comparison between attractiveness of two potential countries,
Singapore and Sweden, for business expansion of Calibre clothing company. Calibre is an
Australian company which was established by Gary Zecevic in year 1989. Calibre men clothing
offers cloths and accessories for men. Clothing part includes shirts, t-shirts, suits, jackets &
blazers, knit wear, pants, jeans, and shorts. Accessories part includes bags & leather goods,
jewelry, belts, ties, scarves, socks and sunglasses. It also provides unique and classy style shoes.
Calibre wants to expand and develop the business through international business. Company
selected two countries which are Sweden and Singapore. This report writing analyzes all the data
of these countries in which it includes potential target markets, economic condition, political
condition and business environment of Singapore and Sweden, market potentials and comparison
between Sweden and Singapore.

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Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Potential Target Markets..................................................................................................................4
Economic Conditions.......................................................................................................................5
Political Condition...........................................................................................................................6
Business Environment.....................................................................................................................6
Market Potential...............................................................................................................................7
Comparison among Sweden and Singapore....................................................................................9
PESTLE Analysis to compare Singapore and Sweden..............................................................10
Political factors.......................................................................................................................10
Economic factors....................................................................................................................10
Social factors..........................................................................................................................10
Technological factors.............................................................................................................11
Environment factors...............................................................................................................11
Legal factors...........................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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Introduction
Businessmen and marketers use many types of techniques to estimate the market
potential in international market. To develop the international business, analyze the comparative
attractiveness of two potential countries is important. International marketing refers to
undertaking business in more than one country. Advanced technology and fast communication
give easiness to international business. International markets are very attractive and have
potentiality of higher profit.
This report will describes about comparative attractiveness of two potential countries for
international business expansion, using the example of Australian company Calibre. The
Australia based company Calibre hired L.E.K consultancy for their national and international
business expansion Calibre is Australia‘s leading fashion brand for men. It was established by
Gary Zecevic in year 1989. Calibre men clothing offers cloths and accessories for men (Calibre,
2019). It operates the business through stores and e-commerce website. It has many stores in
Australia and now company want to expand the business internationally.
The following report analyses the business environment, political and economic factors
and market potentials of Sweden and Singapore for the business expansion of Calibre clothing.
The main aim of this report is identify the best choice for Calibre men clothing.
Potential Target Markets
The target market of Calibre is men 18-40 years of age, with mid-range incomes. The
target customer is very fashion-forward and trend-conscious, residing in an urban area. Calibre
men’s clothing’s customers are certainly sensitive towards having the most up to date and
fashionable clothing and accessories but at an affordable price. Calibre men clothing want to
expand the business. For this purpose, Singapore and Sweden is best option to choose because
these both companies follow latest fashion trends and population of these countries choose classy
outfits. These factors are good for Calibre.

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Economic Conditions
The economy of Sweden and Singapore has stable and highly strong reputation. Both
countries are highly developed and maintaining the high standard of lifestyle and living. The
economy of Singapore maintained the openness. The economy of Sweden and Singapore is
highly dependent on international business. As per the recent World Bank Human Capital Index,
Singapore chosen as the best country of world to develop human capital.
GDP of Singapore raised 2.9% in 2018 and it is expected to grow 2.5% in 2019. The
economy of Sweden recorded a high growth between 2016 and 2018. GDP of Sweden grew
2.4% in year 2018 and expected to grow 2.2% in year 2019 and 2.0% in year 2020. From year
1965 to 2009, the economy of Singapore raised at the rate of average 5.253% per year
(nordeatrade, 2019a). Swedish and Singaporean economies are very stable and these both
countries increasing the globalization day by day. Constant growth of economy forecasted the
stability in countries’ economies.
Sweden and Singapore economies offer unique strength as well as challenges for Calibre
men clothing. In these days, Sweden facing unemployment in youth but it decreased last year
from 6.7% to 6.3%. Still it remains many challenges for the Sweden government. In Singapore,
unemployment rate is 2.82% and it shows the strongest side of economy. The market stability of
Singapore is great with 0.96% rate of inflation. High inflation indicates the decrement in the
value of currency which impact imports and exports of country (nordeatrade, 2019b).

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Political Condition
Political condition of Singapore is known for its stability and it is dependent on business
for economic growth of country. Since the nation is subject to exchange for its financial
development, the PAP concerns itself dominatingly with worldwide exchange its policymaking.
This is the main reason behind openness of Singaporean economy. This characteristic increased
the access of market for the Calibre (focus-economics, 2019).
Political condition of Sweden follows multi-party system of governance. Administration
of Sweden is self- declared feminist government and it is highly follow the equality of gender.
Singapore and Sweden maintain the good business relations with European country Australia.
Sweden and Singapore faced many political risks to establish globalization. It can impact the
international business of Calibre. Singaporean and Swedish governments faced many problems
in migration of local population. Political freedom gives protection to local and international
business (worldbank, 2019).
Business Environment
Conduct business operations and activities in Singapore and Sweden are easy and
straightforward for other countries. In 2017, the Business report of World Bank ranked
Singapore as second and Sweden as ninth in terms of simplicity and easiness of doing trade.
There are some rules of government of both countries; assets and taxes management, business
obligations and many more. Sweden and Singapore maintain the transparency in legal rules and
regulations to improve the values of business environment and inflow of investments. To
develop the business, Singaporean economy is very business friendly.

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Market Potential
Local population of Singapore and Sweden follows the high fashion trends. Sale of
clothing has continuously increased year by year in both countries. Population of Singapore is
spending 6.4% of their income in clothing. The clothing market of Singapore is expected to grow
19% annually.
Sources: (statista, 2019a)
As per the above graph, it is forecasted that revenue of Apparel is increasing by year to
year and it will be grow high in Singapore.
Source: (statista, 2019a)

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Above given graph showing the number of customers in clothing segment in Singapore.

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Source: (statista, 2019b)
The above graph clearly shows the increment in purchasing of apparel in Sweden.
Source: (statista, 2019b)
The above data analyze that the number of users is expected to amount to 7.5m by 2023
in Apparel segment.
The consumers of Sweden increasingly interest in the clothing, fashionable and classy
outfits. But also there are some threats for Calibre men clothing and the threat is changing
fashion trends and styles. There is a huge difference between styles and fashion trends of
Singapore and Sweden from Australia. Sweden has the huge migration of Muslims who wear

GLOBALIZATION 10
simple and traditional clothing and it is a drawback of Sweden to develop the business of
clothing.
Comparison among Sweden and Singapore
As the report analyzed, Sweden and Singapore, both are very different countries from
each other and present the many features and limitations to Calibre men clothing. To decide,
which country is a better option for Calibre and their clothing, analyze four bases are very
important which are market potential, economic condition, business relations and political
condition.
Singapore Sweden
Variable Weighting Score/10 Weighted
score
Score/10 Weighted
score
Market potential 30% 5 1.50 7 2.10
Economic position 25% 7 1.75 5 1.25
Trade relations 25% 8 2.00 6 1.50
Political stability 20% 7 1.40 6 1.20
100% Total: 6.65 Total: 6.05
As per the table, market potentiality of Sweden is high as comparison to Singapore
whereas economic condition of Singapore is good. In case of trade relations, Singapore scores
high from Sweden. Singapore is more stable in political condition.
Market potential consider as the demand of product which is high in Sweden. Singapore
ranked low in this category. Economic condition shows the stability of country economy which
is more important to analyze the market. In this category, Singapore ranked high. While
economy of both countries is maintained. Sweden ranked low in this category because it has
higher unemployment and it is big risk for business. Singapore presented more stability in socio-
economic.
Trade relations of Singapore are high and trade relations are very important for
globalization. Because business agreements, product tariffs impacting the international trade.
Once again, Singapore ranked high in political stability as compare to Sweden. Both countries
have different political situations. Main points which are focused in political stability are
unemployment, inflation rate and economic indicators.

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PESTLE Analysis to compare Singapore and Sweden
Political factors
Singapore Sweden
 Political Risk is low
 Stability in government
 Value of free speech
 Proper rules and regulations
 limited dissemination of content
 Constitutional monarchy
 Unitary state, presently divided in 21
countries
 Every country has government
appointed board
 Restricted policies
Economic factors
Singapore Sweden
 Diversification in economy
 Per- capita income is high
 Educated and motivated employees
 Flourished industries
 Low labor cost
 Maintains a sound fiscal support
 Greater labor force
 Economic structure in recession
 Capital markets are efficient
Social factors
Singapore Sweden
 Follow traditional family values
 Work hard residents
 High purchasing power
 Literacy rate is high in country
 Highly developed welfare country
 Support to free business
 Property rights are stable
 Social spending is high

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Technological factors
Singapore Sweden
Technological advancement
High use of social networking
Higher broadband services
IT encourage international companies
 Fastly growing in technology
 Most of the people connected to TV
cable
 Muslim migrated people not use latest
technologies
Environment factors
Singapore Sweden
 Transport pollution is high
 Industrial carbon dioxide emissions are
high
 Water quality is good
 High industrial pollution
 Upgraded environment protection law
 Use right manner to dispose wastes
Legal factors
Singapore Sweden
 Transparent rules and regulations
 Legal regulations to support
development
 Tax issues
 Import and Export procedures
 No any transparency in rules and
legislations
 Government only concerned with only
police matters
With the help of PESTEL analysis, report examines the factors of both countries; political
factors, economic factors, social factors, technological factors, environmental factors and legal
factors.
As per the above analyses, it is clear that Sweden and Singapore both have strong
economy. This is a positive factor for business of Calibre men clothing. The comparison of data
determines that Singapore is strong option for international trade and globalization. With this

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comparison, report describes the advantages and disadvantages to Calibre men clothing to
expand and develop the business internationally. The market of Singapore has great business
relationships with Australia. But the market potential in Singapore is less than Sweden.
Conclusion
This report analyzed the data of Singapore and Sweden for the comparative attractiveness
of potential countries for the business development. In this report Australian based company
Calibre is depicted as an example and company wants to develop or expand the business through
international trade. Singapore’s economic condition is very stable which is good for business but
market potentiality of Sweden is attractive which is very helpful to earn profit in business.
This report includes potential target markets, economic condition, political condition and
business environment of Singapore and Sweden, market potentials and comparison between
Sweden and Singapore. This report also used the PESTEL analysis to analyze that which country
is best to expand the business for Calibre men clothing.
On basis of the analyses, it can be concluded that Singapore is more beneficial market for
Calibre men clothing but Sweden has also potentials for clothing company because population of
Sweden follow the latest fashion trends. Moving further, Calibre men clothing must use another
marketing plans to critically analyze both the counties Singapore and Sweden. And with the help
of marketing strategies, company can improve the market potentials and take benefit for expand
the business.

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References
Calibre. (2019, July 25). About us. Retrieved from https://www.calibre.com.au/pages/about-us
focus-economics. (2019). Singapore Economic Outlook. Retrieved from https://www.focus-
economics.com/countries/singapore
nordeatrade. (2019a, July 26). The economic context of Singapore. Retrieved from
https://www.nordeatrade.com/fi/explore-new-market/singapore/economical-context
nordeatrade. (2019b, July). The economic context of Sweden. Retrieved from
https://www.nordeatrade.com/dk/explore-new-market/sweden/economical-context
statista. (2019a). Fashion. Retrieved from
https://www.statista.com/outlook/244/154/fashion/singapore
statista. (2019b). Fashion. Retrieved from
https://www.statista.com/outlook/244/154/fashion/sweden
worldbank. (2019). Overview. Retrieved from
https://www.worldbank.org/en/country/singapore/overview