International Marketing Analysis

This assignment examines the international marketing strategies employed by Michel Kors. It delves into the impact of macro-environmental factors such as buyer power, supplier power, competitive rivalry, threat of new entries, and threat of substitution. Furthermore, it applies Porter's Value Chain Framework to analyze Michel Kors' operational activities, highlighting their strengths and potential areas for improvement in the global marketplace.

International Marketing

Table of Contents
INTRODUCTION............................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................4
TASK 3............................................................................................................................................6
TASK 4............................................................................................................................................8
TASK 5............................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES...............................................................................................................................10

INTRODUCTION
All world is got collective by the globalisation, business and corporates who are working
in the domestic market, they are also want to deal in the international market. This is creating an
impact on those companies which are working in the domestic market and they also wants to
make their presence in the international market. These domestic companies want to enlarge their
business and they want to export their products to make new consumer market and to make more
profit by the extra sale. In the present time, each and every company is working in the
international business and mostly deals in to export their goods and services.
The present report is based on the fashion industry, this is a well known international
business industry and this mostly concerning about the global market. This industry is containing
clothes, jewellery, eye wear and footwear etc(Sullivan Mort. and Weerawardena., 2006.). This
sector have impacts on international trends and styles of clothe. There are many big names
fashion designer which have the potential to make changes in the dressing styles. Michael Kors
(MK) is big name in this sector and they are working on this global market. This report is based
on their using strategies and markets.
TASK 1
Macro factors :-
Porter's five force analysis is a important tool by which Michael Kors can analyse the
competition in the market and also evaluate the profitability in the competitive market. There are
five factors which are included in it which includes buyer power, supplier power, Competitive
rivalry, threat of new entrants and threat of substitution(Ghauri. and Cateora., 2010.).
Buyer power – In the fashion industry, buyer power is very large where as shoppers are
individual person who are having little bargaining power. They have many alternative locations
so that they have less incentive to stay with the particular company so that they have to give them
so much indirect bargaining power( Sheth., 2011.).
Supplier power – In the fashion retail industry, supplier power is relatively small and many
companies source their products from the different manufacturer who receive the different
fractions of the profit. Suppliers have the little control on the fashion industry. Input price of this
price is low and then global development gap is significantly close up(Doole. and Lowe., 2008.).

Competitive rivalry – Michael Kors comes to analyse through the intensity of competitive
rivalry. There are so many retailers who sell similar products but there is a concept of brands
which also have some apparels to sell on the lower rates(Soares., Farhangmehr. and Shoham.,
2007.). There is a little innovation but the market is quickly saturated with very similar products.
Threat of new entries – They have the different ways to popularize the different products. The
fashion industry is having high risk and having high rewards for new entrants.
Threat of substitution – There is a little substitute having the different clothes. In the fashion
industry is really just competition.
Micro factors – These factors contains different factors which includes supplier, consumers,
competitors, public. Supplier is the company that provide the resources to produce the goods and
services(Bergkvist. and Rossiter., 2007.). Marketing intermediaries include the reseller and
agencies of marketing services. Consumers are those who are purchase the products at a
reasonable price. Competition is high in fashion industry so the end users wants low price
product and innovative product. Public is any group which are having the potential interest that
impacts the ability of organisation to achieve the objective which includes financial public,
media public and local public(Terpstra., Foley. and Sarathy., 2012.).
TASK 2
`Michael Kors is a having a potential to make new changes in the fashion, whose action
oppose to most of industry representatives. Most of the companies in this industries is concerned
about the design and branding issues, but Michael Kors works in a different style. They are
directly connected with the basic manufacturer of the products to international fashion retail
chain. At the same time, they are also focused on the marketing of their products and logistics
processes(Chen.,2008.). By combining these specific factors Michael Kors has created his image
and has taken a strong market position.
Michael Kors is using the Porter’s value chain framework to their internal business.
Inbound logistics: They are having some particular suppliers which are in the contract, to make
continues supply of products on a fixed price rate.
Operations: They are using the perfect manufacturer of clothes, a big fashion designer team is
supporting them and they have particular suppliers of products.

Outbound Logistics: They are exporting their products by the internet and their outlets in big
cities. They have many outlets and they are having contract wit big celebrities which have to
show off their products.
Marketing and Sales: Michael Kors is presenting their new products in the fashion show in the
fashion week.
Service: They are giving their assistance in their blogs and they are give to assistance their
particular celebrities customer.
This value chain frame work is concerning on the process view of an organisation, the idea of
seeing a manufacturing organisation as a system, made up of subsystems each with inputs,
transformation processes and outputs. Inputs, transformation processes, and outputs involve the
acquisition and consumption of resources.
SWOT analysis of the Michael Kors’ internal business factors using Porter’s Value Chain
framework.
STRENGTH: The strength of this model is that the value chain is a very flexible strategy tool
for concerning about the business, competitors and the respective places in the industry’s value
system. This value chain is helps into diagnose and create competitive advantages on both cost
and differentiation. It helps to understand that issues involved with the promise of making
customer value commitments and promises because it focuses attention on the activities needed
to deliver the value proposition(Chen., 2008.). This is giving a strength in a comparison with
your competitors, the value chain can give you a much deeper understanding of your clients.
WEAKNESS: The format of the value chain is heavily oriented to a manufacturing business and
this is mostly concerning about the manufacturing not on the marketing of the products. It may
be loophole for Michael Kors that the given value chain is having a little focus on their product
marketing in the international market. In the fashion industry there are many propels who are
using this and this is depends on them how to use this value chain. Some times it is not working
in the production of the products and it may be harmful for Michael Kors.
OPPORTUINITIES: The fashion industry is getting more challenging and the competition is
increasing the opportunities to make their presence in the international market. Michael Kors is
knows is perfectly and they are working on represent some new styles and brands in the market.

RECESSION: This is a task which is a threat for Michael Kors, this is related to the all levels
of the Porters value chain analysis. Recession can badly impact on the supplies and it can also
badly affects on the marketing and delivery and sales of the products.
TASK 3
An evaluation of potential markets of China, India, Russia and Iran:
Michael Kors is a international brand name and the peoples within the international
markets demanding their products and their assistance. China, India, Russia and Iran is the big
markets and their populations wants some new in the latest trends and the fashion. These are big
market and the are having a big population in it. Here is the evaluation of these markets:
IRAN: Iran is a Islamic republic country and the fashion industry is also going good in this
country but the problem is that most of peoples are Islamic and the female Islamic does not have
to wear fashionable and trendy clothes and accessories(Hultman., Katsikeas. and Robson.,
2011.). Another big problem is that the country is facing a big issue of terrorism. So this is a not
good option.
CHINA: China is a one of the biggest population country and this is having a big market and a
big scope for fashion but Chinese people are believes in to live simple and they are believing into
the use of local brands.
RUSSIA: This is the biggest country according to size and this is a neighbour country of UK.
Peoples are open minded and they believes in to adopting the changes but there is also a problem
which is their climate, generally peoples have to wear warm cloth, thus a less scope for fashion
designer.
INDIA: India is a big country and there also having a number of big population. Peoples are
easily adapting the foreign trends and things. Climate is also good and their life style is also want
some regular changes in their clothes and other accessories. All the possibilities are here for the
fashionable products so it makes a possibility for Michael Kors.
India is a country where peoples are influenced with the foreign culture and trends.
Peoples are generally adopt the new trends, 12C's framework to justify the targeted market which
is Indai:
12C's Frame work INDIA

01. Country Michael Kors is wants to explore their business in developing
country like, India it will have to pay duties such as Indian IPR
Customs for border protection, custom duties on importing of
products. This may impact Michael Kors' overall turnover as well as
market image.
02. Culture India is recognized for its rich culture and diversity. The peoples
wants to look different and better with their fashion. Generally
individuals wants to look better(Sousa. and Filipe Lages., 2011.).
Peoples working in big corporate and they want to looks different in
their work place, they have wear suits and tie during their office
hours.
03. Communication Michael Kors can promote its products in India by focusing on
fashion show events especially, in Lakme fashion week. Michael
Kors can use online marketing and advertise through various social
media such as Facebook, twitter etc.
04. Concentration Michael Kors is concerned about the Indian movies and trditional
fusion.
05.Channel of distribution Michael Kors will have to distribute its products through various
outlets and online shopping in country.
06. Capacity Most of the peoples who are living in the urban areas can buy
Michael Kors' products and they can be targeted.
07. Currency The currency of India is rupees which not fully convertible in
international currency market. Therefore, Michael Kors may face
issue of currency fluctuations etc in India.
08. Control and Condition In the international market Michael Kors have to clear about their
terms and conditions to make franchise. It should be well
coordinated in order to achieve the standard target.
09. Commitment Michael Kors have to commit about the terms and qualities
regarding the product. It will have to fulfil customer’s obligations

even after the sale of product.
10. Choices Indians wants to more choices in each and every segment so
Michael Kors is required provide choices in products so that people
will find worth in buying your product.
11.Contractual Obligation Under this Michael Kors has to make sure about its policies to
customers regarding the warranty or guarantee of the products.
12. Caveat Michael Kors will have to face various economic trends. Such as
there is a decrease in retail sales an increase in GDP growth rate of
India.
TASK 4
To explore the business of the Michael Kors, they have to make a entry in the new
market. In the context of India, franchisee is the best way to enter in the Indian market.
Franchisee is the another form of licensing. Franchising have many advantages in the context of
India, this is a simple and quick to implement. Generally the Indian co-operate peoples wants to
make franchisee for the international brands(Chandra., Styles. and Wilkinson., 2012.). The
franchisee strategy offers the advantage of minimal business costs. Franchises get up and running
faster than other forms of ownership. They are profitable more quickly. Initial investment is
lower for the company. Control on usage of brand and operations is higher as compared to
leasing. Franchises gives a cheaper way of expanding to other countries while also giving the
control over the usage of their brand and operations.
This is not easy task for Michael Kors to make a franchisee in India. Michael Kors is a
big brand name and their name is their goodwill. Some of big companies wants to make their
business with foreign fashion designer. So they have to share their profits and liabilities in a
agreement(Meissner., 2012.). On the starting level Michael Kors have to supply their products to
the franchisee and when the sale is growing on they can set up their outlet in the big cities like
Mumbai, Delhi, Kolkata and Chennai etc.

TASK 5
India is a big market and there are several type of customers which are having many
difference related to their behaviour and socio culture. India is a market where different religion,
language, caste and raise peoples are living so there can be difference in the using of marketing
mix by the Michael Kors. Physical evidence, people and process are the main marketing mix
which are used in the international marketing.
Physical evidence: Michael Kors to have to make their products display according to the
peoples. In the case of India, Michael Kors have to use this to attracts consumers by their
attractive outlets. Michael Kors have to use different themes according to the locality of the
people where is the outlet is situated. One more thing is that their products have to attach their
feeling because Indians are very emotional people.
People: In the case of India, there are several types of people are living in this and they are
having many differences on the basis of the language, religion and dressing sense also. So
Michael Kors to use some extra ordinary effects to attract them in the marketing and sales of the
products(Paliwoda. and Thomas., 2013. ). They have to use these peoples in to their employees
which can relate the consumers to these products. Michael Kors have to rely on the peoples who
are working in it and for the international marketing this may affect their business.
Process: This is related to the making processes of the products but on the initial level Michael
Kors does not making production in the India. But when they are making their production they
have to concern about the basic needs of Indian peoples and the products have to fulfil their basic
needs in on the initial level. Michael Kors have to make their products according to their dressing
sense and the their requirements.
CONCLUSION
The above report is based on the international marketing in the fashion industry. As we
know that the international marketing is too complex specially for a fashion company like
Michael Kors which is a well known name in the fashion industry. Company requires that they
plan their strategies according to the latest trends and focus on the particular market, try to satisfy
the needs of the customer internationally. So that company can achieve their goals and objective
in a timely manner.

REFERENCES
Books and Journals
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Cateora. P. R., 2008. International Marketing 13E (Sie). Tata McGraw-Hill Education.
Chandra. Y., Styles. C. and Wilkinson. I. F., 2012. An opportunity-based view of rapid
internationalization. Journal of International Marketing. 20(1). pp.74-102.
Chen. L. H., 2008. Internationalization or international marketing? Two frameworks for
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Marketing for Higher Education. 18(1). pp.1-33.
Chen. L. H., 2008. Internationalization or international marketing? Two frameworks for
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Doole. I. and Lowe. R., 2008. International marketing strategy: analysis, development and
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Ghauri. P. N. and Cateora. P. R., 2010. International marketing (pp. 15-16). McGraw-Hill Higher
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Henseler. J., Ringle C. M. and Sinkovics. R. R., 2009. The use of partial least squares path
modeling in international marketing. Advances in international marketing. 20(1).
pp.277-319.
Hultman. M., Katsikeas. C. S. and Robson. M. J., 2011. Export promotion strategy and
performance: the role of international experience. Journal of International
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Paliwoda. S. and Thomas. M., 2013. International marketing. Routledge.
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Sheth. J. N., 2011. Impact of emerging markets on marketing: Rethinking existing perspectives
and practices. Journal of Marketing. 75(4). pp.166-182.
Soares. A. M., Farhangmehr. M. and Shoham. A., 2007. Hofstede's dimensions of culture in
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Sousa. C. M. and Filipe Lages. L., 2011. The PD scale: a measure of psychic distance and its
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Online References:
International Marketing Management. 2016. [Online]. Available through
<http://www.surrey.ac.uk/postgraduate/international-marketing-management-2017>.
[Accessed on 19th November 2016].

Marketing theory. 2016. [Online]. Available through <http://businesscasestudies.co.uk/business
theory/marketing/international-marketing.html#axzz4PxU2RAwg>. [Accessed on 19th
November 2016].

APPENDICES
Macro Factors
Buyer power Buyer is the owner of the market and the whole business and
market depends on them. Michel Kors have to make their
products according to the customers choice.
Supplier power Michel Kors have to rely on the suppliers.
Competitive rivalry In the present time competition is going high so Michel Kors have
to perform their best in the products and services.
Threat of new entries This is a risk for Michel Kors that new entries in the same segment
can share their profits by their product sale.
Threat of substitution Some substitute products are available for the particular product
so it can harm the sale of Michel Kors.
PORTERS VALUE CHAIN FRAMEWORK
Inbound logistics Michel Kors is having some particular suppliers who are sending a
quality material to them.
Operations Michel Kors is using the best techniques in t he making process.
Outbound Logistics Michel Kors is using e-commerce and mainly they have some
particular high class customers.
Marketing and Sales Michel Kors' products are in demands so they are using outlets to
sale their products.
Service They are using their blogs to give the assistance to their followers.