Report on International Marketing - Michael Kors

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.