International Business Strategy for Allerton Swimwear in the US Market

This report examines the international business strategy of Allerton Swimwear, an ethical Australian swimwear company, focusing on its expansion into the US market. It begins with an executive summary and table of contents, followed by an introduction to the company and its product line, emphasizing its commitment to sustainability and ethical practices. The report then analyzes relevant strategic management theories, including the Design, Planning, Positioning, Cognitive, and Learning schools, providing a framework for understanding Allerton Swimwear's approach. Ethical considerations, such as developing a code of ethics and establishing an ethics officer, are discussed, alongside an assessment of market opportunities in the US, considering its cultural diversity and fast-growing market. The report highlights both the advantages and disadvantages of entering the US market, including the potential for brand growth and partnerships, as well as challenges related to market positioning and economic factors. Finally, the report offers recommendations for Allerton Swimwear's US market entry and expansion, concluding with a summary of key findings and insights.

Running head: Australian SME- Allerton Swimwear
Australian SME- Allerton Swimwear
Name of the University:
Name of the Student:
Author Note:

1Australian SME- Allerton Swimwear
Executive Summary:
The current situation for the business houses has changed drastically over time with respect to
the Global Economy and World Market. Therefore, in order to sustain in the competitive
market, the business houses should expand themselves overseas and get included in the
international market. The following report illustrates up on Allerton Swim Wears and
evaluate its expansion and business approaches to expand itself in the US. In order to that,
certain theoretical and ethical considerations have also been discussed and the market
opportunities exposed to the organisation are discussed and certain recommendations have
been made up on the business strategies.

2Australian SME- Allerton Swimwear
Table of Contents
Introduction:...............................................................................................................................3
Chosen Country and Product:................................................................................................3
Discussion:.................................................................................................................................4
Theories of Strategic Management:.......................................................................................4
The Design school:.............................................................................................................4
The Planning School:.........................................................................................................5
The Positioning School:.....................................................................................................5
The Cognitive School:........................................................................................................5
The Learning School:.........................................................................................................6
The Market Opportunities:.....................................................................................................7
Appealing to the Diversified Culture and Ageing Population:............................................10
Chances for Corruption:.......................................................................................................11
Recommendations:...................................................................................................................12
Conclusion:..............................................................................................................................12
References:...............................................................................................................................14

3Australian SME- Allerton Swimwear
Introduction:
Allerton Swimwear, is a fashionable swimwear company and claims itself an ethical
Australian Swimwear Company, whose focus is manufacturing environmentally friendly
fashionable swim sets and swim wears. The main focus of the company is sustainability and
they are seen to be focusing upon sustainability in the swim wear fashion industry.
Nominated as the best Fashion Start Up of 2016 at WGSN, they claim themselves to
environmentally and socially aware in such a way that they claim that any individual with
curiosity can visit their production house and can show how they make the swim wears with
recycled and recyclable materials and also the actual cost of their piece (Allerton, 2019).
They are a brand that is been worn by celebrities and eminent personalities and also
represented themselves in certain prominent fashion shows like, Miami Swim Weak, Frame
Fashion Week and the like, was a partner in the Australia’s Next Top Model and BMW, and
was also featured in Cosmopolitan Australia (Allerton, 2019). However, since the company is
trying to spread out and expand overseas, therefore in the following paper, the strategies that
are taken to expand in the international market and the strategies can be taken to spread out in
the international market are discussed and illustrated.
Chosen Country and Product:
Allerton Swimwear is an Australian brand with its production house in Sydney.
However, the company is trying to reach out of the country and expand overseas. It has
already expanded itself to USA, UK and New Zealand. The CEO of the company, Pirra
Griffiths, is of the opinion that, the organisation is trying to fill in the gap between fashion
and functionality both environmental and social by incorporating an eco-friendly approach
and the aboriginals into the production processes (Allerton, 2019). This particular paper will

4Australian SME- Allerton Swimwear
illustrate upon the business strategy the company must incorporate for the expansion in the
US market. The swimwear company has unique product line with a merge of tough, sporty
and femininity in the designs. The materials used can be recyclable and are chlorine resistant
and regenerated Lycra are used wherever possible. Also, they come in both subtle and vibrant
colours and has both classical and contemporary designs. The designs include both classic
styles of bodysuits and swim suits, one piece, two pieces, bikini and the like. They produce
luxury swim wears representing itself in a number of prominent magazines like Vogue, Elle,
GQ Magazine and the like and has also associated with eminent personalities and celebrities
like Rihanna, Anna Heinrich, Devin Brugman, Cindy Bruna and many more (Allerton, 2019).
Discussion:
Theories of Strategic Management:
Strategic thinking is defined as the mental processes and perceptions of the companies
in relation with the reality and interpretation of that reality aligned with the company’s goals
and plans or desires. The manipulation and formulation of business models is known as the
Strategic Management. The theorists have, over time, developed certain conceptions and
understandings regarding the strategic policies that are taken ad can be taken by the
companies. The followings are the schools of thoughts related to the Strategic Management.
The Design school:
The Design School propounds s strategy that states that the internal capabilities of
accompany and the external possibilities of the same must be aligned. The model emphasizes
both the internal and external situations related to accompany. The former focus upon the
internal strengths and weaknesses of an organisation and the latter illustrates the external
opportunities and threats that an organisation is exposed to (Daft, 2015). This kind of analysis
and strategic management is known, in lay man’s term a SWOT analysis. The model places

5Australian SME- Allerton Swimwear
an emphasis on appraisal policies both for internal and external situations. The internal
appraisal includes lucrative structures of incentives, work-life balance health benefits and the
like. The external appraisal includes appraisal on the aspects of technological, economic and
political (Taylor et al., 2014). This model states that equal importance should be given to both
internal and external environments.
The Planning School:
The Planning School encompasses the steps that are to be followed from analysing a
situation to executing tools and measures to address that situation. This strategic analysis
includes objectives, internal and external auditing, evaluation of the strategies and operating
the strategies (Thompson, 2017). This school essentially refers to the part of planning the
strategies and implementing the same. The strategies taken and implemented result out of a
controlled and conscious process and has holistic approach considering the minute details.
The Positioning School:
The Positioning School essentially considers the positioning of a company and a
brand in the market and evaluate the level of competency of the company as compared to its
existing and probing competitors. The economic and market structure of the society is very
important in the orientation of this particular strategy and the analysts are quite importance
(Swanson & Chermack, 2013). This particular school of strategy has a very micro approach
including only the economy of a country or society.
The Cognitive School:
This School of strategy derives is strategy from a psychological point of view. This
school of strategy has a very idealist perspective. The primary proponents of this school are
Lyle, Reger, Schwenk, Thomas, Bonger and Huff (Cresswell & Cresswell, 2017). The
proponents believed that the more information a person has, regarding the market or the

6Australian SME- Allerton Swimwear
related field, the better and clear understanding the person will have regarding the decisions
and they can structure better strategies and policies. Therefore, it is essentially a cognitive
understanding of the mind and the strategies depend upon the cognition of the individuals or
company personnel. The proponents also included the internal and external situations and
regarded them as the stimuli and were of the opinion that these stimuli control and influence
the decisions and planning.
The Learning School:
This particular school of strategy is of the opinion that an organisation involves
strategy as per their learnt understanding of the field and market. Further, this approach
includes evolving of the strategies with increasing knowledge of the field and market. The
school involve the understanding that organisations learn from their success and failures and
the designing and manufacturing of the products and services depend up on and are
influenced by these learnings (Cresswell & Poth, 2017). Therefore, this school of strategy has
given emphasis on the external situation more than the internal stimuli since, their products
and services are designed as according to the market needs, competition and customer
reviews.
Since the company claims it to be ethical in orientation and practice sustainable
approaches towards business strategies, therefore the following theoretical ethical grounds
should be considered by the company.
 The organisation must develop a code of ethics and they must be practised by the
stakeholders and they should evolve organically along with the growth of the
organisation.
 The reporting processes that are presented in the organisation should have proper
structure that is aligned with the infrastructure of the company and the organisation

7Australian SME- Allerton Swimwear
must be adept in managing the problems that arise on the spot in a very generic
manner, without blaming any person.
 One important ethical consideration that the organisation must address is having an
ethics officer. This is especially true for the organisation if it is to reach and expand
overseas. This is needed because the workplaces are often seen with employees
having ethical dilemma and finding themselves not being aligned with the strategies
taken by the company. In such situations, having an officer in the ground is helpful, as
the employees will be able to go up to the person and clear their confusions moreover,
it will help the organisation to maintain the code of ethics in the office ground.
 Lastly, the organisation must also include an ethical training program to make its
employees understand the ethical considerations that are being made and practised by
the company.
Building and maintaining ethical consideration within the organisational structure is a
must element for the organisations especially in case of expanding outside the home
country.
The Market Opportunities:
The US market has a greater opportunity for the country than it has in Australia. US is
known for its cultural and class diversity and also it is one of the most important market
from the perspectives of economy and fashion. Therefore, the organisation is exposed to
the under points.
o US, being a vast country with a fast-growing market space, poses an excellent
market growth and opportunity for the swim wear house. It is the home of many
fashion brands, big magazine houses, prominent celebrities and personalities

8Australian SME- Allerton Swimwear
(Gruber, McMillan & Thompson, 2013). These all contribute to the following
advantages for the business house.
 It can expand and explore itself in a bigger demography.
 It can partner with many big brands or make alliances with other fashion
business houses which will impact the organisation positively and bring it
under the limelight that it deserves.
 It can further partner with commercially and critically acclaimed
celebrities that will add up ton the brand name and brand value
(Chintakananda & Mclntyre, 2014).
However, along with these, there are certain disadvantages for the company as
well.
 Since it is an Australian brand, therefore, it would need some time for
the company to get its position in the market.
 The economic and political structure of the country can contribute
negatively towards the growth of the organisation. Although, the
companies are now practising freed trade and open economy, but the
political scenario of the country is in a messed-up situation which can
act as a factor of hindrance towards the growth and expansion of the
company (Cramton, Ockenfels & Stoft, 2013).
o US is also known for its multiculturalism. There are many aboriginals, African-
Americans, Indian-Americans, Canadians in the country, all contributing to the
multiculturalism of the country. This further provides certain advantageous
situations for the country.

9Australian SME- Allerton Swimwear
 Since, the organisation has a multicultural attitude, including the
aboriginals and marginals into the work process, therefore, the
organisation can practice the same in the country as well.
 Practicing such an attitude will enable them to gain a better position in the
existing market and also to compete with the existing business houses of
the country.
 Also, they can include and reviser their collections considering the needs
and class structure of the people (Tregeorgis & Reuer, 2017).
However, they are also posed with certain disadvantageous positions. Such as,
 Understanding the social situation and needs of the country and its people
can be time consuming for the organisation.
 Also, the consumption rate of the country is observing a downsize which
can pose as a threat to their expansion and growth (Wulff, 2015).
 Since, the country has a class and cultural diversity, therefore, the
organisation may have to include and revise their pricing structure to exist
in the market.
o Another important opportunity, which is also a threat position for the organisation
is that the country has an ageing population. Since the organisation especially
makes only swim wears, which are popular among the youth section of the
society, the brand can also explore and include designs for the consumers above
forty (De Villa, Rajwani & Lawton, 2015). This will help the organisation to grab
a niche corner in the market. However, this particular position also arises certain
points of threat. These are-

10Australian SME- Allerton Swimwear
 The popularity of swim wears is much lesser and they only go for certain
classical designs. Therefore, the company has to revise and revamp their
designs.
 Also, the organisation would need to come up with certain marketing
strategies to appeal to them.
However, in achieving these grounds the company must consider the above-mentioned
ethical considerations and the theoretical backgrounds. For example, the positioning
school of strategy will help he organisation to gain the concept of the US market and
therefore will allow it to establish its own position in the market competing the existing
organisations.
Appealing to the Diversified Culture and Ageing Population:
The existing multicultural attitude of USA and the ageing population of the same,
gives an ample amount of opportunity for the brand to thrive within the country. Being
the dominant and fast-growing economy of the world, US gives a vast opportunity of the
brands to explore and expand. Moreover, since the country has a diversified population
across age, class and culture, the organisation will get diversified consumers all
contributing to the growth of the brand (Bader & Enkel, 2014). The diversified consumers
will enable the company to-
 Explore more designs and vibrant colours ass according to the needs and
appearances and nature of the diversified customers.
 Appeal to both the young and elderly generations.
 Include the class parameters existing in the country and making itself a brand for
all (Tulung, 2017).

11Australian SME- Allerton Swimwear
 Strategize marketing policies to gain a unique niche in the market and appealing
to all.
 Using the advanced technological tools in the production system.
 Gain a more sustainable attitude towards business policies and thus giving out
strict competition to the existing home brands (Barlett, Doz & Hedlund, 2013).
 Moreover, since the company includes an ethical consideration in the practice of
conducting business, it will earn them a reputation in the industry.
Further, the organisation must practice rigorously, the Cognitive and Planning School
of Strategy to gain position in the market. They must understand the psychology of
the buyers and incorporate goals and strategies accordingly.
Chances for Corruption:
One of the most important disadvantageous aspect of doing business in USA is the
U.S. Sanction laws. As per the US sanction laws there are certain countries, with whom an
organisation, doing business in the country, cannot involve in business with other countries.
However, with stringent policies and legal loopholes, many organisations, especially, start-
ups are now violating this Sanction law. Many companies and organisations are not
complying with the regulations and involving into corruption by bribing certain groups who,
give these companies access to do business in other countries. It is true in case of acquiring
shops as well. It is often seen that an organisation needs to pay the local political bodies to
open a shop in a specific area. This is another form of bribery which is often visible in the
country (Chen & Cheng, 2019). Therefore, the organisation must ensure not to be involved in
certain activities, as, this may at first can get her business, but in the long run it may pose a
potential threat to the existence of the company. Furthermore, to address the needs of the
customers belonging from a lower economical background, and expand their customer base,
the company is likely to or can exclude their sustainable approach and include poor materials