Brunswick T-shirt Market: Internationalization Strategy Analysis

This presentation provides an analysis of Brunswick's internationalization strategy, focusing on the expansion of its t-shirt market. The presentation begins by defining internationalization and outlining the current scenario where production is proposed to be outsourced from Australia to Bangladesh. The objective is to enhance production volume and achieve cost-effectiveness, with a focus on the Bangladesh manufacturing and India sales. The presentation then justifies the internationalization strategy by examining political, legal, and technological cultures in India and Bangladesh. The strategy evaluation focuses on economic imperatives, particularly cost leadership due to lower production costs in Bangladesh, differentiation through the Indian market, and market segmentation. The conclusion highlights the advantages of this expansion, including favorable political and economic factors, social factors like India's market growth potential, and technological advantages. The presentation references key books and journals to support its findings.

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International
Management

SLIDE 1
Introduction to Internationalization
 Meaning: Internationalization can be defined as the process of expanding the operational
reach of the organization beyond the national boundaries (Hill, 2008).
 Current Scenario: The design and production of t-shirts is currently hosted from
Brunswick headquarters, Australia which is proposed to be outsourced to the country of
Bangladesh.
 Objective: The main objective behind internationalizing the current T-shirt market is to
expand with an aim of enhancing production volume and generating cost effectiveness by
setting manufacturing plants in Bangladesh. High sales aspect is another critical factor for
the stated aspect (Luthans and Doh, 2009).
 Targeted Markets: The area of proposed expansion are: Bangladesh (production and
manufacturing); India (sales outlet)
SLIDE 2
Justification for Internationalization
 Political culture:
o India: Liberal government policies and increasing rate of FDIs has made the
country a significant hub of MNC expansion (Luthans and Doh, 2009).
o Bangladesh: Being a developing nation, government of the country seeks
significant source of employment and opportunities for the population. The
policies are liberal and trade effective.
 Legal culture
o India: Adopted a structured legal system which helps in managing and
maintaining a significant system of operations and sales in the country (Werner,
2002). The regulatory bodies controls and manages the operational aspects under
international law.
o Bangladesh: Lack of effective and structured legal system has created significant
issues related to disputes and conflicts. However effective organizational policies
results in favorable business conditions in the country.
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 Technological culture:
o India: It is very rapidly developing with a growth rate of around 10% annually.
The rapid advancement in technology provides an edge in competition with ease
in consumer access and an enhanced product visibility (Hill, 2008)
o Bangladesh: The country is rich in resources however technological infrastructure
is not advanced. Increasing FDI in the country has resulted in significant
development in technology (Luthans and Doh, 2009).
SLIDE 3
Strategy evaluation
The internalization will focus on the economic imperative aspects. The major strategic results for
the business will be:
 Cost leadership: Production cost in Bangladesh is significantly low. This will help the
business in developing cost effectiveness for the business.
 Differentiation: India ranks 2nd in terms of population. The market differentiation will be
favorable for the business as it will enhance the target market.
 Segmentation: The Company can enhance the business integration by targeting the
business base of Indian market thus enhancing its market segment (Luthans and Doh,
2009).
SLIDE 4
Conclusion
Expansion to India and Bangladesh
 Political factors: Eased out legal compliances and economic fund support for business
establishment is a plus point.
 Economic factors: With the outsourcing of production to Bangladesh, the cost of
transportation to its neighboring countries shall be less.
 Social factors: India Ranked 3rd in the market growth rank segment of Indicators Ranking
for Emerging markets, 2009 demonstrates the splendid growth potentials. Significant
purchasing power in India may enhance sales opportunity (Luthans and Doh, 2009).
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 Technological Advantage: Advanced technological expertise availability builds a strong
pavement for market penetration.
REFERENCES
Books and Journals
Luthans, F. and Doh, J.P., 2009. International management: Culture, strategy, and behavior.
New York, NY: McGraw-Hill Irwin.
Hill, C., 2008. International business: Competing in the global market place. Strategic
Direction, 24(9).
Werner, S., 2002. Recent developments in international management research: A review of 20
top management journals. Journal of Management, 28(3), pp.277-305.
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