International Market Analysis of R.M. Williams: Europe vs. China

This case study analyzes the international market potential of R.M. Williams, comparing the European and Chinese markets. It begins with an executive summary highlighting the company's history, core products (handcrafted leather boots), and the shift in ownership. The report conducts a comparative analysis of the economic, financial, political, legal, and cultural environments in both China and Europe. It examines economic factors like GDP and market size, financial aspects including currency exchange, and political/legal environments, including trade regulations and taxation. Cultural dimensions are explored using Hofstede's model, analyzing power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, and indulgence. The study identifies challenges and opportunities in each market, recommending Europe as the preferred market while also outlining strategies for success in China. The conclusion summarizes the key findings, emphasizing the importance of adapting marketing strategies to the unique characteristics of each market. The report uses secondary research to support its recommendations, providing a comprehensive overview of the international market dynamics for R.M. Williams.

Running head: INTERNATIONAL ANALYSIS OF R.M.WILLIAMS
International Market Analysis of R.M.Williams:
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1INTERNATIONAL ANALYSIS OF R.M.WILLIAMS
Executive Summary
The study sheds light on the international market analysis fort the RM Williams. The study focuses
on marketing strategy adopted by the company into the international stage. The report identifies the
R.M Williams’ history of establishment where the company’s core product has been identified. The
study has also included a competitive analysis of financial, economic, political, legal and cultural
environment in between china and European countries. Identifying different challenges through the
analysis of various environment the study provides a recommendation which explains the reason of
choosing European market as the preferred market place for the company. While alongside the
company identifies strategy to run successfully their business in Chinese market as well. Hence,
lastly the study examines a cultural dimension to evaluate the advantage of both the market places
and adoption of socio cultural culture by the European market.

2INTERNATIONAL ANALYSIS OF R.M.WILLIAMS
Table of Contents
Introduction..........................................................................................................................................3
Comparative Analysis of Europe Market and China Market:.............................................................3
Economic and Financial Environment:............................................................................................3
Political and legal environments:.....................................................................................................4
Cultural Environment:.....................................................................................................................6
Recommendations................................................................................................................................8
Conclusion...........................................................................................................................................9
Reference.............................................................................................................................................9

3INTERNATIONAL ANALYSIS OF R.M.WILLIAMS
Introduction
R.M. Williams Company is named after the name of the Iconic Australian Entrepreneur
Reginald Murray Williams, who have started its operation from 1932. The company manufactures
boots, and famous for its handcrafted leather boots. R.M. Williams is one of the largest boots
manufacturer of Australia, but its products are mostly manufactured in China and South East Asia.
In 1988, the ownership of the company is transferred to the Bennett & Fisher Limited, and
currently the company and the brand is 100% owned by a private equity affiliate of LVMH. The
company is also quite dominant in the International market and after being occupied by the LVMH,
the company’s market potential in the Asian market have also increased. In the study below,
comparative analysis of the company’s market in Asia and Europe is done through analysing and
comparing the economic and financial environment, political and legal environment and also the
cultural environ in both the markets. The main objective of the study is to identify international
market problems, and also to identify international market opportunity, with accordance to the
product diversification and product innovation for different markets.
The product portfolio of the company includes various products out of which the key
products of the company are their handcrafted leather boots, and the company does not produce
other shoes apart from leather boots. The company mainly focuses on the leather products and in its
product portfolio they have leather belts, and t-shirts along with leather boots.
Comparative Analysis of Europe Market and China Market:
In the below the comparative analysis of the company’s international market of China and
Europe is done on the basis of some of the major environments and situations, such as economical
and financial environment, political and legal environments, cultural environments.
Economic and Financial Environment:
The international market of R.M Williams in Europe and China is dependent on various
factors and the business environment in that particular country. China is the most populated country

4INTERNATIONAL ANALYSIS OF R.M.WILLIAMS
in the world and thus the country is the third largest economy in the world, where the current GDP
of the country is US$12.24 lakh crores. Hence, in the market like China, R.M. Williams have
identified a huge economical environmental opportunity. The main objective of the company in the
market of China is to utilise the benefit of the economic environment of the country and also
maintain the financial position of the company to match it. The company therefore could plan its
production in huge mass, for the population of the country, and in the market of China, the
consumption of expensive and top quality product will be more, compared to other international
market.
The market in Europe of the company is very huge, as the market consists of many
countries, having total population of 74.14 crores, which is very small as compared to the
population of China. Comparing the economic environment of China and Europe, the current GDP
of Europe is $19.1 trillion. Since, the European Union is the second largest economy in the world,
hence it will be bigger economic advantage for the company, as in that economic environment of
the market the company could be able to operate its premium operations. R.M. Williams is a
premium brand offers premium products in the market, hence such market will be an opportunity
for the company to sell its premium and expensive product, as the market will quality and service
driven rather than price driven.
The financial and economic environment of the company in international markets, China
and Europe, will help in providing extra support to the sales of the company. The financial
environment of the China is one of the most developed and the most financially growing market in
the world. The exchange value of the currency of china (Yuan) to Australian dollar is 0.21 AUD.
Political and legal environments:
The company’s international market can be also analysed by the political and the legal
environment of the company. The company’s operation in the international market is dependent on
the political factors and the laws and policies of the local government. The company should

5INTERNATIONAL ANALYSIS OF R.M.WILLIAMS
implement the local government’s policies and should follow the local laws to avoid illegal
operations and to run authentic business model. The implication of the law is in tax payment,
business proposal and general laws, which should be followed during manufacturing and
operations. If the political environment of the company is supportive in business operations, then
the company have advantages in selecting target market and run efficient business, through
providing better services in the international market without any major interference and restriction
from the local government bodies.
The Political and legal environment are very business friendly, because China is the one the
largest retailer and exporter in the world, and China’s most of the national income and economy is
depended on its global manufacturing and retail businesses, which are exported to various
continents and countries in the world, thus it can be said that the government of china, under the
governance of the President of China, Xi Jingping, is very supportive for trading industries and the
law made is very suitable for the businesses and international trading. R.M. Williams’ most of the
product is made of leather and many countries have strict rules and regulations in use of animal
skin ad animal products for manufacturing products, but in there is no such law in any parts of the
country regarding the use of animal skin and animal products, but China has strict rule for avoiding
pollution, because China was the most polluted country in the world, and thus issued strict rules
and regulations regarding the air and water pollution. The income of the government of China is
mainly from the taxes from the trader, and the taxation law is also supportive, but the taxes charged
are high. Thus, manufacturing in China, will be an advantage to the company due to trading
friendly government in China.
The political and the legal environment in Europe is different in different countries. There
are already many businesses and many multinational companies in the Europe market dominating
the global market including airline and retail industries. Thus, entry of new companies in the
market can reduce the earnings of the current and Europe based market and hence most of the

6INTERNATIONAL ANALYSIS OF R.M.WILLIAMS
countries in Europe support existing business, and the other international businesses are allowed
with certain special rules and regulation in general to be implement on its business operations.
Europe as whole is a very developed continent in the world compile of various developed countries
in the world, appreciate new fashion and new businesses in the market with innovative and quality
product. The taxation law of Europe is very different than that of in China, because like China, the
countries in the Europe don’t have exemptions on taxes on international trading. After some
misconduct on company’s financial statement and auditing, by popular companies like Enron, the
local authorities, and the Government and the board have issued severe accounting laws and strict
auditing guidelines to avoid malpractices in companies’ final report presentation. Europe’s
accounting laws and regulation is very strict as compared to that of China, but China have special
law and regulation regarded to the maintenance of pollution. Thus, from the above discussions, it
can be concluded that the political and legal environment of China as well as Europe, both are very
suitable for the Company R.M.Williams, depends on the kind of circumstances.
Cultural Environment:
Using the Hofstede model of cultural dimension the cultural difference between two
countries have been identified. While operating the business in Europe and China the cultural
difference has been recognized through the six elements of cultural dimension between both the
countries. These are: Power distance, Individualism, Masculinity, Uncertainty avoidance, long term
orientation and indulgence (Matzler et al., 2016).
Power distance:
The power distance score in the chain has been recognized high at 80 which defines that all
individuals present in the society are not equal, hence this makes the company to follow a strategy
which includes the hierarchy into the work field of the organization and acceptable by the
employees. However the European market represents a low power distance score at 35. This
represents the company can run their business in European market without being worried about

7INTERNATIONAL ANALYSIS OF R.M.WILLIAMS
distributing proper power to the each of the people. Here the individuals are not influenced by the
formal authority.
Individualism:
With the score of 20 the china represents low at individualism. This means that the country
is having a highly collective culture into their society. These means the employees’ commitment to
the organization is low. On the other hand the European cultural represents the individualism
society scoring at 89. This represents that the employees are high in contribution towards the
organization. This reflects that the European people look are supposed to look after each other
(Maleki & de Jong, 2014).
Masculinity:
Both the countries reflect similar score at 66 in the masculinity nature. With the high score
in this cultural segment people reflects with the motivational attitude, success oriented and
competitive. Here in both the countries R.M Williams can achievement into the work flow through
hiring motivated people.
Uncertainty Evidence:
The degree at which the people accepts the future uncertainty. With the low score at 30,
china reflects the low in acceptance of the future uncertainty. The Chinese are comfortable with the
ambiguity. As a result of which 70% to 80% of Chinese business tend to be small to medium or
facility owned. However the European countries especially in UK reflects the similar cultural
attitude. This reflects the attitude to take on uncertain challenges with the positive attitude and goes
along with the changing plan.
Long term orientation:
With the score at 89, china reflects a pragmatic culture. In this country the people are highly
adoptable towards the changes. Challenges are accepted broad handed which helps the employees

8INTERNATIONAL ANALYSIS OF R.M.WILLIAMS
to survive long term into the organization. However in the European countries specialty in
Australia, the score of 51 provides a presence of mixed community. This reflects that compared to
the Chinese culture the EU community reflects less long term attitude towards survive and low in
making long term survivable strategy (Zhang, De Pablos & Xu, 2014).
Indulgence:
Compared to china the European people reflects more in indulgent nature. This reflects a
score at 69 which is low in controlling the desire and impulses. This is why the society reflects an
indulgent culture. This reflects a high positive attitude among the people of Europe with having the
desire to enjoy life and having fun.
With the combination of cultural factor such as education, learning, politics technology,
value, attitude and the social factor such as groups, family, role, status, the European Market
represents a high socio cultural environment which helps the company run bring effectiveness into
their resource utilization (York & Lenox, 2014).
Recommendations
Followings are some of the strategic recommendations are stated below, regarding the the
market in Europe and China:
 R.M. Williams should start its manufacturing unit in China, along with in Australia. This
will help the company to increase its production and manufacturing in China will reduce the
cost of production, because the exchange rate of Yuan with Australian Dollar is very low
and the overall circumstances including all environments discussed above, will support the
operation.
 The marketing experts and the management of the company should target the European
market for the sale of its premium products, because there is no such competitors in the

9INTERNATIONAL ANALYSIS OF R.M.WILLIAMS
Europe market, and the due to all the factors and circumstances, the company will be able to
hold the market with loyal customers.
 The Company should follow the European standards, and should maintain its accounting
records in accordance to the standards, and hence the company will be more aware of
malpractices. This attitude will be appreciated by the European clients.
 By considering the cultural environment, the company should prefer the European market,
as the above study states the power distance is very low in Europe as compared to the
China.
Conclusion
From the above discussion, it can be concluded that a company like R.M. Williams, should
prefer European market over China, because the support of the financial and economic environment
of Europe will help the company to grow its market internationally, and expand its revenue. The
geographical area and the population of Europe will help the company to expand its market
internationally. The cultural analysis of the company also concludes that the European market will
more accept the company, because of low power distance.
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10INTERNATIONAL ANALYSIS OF R.M.WILLIAMS
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