Strategic Analysis: Rowlinson Knitwear's Expansion into Germany

This report analyzes the potential for Rowlinson Knitwear, a UK-based SME specializing in knitwear and school wear, to expand its business into Germany. It utilizes a PESTLE analysis to evaluate the macro-environmental factors influencing the German market, including political stability, economic strength, social trends, technological advancements, legal frameworks, and environmental considerations. The report highlights opportunities such as Germany's strong economy, high purchasing power, and advanced technology, while also addressing challenges like competition and environmental regulations. Furthermore, it outlines an international marketing strategy for Rowlinson Knitwear, focusing on pricing decisions using a competitive base pricing strategy and promotional strategies leveraging social media to enhance customer awareness and build a strong brand image in the German market. The report emphasizes the importance of adapting to local conditions and understanding customer needs to ensure successful market entry and sustainable growth.

Global business in context

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Justifying the opportunity in Germany for Rowlinson knitwear using factors of macro
environment.................................................................................................................................1
Outlining of international marketing strategy.............................................................................5
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Global marketing strategy refers to an approach in which nations from several region
existing within the world to coordinate marketing efforts effectively that is mainly executed by
an organisation. Global business strategy is mainly followed by companies in order to harmonise
efforts effectively so that goals are attained properly (Vilkina and Klimovets, 2019). It is mainly
based on fulfilling needs and demands of customers on global level ans also delivered high
quality products in proficient manner. Global business is integrated with recognising new market
to understand needs of particular segments so that products are easily delivered to customers in
proficient manner. This particular report is generated to understand the concept of global
marketing strategy in terms of Rowlinson Knitwear. It is a SME company headquartered in UK.
As this organisation manufacture knitwear and school wear to customers and now they want to
internationalise their business in mainland nation of Europe i.e. Germany. So that it report
consist of market analysis of Germany in context of Rowlinson Knitwear, UK.
MAIN BODY
Justifying the opportunity in Germany for Rowlinson knitwear using factors of macro
environment
Rowlinson Knitwear is an organisation that manufacture knitwear, corporate wear and
school uniform for their customers. Therefore, this organisation having general stock at all time
and for embroidery company needs time around 4 days. Hence, Rowlinson Knitwear does not
compromise with their quality due to this they easily inhale the distinct market identify (Quelch,
2017). To effectively understand the company opportunities and threats which are presented
within market it is very crucial to examine macro factors which are useful for organisation in
their long term survival. Therefore, Rowlinson Knitwear is emphasis on enter into new market to
enhance their profitability. In this company enter into new segment of Europe country-Germany
that represents as new market for an organisation that linked with several threats and
opportunities that leads to expansion and success. PESTLE analysis defines as an macro factor
where a business enterprise is easily analysed several aspects within market to grab opportunities
for market expansion. In case of Rowlinson Knitwear, organisation have good market position in
UK that helps in offering distinct competitive advantage. Pestle analysis for Germany in context
of Rowlinson Knitwear are elaborated below:
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Political factor- Germany is a country that is democratic parliamentary federal republic
in which prime is expressed as head of nation. Therefore political condition of Germany is highly
strong because it is powerful nation in European Union. Germany is associated as a member of
IMF and world bank due to which they contributes huge amount within the budget of European
union. However, company also hold follow liberal policies because of this purchasing power of
people are very good that is a positive sign for an organisation to expand their business in
country like Germany. On the other hand Germany also support extrinsic investors to invest in
the country that is the major reason for stable political condition of nation. In terms of Rowlinson
Knitwear that is a company who is willingly enter intro market of Germany for adopting more
opportunities and overcome challenges that are being faced by organisation at the time of
expanding business (Agarwal and Wu, 2018). In this regard due to stable political condition
company strengthen their market position and it is related to adhered guidelines that are imposed
by government. As government of Germany followed liberal policies that helps company to
expand business appropriately. On the other side, Germany government face several issues
related high disagreements between several other government due to this major problems are to
be faced by Rowlinson Knitwear at the time of expanding business within Germany.
Economic factor- This factor express an economic condition of particular nation along
with FDI policies that impact highly on the domestic income, per capita income of population.
Therefore economic condition of Germany is represented as a most influential economy within
universe due to this they highly focused on the foreign direct investment. However, this offer
high end opportunities to Rowlinson Knitwear in terms of expanding business in country like
Germany. Within Germany, purchasing power of people is very strong due to which companies
seen positive impact on their expanding operation business because of strengthen purchasing
habit of population. This represent as a positive movement for several business firm in order to
invest in economy of Germany. In context of Rowlinson Knitwear that is famous manufacturing
organisation in UK who offer clothing apparels in market and in Germany they manufactures
electrical equipments in optimal and high quality manner. Hence, it creates high opportunity for
Rowlinson Knitwear where they and focus on minimise the cost over several elements that are
needed within sector to satisfy the demand of customers. As Germany is highly associated with
import activities because of this they have remarkable economic system. It create high
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opportunity for Rowlinson Knitwear to expand business from UK to Germany in order to sustain
effectively in marketplace.
Social factors- These factors are mainly linked with the taste, preferences and buying
behaviour of customers related to particular products and services. Therefore, Germany is known
for a largest contributor in European Union along with country have high diversity in
international market. This is one of the core reason related to existence of social factor in
Germany because they behave different than any other nation (De Mooij, 2019). On the other
hand purchasing power of population within Germany is very intensifying due to which high
growth is attained within nation in continuous manner. However in Germany machineries are
very affordable that represent as opportunity for Rowlinson Knitwear to enhance market within
country like Germany. There are several issues related to this factor which is faced by
Rowlinson Knitwear in context of expanding business such as low birth rates, expensive lifestyle
and many more. These aspects creates issues for company in placing services within Germany
market. Hence, the country have huge number of organisation those manufactured homogeneous
products that create threat to Rowlinson Knitwear in promote their products and services within
market. To overcome this issue they promote in such a manner that attracts huge customer
attention and their loyalty and sustainability. By using unique strategy for attracting people
within Germany Rowlinson Knitwear capture customers to sustain within international market.
Technological factor- This factor is associated with new and advanced technology that is
used within business so stay updated with market technology. Therefore with this reason science
and technology is considered as a main aspects in which high progress is seen by businesses for
attaining goals and objectives (Guan and et. al., 2021). In terms of Germany, they highly focused
on technological advancement where companies adopts the use of advanced technology to run
their operations smoothly in order to fulfil needs and demands of customers. In Germany digital
technology is highly used by most of the population of Germany that creates an opportunity for
Rowlinson Knitwear in terms of advertise new expansion in Germany using digital media so that
they easily catch attention of customers and attracts huge base of customers. Besides this in
present time to sustain in business industry it is essential to use technology like digital
technology (social media tools) to strengthen profitability in marketplace. In context of
Rowlinson Knitwear they capture an opportunity to inhale technological up gradation in their
business operations so that huge base of customers are to be attracted effectively and efficiently.
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Therefore in Germany internet connectivity is strong so that Rowlinson Knitwear comes in
Germany market with an opportunity to adopts promotion tactics using social media. Hence, this
factor is effective to understand the expansion of Rowlinson Knitwear in mainland of EU i.e.
Germany.
Legal factor- These factor is associated with legal laws and regulation that are imposed
by government of country and impact directly over the operations of business (Mothersbaugh,
Hawkin and Kleiser, 2019). Germany is a type of democratic nation where there is people feel
safe over discrimination. Within this high business opportunities are to be developed by
Rowlinson Knitwear in order to expand business within Mainland of European Union. Therefore,
Rowlinson Knitwear is an employee driven organisation and due to liberal policies within
Germany helps company to engage their employees in significant manner. On the other hand,
there are several laws and legislation like employment laws etc. that is useful to adopt by a
concerned company while perform their functions within Germany. Follow rules and regulation
is effective for Rowlinson Knitwear because due to this they stay away from legal proceeding
that hamper brand identify in negative way. In terms of recognising opportunity within this
factor, Germany is a country that is more active in taking care of adopting laws that helps
company to show care for employees that will enhance customer availability and accessibility in
marketplace.
Environmental factor- This factor is mainly linked with the availability of
environmental practices that is highly used within an organisation in order to secure ecosystem
along with minimising the negative impact over environment. Therefore, Germany is highly
famous for their natural beauty and its the responsibility of every business entity to manage and
use resources in optimal way that does not harm the environment and their living creatures
(Baena, 2019). In terms of this Rowlinson Knitwear, capture the opportunity to use sustainable
resources in such a manner that does not harm to environment and national heritage effectively.
There are several problems that are present within Germany in relation to environment such as
problems of climate change, deforestation etc. In this Rowlinson Knitwear face several issues at
the time of expanding business in Germany in order to deal with managing and use natural
resources in optimal manner so that negative impact is to be deducted. In current time due to
COVID 19, the major issues seen in hospitality sectors due to which an organisation face issue in
expanding and sustaining their business in the market of Germany.
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Outlining of international marketing strategy
International marketing strategy refers to a process in which organisation adopts
condition for particular country. As it is not only associated with selling of goods but it is based
on understanding needs and demands of people in such a manner that fulfil expectation of
customers proficiently. It mainly involves creating, planning, promotion, positioning of product
and services within global market. Therefore large scale business are very active as they are
aware about the internal condition of several nations but SME firms are not effectively aware
about the global periphery due to this they does not capture market opportunities effectively. In
present market competition within business industry is increasing because of expanding business
in international market. While the trend of internationalise business helps Rowlinson Knitwear to
attain competitive edge within marketplace (Rexhepi and et. al., 2018). On the other hand
expanding business at global level it is essential to enhance customer awareness so that high
success is to be enjoyed by company. To build a strong brand image it is essential to imply
global strategy so that organisation effectively helps mass population. To expand business
operation by Rowlinson Knitwear it is essential to outline international marketing strategy that
are elaborated below:
Pricing decisions
Pricing strategy is defines as that strategy in which prices of products are to be set in such
a manner so that huge base of customers are attracted (Mekonnen, 2018). In terms of Rowlinson
Knitwear, they generally use competitive base pricing strategy because they move towards new
market that is totally new to them and to sustain in market it is essential to attract huge base of
customers. Hence, this pricing strategy helps company to generate huge customer base and also
support in deal with market uncertainties properly.
Promotional strategy
In order to create awareness within Germany market Rowlinson Knitwear use social
media tool because Germany is a advanced country where people spend their most of time using
social media in order to spread high awareness in marketplace. This channel helps Rowlinson
Knitwear to attracts large base of customers so that they retain for longer time period.
Key challenges to global expansion for the SME in this market
When an organization plan to expand their business in global market it is essential to
check the feasibility so that company easily identify the needs and requirements of that area in
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which they want to expand their business. Therefore market is connected with several
opportunities which are easily capture by businesses so that they would sustain for longer time
period (Richelieu, 2016). In context of Rowlinson Knitwear several challenges are come into
path at the time of expanding business in Germany are presented below:
Local competition
This elaborated as a competition faced with local competitors within area company
expansion is taking place. Within Germany there are already have several manufacturing
industry those offer good quality cloths to customers. In context of Rowlinson Knitwear,
company face several problem in managing the level of competition to enhance business on
global periphery (Hampden-Turner, Trompenaars and Hampden-Turner, 2020). To deal with this
challenge Rowlinson Knitwear need prominent suppliers so that they offer quality products to
customers in distinct manner that helps in developing separate identify within market.
Tax codes and compliances
Taxes and their compliances are major challenge that are faced by organisation at the
time of expanding business on global market. This is one of the major issue which was faced by
SME because to enter into international business they linked with additional cost that impact
profitability of business in proficient manner in Germany. In case of Germany unrushed
approaches are to be used by government due to this high applicability of taxes face by emerging
company. In this it is crucial for Rowlinson Knitwear to understand tax policies and plans of
Germany so that expansion is to done appropriately and effectively.
Supply chain risk
Rowlinson Knitwear is a leading company in UK due to which they have prominent
supply chain in UK that creates issues in updating supply chain in Germany. Being a
manufacturing company Rowlinson Knitwear operate their business to satisfy the customers
needs in proficient manner. There are various suppliers that are necessary for concerned
company such as clothing items, linens etc. in case of delay in supplies of products and material
company face the risk related to loss of customers due to which firm profitability is to be
impacted. To effectively deal with this challenge Rowlinson Knitwear focus on preparing regular
records related to consumption of material and inventory so that issue related to shortage of stock
is to be solved and firm will satisfies all demands in proficient manner.
Entering strategies
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 Licensing- It is a type of strategy that is basically used by an organisation to enter into
international market. In this another company is target business firm that give licence to
use property. In case of Rowlinson Knitwear, company offer license to another
international country to expand their business. As they provide licence to Germany based
company where they also use intellectual property right and manufacturing process so
that they enter into Germany market effectively and efficiently.
 Joint venture- It is one of the most preferred market entry where strategic alliance is
framed among local business firm and new entrant firm where they both share profits and
loss in a pre decided manner (Shantanu, Priyanka and Khoa, 2020). In this company
adopts the use of managerial skills of local firms to align the path for success so that
complexities are to be removed effectively in global market. With the use of Joint venture
company like Rowlinson Knitwear get entry into German market as it is useful to
minimise the risk of customer attraction and increase market share within the market of
Germany in a short period of time.
By examine all these factors it is to be evaluated that it is highly significant for
Rowlinson Knitwear to expand their business in Germany. It is useful to expand business as it
offers high advantage related to win competition and generate high profitable results in terms of
brand value and economic aspects (Lavrikova, Andreeva and Ratner, 2021). These factors are
useful to attracts the German customer attention in proficient manner so that high success is to be
enjoyed by organization. Therefore, business environment of Germany is growing that develops
an opportunity for foreign investors to money in German market so that they enjoy long term
sustainability and profitable results within marketplace. Rowlinson Knitwear is develop their
business at growing stage due to which their expansion in German market helps in touching the
new heights and success within competitive marketplace.
CONCLUSION
From the above information it is to be concluded that global marketing strategy is one of
the significant term which is mainly used within business at the time of expand business
operations on global level. Global business strategy mainly helps organisation to appropriately
deal with changing business environment due to which major fluctuation is to be easily inhaled
in business entity. Therefore these strategies are highly useful to assist business in terms of
eliminate negative impacts within marketing activities so that expansion of business is done
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smoothly. There are several consequences that are faced by organisation at the time of expanding
business such as supply chain, taxation issues etc. As these issues are being eliminated by
organisation so that they effectively deal with diversified market condition in efficient manner.
Similarly this report elucidate PESTLE analysis to evaluate external factors so that company
easily deal with competencies of market appropriately. These macro factors helps business to
grow and develops by minimising the possibilities of failure so that successful results are
attained effectively and efficiently in Germany market situation.
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REFERENCES
Books and Journals
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In Emerging Issues in Global Marketing (pp. 3-11). Springer, Cham.
Baena, V., 2019. Global marketing strategy in professional sports. Lessons from FC Bayern
Munich. Soccer & Society. 20(4). pp.660-674.
De Mooij, M., 2019. Consumer behavior and culture: Consequences for global marketing and
advertising. SAGE Publications Limited.
Guan, J. and et. al., 2021. To buy or not to buy: how young consumers approach new smart
products in the social media context. Young Consumers.
Hampden-Turner, C., Trompenaars, F. and Hampden-Turner, C., 2020. Riding the waves of
culture: Understanding diversity in global business. Hachette UK.
Lavrikova, Y.G., Andreeva, E.L. and Ratner, A.V., 2021. Development Factors of Region’s
Foreign Economic Activity in the Context of Global Challenges. Ekonomika Regiona. (2).
p.688.
Mekonnen, A., 2018. Digital marketing strategy for affinity marketing: Utilising the new
marketing arena. In Digital Marketing and Consumer Engagement: Concepts,
Methodologies, Tools, and Applications (pp. 87-105). IGI Global.
Mothersbaugh, D.L., Hawkin, D.I. and Kleiser, S.B., 2019. Consumer behavior: Building
marketing strategy. McGraw-Hill Higher Education.
Quelch, J.A., 2017. Global marketing management: a casebook.
Rexhepi, G. and et. al., 2018. The importance of intellectual capital in the selection of global
marketing strategies: evidence from family businesses in Macedonia. International Journal
of Transitions and Innovation Systems. 6(2), pp.108-117.
Richelieu, A., 2016. Sport teams' brands going international: The ‘Integrated Marketing Strategy
on the Internationalisation in Sport’(IMSIS). Journal of Brand Strategy. 5(2). pp.218-231.
Shantanu, Priyanka and Khoa, T.T., 2020. Insight of entrepreneurship in Indian context. Journal
for Global Business Advancement, 13(3), pp.321-335.
Vilkina, M.V. and Klimovets, O.V., 2019, May. Augmented reality as marketing strategy in the
global competition. In Institute of Scientific Communications Conference (pp. 54-60).
Springer, Cham.
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