Report: Strategic Challenges for Tommy Hilfiger in Global Markets

This report provides an analysis of the global business environment, focusing on the challenges and opportunities faced by businesses, particularly using Tommy Hilfiger as a case study. It explores key factors driving global commerce and trade, including competition, environmental considerations, and customer expectations. The report delves into the strategic challenges Tommy Hilfiger encounters when entering global markets, such as cost management, market analysis, and adapting to diverse customer preferences. The report concludes by summarizing the complexities of global expansion, emphasizing the need for businesses to understand foreign markets, innovate products, and adapt to local cultures and tax systems to achieve their objectives. The report highlights the importance of strategic planning, cost reduction, and customer-centric approaches for success in the global business environment.

Global Business Environment
Introduction
Global business environment is the scenario that
represents international market under which large
number of organisations from different countries and of
different sectors are performing their business activities
in order to earn revenues and increase their profit
margins. In short, Global business environment refers
to globalization of business organisations. This file
contains the description regarding factors that drive to
global factors and complexities faced by Tommy
Hilfiger while entering to global market.
Key factors that drives global commerce and trade
Global business environment is the broad concept of every
organisation which is trying to entire in international market
or global market where the large number of the organisations
of different sectors from different countries are competing
each other in order to acquire the global market in order to
accomplish the desired goals. The global environment
generates the profit maximisation as well as the brand or
goodwill of the organisation. But it is not easy to reach at
global market or international market the organisation has to
face several ordeals in order to reach the position in global
business market or the market of entire world.
Competition: Competition may be treated as the crucial
element which must be well thought out in a befitting mode
by a organisation while spread out their business at worldwide
level. Competitors directly affects both turnover and
profitability of a organisation like Tommy Hilfiger, which
introduced its products in modern mode. Although, it is
critical for a business entity to examine products, working
mode, technology which are also used by its competitors.
Along with this, management of companies can make
effective potential decisions in order to give them better
response of competition.
Environment: Environment can be termed as the main
external factor that considered by management of firms while
starting the business operations in other country or countries,
It is inevitable to realize regarding all the surroundings of
the organisations that consumers of targeted place have,
with the help of this, targets can accomplish by
organisation if the management can decently analyse the
need or requirement of consumers or the market demand.
This will help the organisation to cop-up with the
customers preferential rapidly changes or changes in
their taste or fashion. therefore, it is important for
undertaking to make modification in their products as per
necessities of consumer, so that consumers does not loses
their interest from products and services that they are
offering by the specified organisation like in case of
Tommy Hilfiger.

Tommy Hilfiger have to face many issues related with
the strategies of planning and developing. So, if
company sell its products and services at high cost they
can't able to achieved the targets. While launching new
products at international level, it has been examining
that product cost may be increased by taxes and excise
duties. Hence, it is important for Tommy Hilfiger to
make some strategies to reduce the product and services
cost. For example- If company hire the cheap labour
while transporting products and optimum utilisation of
resources. By doing this organisation can decrease the
cost of commodities.
Customer Expectations: Customer expectation is the
wants and needs of the customers in the marketplace. In
this Tommy Hilfiger influence the factors that create
issues in business operation. Customers expectation
changes according to the places or area. Therefore, it is
crucial for the company to know about customers’ needs
and wants. If the organisation target the customers age in
between 13 to 19 so it is necessary for them to determine
needs and wants of teenagers and made the foot wears
accordingly. So, that they can sustain in market for long
time.
Market: When the organisation decided to expand their
business at whole new place (City, state or country) and
about that place, management is unknown with the
culture and environment of that region. It becomes
crucial to make analysation of market of marked place
for which the management is preparing plans and
strategies, in order to achieve desired targets in short
run. Expanding the organisation pertain several types of
risks which directly affects the organisational efficiency
of production and managing the business operations.
Therefore, it is compulsory for organisation to make a
proper analysation of market in effective manner of that
place, where they are consenting to spread out the
business. With addition information, organization make
modification of their products and services in order to
amended service to the people of that targeted place.
In current scenario, generally the company try to expand their
enterprise and introduce its products and services globally to
gain profits. For doing this they innovate their products, try to
understand the foreign tastes, cultures and tax system which
help them to achieve their objectives and goals effectively and
efficiently. The common strategies mostly used by the Tommy
Hilfiger to deliver the services and product through online. So,
they use its own application and strategies by which customers
buy their products from home and provide various facilities
like buy one get one free, home delivery and so on to attract
the customers. Strategic challenges are those process which are
used by the company to tackle the issues or problems in normal
and also in complex situation.
In Russia, individuals have different tastes, cultures and tax
system which are followed in their country. So organisation
faces various complexities for making new or innovative
strategies and action plan. Some strategic challenges
complexities which is faced by Tommy Hilfiger while
operating globally are mentioned below:
Cost: Cost is the monetary value of resources, material, efforts
and possibility abstain in manufacture and delivery of product
and services. While operating the operational activities at
worldwide level carries the various risk with it.
CONCLUSION
From the above study it has been concluded that it is not
easy for the organisation to expand or spread out their
business, as there are so many ordeals in form of
economic, environmental and social factors that can
influence the operational activities of the business.