Koyo Jean Internationalization Strategy - Essay Example

The acronym PESTEL bears its origin from the combination of the first letters of these factors. Discussed under, are the various roles played by each one of these factors in the marketing of premium jeans in both South Korea and Brazil. To begin with the PESTEL Analysis of South Korea, the country enjoys political stability, though in the year 1997, there was a financial crisis in the same country, something which affected the country’s economic status. However, some strategies were laid down and in 1998, one year thereafter, the country’s economic status stabilized again.

A few years later, the country’s technology also grew making it one the world’s largest technological markets. Socially, the country is characterized by an aging population due to both low fertility and population growth. Despite the low population, the country has a highly competent labour force that facilitates the production and commercialization of advanced technologies which in turn lead to the flourishing of the marketing of the Koyo Jeans designed by William Cheung. The complex and lengthy legal procedures discourage investors.

When it comes to the environment of the country, there is unreasonable breach of emission standards. PESTEL Analysis of Brazil shows some similarities though, at the same time brings a few out some differences. Economically, the prices of premium jeans are high due to taxes. Socially, Brazil has a high population than South Korea, hence presenting a strong work force. The country is also technologically advanced hence able to compete favourably with other errant countries including South Korea (Keller & Price, 2011).

Porter’s Diamond, named after Michael Porter is an analysis tool for assessing the ability of a country to compete internationally with respect to: factor endowments, firm strategy, structure and rivalry, related and supporting industries, Demand conditions. As discussed earlier, the populations of the two countries are contrasting in that South Korea’s Population is small while Brazil’s is large. The large population of Brazil plays a role in labour provision hence making it compete favourably.

On the other hand, South Korea despite having a small population, the population is informed in matters relating to technology. This helps the countries to compete favourably. There is need for both countries to come up with long-term objectives so as to help them cope up with completion not just from each other but even from other like-minded countries; those dealing in the designing and marketing of premium jeans worldwide. One of the major strategies is the evident economic and political stability in both countries.

The existence of other clothe industries in these countries also plays a significant role. The benefits accruing from the investment in both basic and advanced factors by related firms can spill over. This is characterized by the existence of other industries designing other kinds of clothes, which can be worn together with these premium jeans. The worldwide high demand for premium jeans, starting from the citizens of the designing countries (South Korea and Brazil) stimulates the production since this ensures availability of the market.

Mode of entry Market mode of entry is a detailed plan designed by a company that shows how it endeavors to enter into a new market (Root, 1994). It is normally a complex decision to make because of its associated risks creating fear for most companies. Koyo jean's entry to South Korea and Brazil should opt to employ exporting, licensing, franchising or joint ventures. Joint ventures normally start