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Local vs International Brands - Research Paper Example

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This research paper “Local vs International Brands” will attempt to explain the various barriers and possible solutions for marketing a branded product of a Multinational company from a developed country to the consumers of an underdeveloped country…
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Local vs International Brands
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Download file to see previous pages Topshop is the UK based Multinational with an amazing story. With a humble beginning in 1964 in a basement in London, it has become one of the most well-liked High Street establishments with over 300 shops in the UK and over a 100 outlets worldwide offering both high fashions and daily wear garments and accessories.
While basically aiming at the female section, it also sells fashion lines for men as well as babies. Recent co-branding with Kate Moss, the famous Model was a calculated move to give a fresh thrust to move deeper into the lucrative American and European markets, and it proved to be correct. The Kate Moss experiment and experience has opened wider markets of US and Europe for Topshop and is now looking beyond the western markets to promote this exclusive range of high fashion clothing. It has chosen India as the first Eastern market due to its unique position as a country with great similarities with the UK.
There are many uncertainties when a company plans to exports to another country where conditions differ from the Home country (Erramilli & Rao 1993). Conflicting data and its interpretation often make it difficult to arrive at correct decisions (Boyacigiller 1990), and in absence of adequate information, it is impossible for companies to project consequences of their strategic decisions (Achrol & Stern 1988). Indeed this may lead to wrong and harmful decisions affecting performances in overseas markets (Lee, 1998). To overcome this difficulty Johanson and Vahlne (1977, 1990) suggest that it is best if the target country is closely similar to the Home country to ensure success. Undoubtedly similarities are easier to manage and less challenging and more likely to succeed. This calls for a PESTEL and a SWOT analysis of the intended market. ...Download file to see next pagesRead More
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