The entry strategy mode for NEXT to Expand into China - Essay Example

Comments (1) Cite this document
First of all, I would like extend my deepest thanks to my supervisor, Professor A, for his detailed review, excellent advice, and patient support, which make the accomplishment of this essay possible. I would also like to express my gratitude to Professor B, for his helpful comments and advice for the revision of my first draft…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.5% of users find it useful
The entry strategy mode for NEXT to Expand into China
Read TextPreview

Extract of sample "The entry strategy mode for NEXT to Expand into China"

Download file to see previous pages Their sufficient answers equipped me with in-depth knowledge and better understanding of NEXT Plc, the fashion industry, and the Chinese clothing market. Their shared knowledge enabled me to critically analyse the issue in consideration.
NEXT Plc is the UK third-largest clothing retailer operating through 400 retail stores across the UK and Ireland, more than 50 stores in Europe, Asia and the Middle East. ( It is a prominent retailer, whose strategy is aimed at capturing new markets through global expansion.
This research project investigates the current literature on the internationalisation process and reviews alternative modes of market entry strategy. Various primary and secondary sources provide the necessary data to sufficiently asses the internal health and the external market of NEXT PLC. These data are then carefully analysed in order to gauge the company's capability to expand internationally. Alternative expansion options are evaluated and recommended for the company's successful expansion into the Chinese market.
The research concludes that the Chinese market is a fertile ground for the expansion of a foreign apparel retailer. However, the existence of various environmental, industry specific-forces, and the current resources limitations of the Inditex group, requires the establishment and employment of an optimal expansion strategy.

It should be noted that due to certain limitations imposed by environmental and internal factors, the findings of this research cannot be utilized in terms of all market expansions, although they can be amply used as an example for further theory building in the area related to the Chinese market entry and expansion strategies.

Table of Contents
1.1 Background to Study

The rapid growth of the textile industry in China which is facilitated by the continuous economic reforms, improving living standards, and increasing demand conditions has been widely recognized (USINFO, 2004). Furthermore, the emergence of the Chinese middle class gives way to the development of a very attractive and large market (Wang et al., 2004). However, the earlier attempts to enter the Chinese market reveal that various multinational corporations (MNCs) have not fully gained adequate knowledge of the population. Their generalisations have underestimated Chinese consumers by treating them as a homogeneous group (Jagersma & Van Gorp, 2003). In reality, China's unique political andsocial environment creates a very fragmented market with the existence of various segments (Wang et al., 2004).
1.2 Research Aim and Objectives

Based on the findings of the study, the researcher will attempt to draw recommendations for NEXT PLC on its entry and expansion to the Chinese market. Several objectives are set to support the research process:
Define and investigate present and future key environmental factors present in the Chinese market which are likely to affect the performance and success of NEXT Plc should it decide to operate in the geographic region;
Assess the financial and strategic capability of NEXT Plc to expand in the new market;
Evaluate alternatives for the successful market expansion and identify main issues involved; and
Recommend the best option ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“The entry strategy mode for NEXT to Expand into China Essay”, n.d.)
Retrieved de
(The Entry Strategy Mode for NEXT to Expand into China Essay)
“The Entry Strategy Mode for NEXT to Expand into China Essay”, n.d.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
herthamraz added comment 14 days ago
Student rated this paper as
This document saved me today. I liked the structure. It was very useful for my miscellaneous course.

CHECK THESE SAMPLES OF The entry strategy mode for NEXT to Expand into China

Joint Venture entry mode of Marks and Spencer in China

...difficulties while entering the markets in the Asia Pacific region, especially in China being strongly affected by the cross-cultural divergences and considerably different customer preferences compared to the Western markets. This can further be considered as the failure of the strategies and modes chosen by the company with regard to its entry in specific foreign markets. Hence, it can be concluded that the M&S were incapable of successfully creating its competitive position in the market of China that resulted in its failure. References Barford, V., 2012. Five things Tesco got wrong. BBC. [Online] Available at:...
4 Pages(1000 words)Essay

Entry Mode in the Chinese Car Industry

...manufacturing companies, operating internationally, face heavy domestic and global pressure and make increasing Foreign Direct Investment (FDI) abroad, the research of the entry mode decision has caught the attention of managers and academic scholars. In this regard, many theories, which identify and focus on diversified variables that influence the entry mode decision, have been developed. 1.1 General information on Chinese car market After several years of continuous growth, China is now the fourth-largest automobile market in the world next to U.S., Japan and Germany. Even the development continues at just half its current pace,...
26 Pages(6500 words)Essay

Next Marketing Strategy

...and due to stiff competition, the company wanted to expand overseas for entry into the Asian, Eastern European, and Middle Eastern markets, for which the company chose a franchising approach. In the United States, Next entered a joint venture partnership. Finally, for the company's entry on the European continent, the company chose to launch the Next brand in France. 18. By 1995, sales went up to 650 million with a net profit 80 million. 19. UK clothing market declining due to competition and heavy outsourcing. Today, companies in the retail clothing market in the UK are reduced to making moderate profits due to which expansion is not easy. it needs a...
20 Pages(5000 words)Case Study

SMEs Entry into China

..., 2008, from china_wto_part_I_II.htm. Johanson, J. & Vahlne, J. E. (1977). The Internationalization Process of the Firm: A Model of Knowledge Development and Increasing Foreign Market Commitments. Journal of International Business Studies, 8(Spring/Summer). Lowe, Julian, & Wan, Stephen. (n.d.). Market Entry Strategy into China of by Entrepreneurial New Venture Firms. Centre for Regional Innovation and Competitiveness (CRIC), University of Ballarat, Australia. Williamson, O. (1985). The Economic Institutions of Capitalism. New York: Free Press....  SMEs’ Entry into China Abstract The internationalization of SMEs has become a subject of the special issue in the modern...
2 Pages(500 words)Essay

Entry Strategy

...commitment is preferred. Franchising and management contracts are the most preferred modes of entry in the hotel sector in international expansion. In both these formats capital-intensive assets and knowledge-based assets can be separated. Service firms may enter foreign markets using a variety of modes but control is the most vital factor. Control ensures achievement of the ultimate purpose of the organization. Control also determines risks and returns; control ensures quality service which protects firm reputation (Blomstermo, Deo Sharma, & Sallis, 2006). High control entry modes demand resource commitment thus reducing the uncertainty exposure of...
11 Pages(2750 words)Essay


..., where in this case Turkey is the environment. Therefore, joint venture mode of entry is fundamental if all market variables are to be exploited, but the right partner combination is of great importance. Firms operate under different goal and objectives. The underlying interest is to minimize costs of operations and consequently maximize business benefits, measured by profitability level. There are reasons why firms targeting the Turkish market opt to establish joint ventures other than seeking to establish individual business operations. It is more likely that there are significant barriers to entry into the Turkish market for a foreign firm and also high competition that is likely to...
1 Pages(250 words)Article

Strategy enter mode

...are discussed in this paper. The literature developed in this field has been reviewed so that all aspects of this study’s subject are adequately explained. Moreover, five studies have been selected and are presented separately for highlighting important points of the issues under discussion. It is proved that a variety of entry modes is available to firms that wish to internationalize their activities. Still, not all these modes can be equally effective; indeed, the risks involved in the target market can be many. It should be also noted that the benefits from entering a foreign market may not be clear in the short term. For this reason, a firm trying to expand its...
12 Pages(3000 words)Essay

Global Business Entry Strategy

...Athena Health Inc Entry Strategy in the UAE Athena Health Inc Entry Strategy in the UAE Athena Health Inc is a US company that produces software that helps physicians to provide customers with efficient services. The products that the company produces include electronic medical record, medical billing, online practice management, care coordination, and patient communication. The patient communication system enables physicians to contact their clients even when they are far from the health centre. The practice management, on the other hand, is a system that integrates knowledge with business services. This structure makes administration work easy in a health centre...
2 Pages(500 words)Research Paper

The Entry Strategy of Motorola in China

...strategy: investment/technology transfer, management localisation, local sourcing, and joint ventures/co-operative projects. However, Motorola’s future in China is currently being questioned due to growing competition from both foreign and local firms. This paper thus examines the strategic and environmental factors that motivated Motorola to enter China; the effectiveness of Motorola’s entry strategy in achieving its corporate strategy in China; and the appropriateness of Motorola’s staffing approach for senior management in China in relation to their strategic objectives. I. Using suitable...
9 Pages(2250 words)Case Study

Foreign Market Entry Strategy

..., which summarizes the above discussed articles and explains the relevance for companies planning to expand their operations in foreign markets. Article Review In today’s highly competitive and complex environment, the firms pursuing a strategy of international market expansion face with a necessity to make a key strategic decision of the choice of market entry mode. Liang et al. (2009) provides a brief overview of the key types of foreign market entry strategies including the following: export, licensing and franchising, acquisitions, greenfield investments, or joint ventures. These market entry...
7 Pages(1750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The entry strategy mode for NEXT to Expand into China for FREE!

Contact Us