Theoretical Part
Market Entry strategy
In internationalization process, companies implement various number of ownership strategies which determined the institutional form in market entry, formulation of ownership strategy depends on many factors; the situation of transaction costs – covering it in exporting process, share it with partners or to own facilities in targeted market- , economic of scale and scope, fiscal advantages, currency changes, decreasing political resistance, capital involvements of partners and intensity of partner involvement.
Ownership strategies include; exporting, licensing and franchising agreements, production agreement, those previous strategies usually used to cover the transaction costs of national market when it …show more content…
• Diversification: the strategy of company is to creating new products to offer in new markets aiming to increase its market shares in new markets.
Case Study Analysis
Historical Background
Before 159 years, Thomas Burberry, 21 years old, English youth opened his own outfitters store in Basingstoke, Hampshire in England. The most significant turn in Burberry was in 1879, when he invented gabardine - the breathable, weatherproof and hardwearing fabric.
In 1891 Burberry opened first store in London, in 1901 Burberry created its logo; The Equestrian Knight logo accompanied by the Latin word ‘Prorsum’ meaning ‘forwards’.
The masterpiece in Burberry's collection "the trench coat" designed in 1912 for British soldiers during WW1. In 1919 HM King George V officially appointed Burberry a Royal Warrant as Tailors.
The first step outside England was in 1909, when Burberry opened a store in Paris as wholly owned foreign enterprise (WFOE). But a new method of international expansion was adopted by Burberry in 1970 through signing licensing agreement with Matsui to manufacture licensed products for the Japanese …show more content…
While the luxury industry was growing at 13%, Burberry growth was only 2%".
The main objective of Burberry during Ahrdents era was to focus on younger generation through high technology channels and digital drive. Concerning offering model of Burberry, she recognized the lacked of central design and uniqueness in offering means, "Great global brands don't have people all over the world designing and producing all kinds of stuff" she said, Burberry missed the common standards and regulations which must stick with in business operations by the international units, the central unit have not any control over the international sub-units.
She worked hard to adjust the situation of lack of controlling through terminating licenses which harms the reputation of company, through "buy back the 23 licenses that allowed other companies to use the trademark Burberry check on their goods", while Ahredents missed to try with Burberry's partners to standardization the policy and strategies inside their national
Market Entry strategy
In internationalization process, companies implement various number of ownership strategies which determined the institutional form in market entry, formulation of ownership strategy depends on many factors; the situation of transaction costs – covering it in exporting process, share it with partners or to own facilities in targeted market- , economic of scale and scope, fiscal advantages, currency changes, decreasing political resistance, capital involvements of partners and intensity of partner involvement.
Ownership strategies include; exporting, licensing and franchising agreements, production agreement, those previous strategies usually used to cover the transaction costs of national market when it …show more content…
• Diversification: the strategy of company is to creating new products to offer in new markets aiming to increase its market shares in new markets.
Case Study Analysis
Historical Background
Before 159 years, Thomas Burberry, 21 years old, English youth opened his own outfitters store in Basingstoke, Hampshire in England. The most significant turn in Burberry was in 1879, when he invented gabardine - the breathable, weatherproof and hardwearing fabric.
In 1891 Burberry opened first store in London, in 1901 Burberry created its logo; The Equestrian Knight logo accompanied by the Latin word ‘Prorsum’ meaning ‘forwards’.
The masterpiece in Burberry's collection "the trench coat" designed in 1912 for British soldiers during WW1. In 1919 HM King George V officially appointed Burberry a Royal Warrant as Tailors.
The first step outside England was in 1909, when Burberry opened a store in Paris as wholly owned foreign enterprise (WFOE). But a new method of international expansion was adopted by Burberry in 1970 through signing licensing agreement with Matsui to manufacture licensed products for the Japanese …show more content…
While the luxury industry was growing at 13%, Burberry growth was only 2%".
The main objective of Burberry during Ahrdents era was to focus on younger generation through high technology channels and digital drive. Concerning offering model of Burberry, she recognized the lacked of central design and uniqueness in offering means, "Great global brands don't have people all over the world designing and producing all kinds of stuff" she said, Burberry missed the common standards and regulations which must stick with in business operations by the international units, the central unit have not any control over the international sub-units.
She worked hard to adjust the situation of lack of controlling through terminating licenses which harms the reputation of company, through "buy back the 23 licenses that allowed other companies to use the trademark Burberry check on their goods", while Ahredents missed to try with Burberry's partners to standardization the policy and strategies inside their national