INTERNATIONALIZATION OF KOYO JEANS Essay

4478 Words Apr 18th, 2014 18 Pages
International Business Strategy

INTERNATIONALIZATION OF KOYO JEANS FROM HONG KONG

Contents

Executive Summary i

1. Introduction 2
1.1 Purpose
1.2 Background

2. Environmental Analysis (Current Markets)
i. Microenvironment (Porter’s 5 Forces) 3 ii. PESTEL of Koyo Jeans (Currents Markets) 3 iii. Internal Factors 4 iv. Lifecycle Analysis – Current Markets 5
v. SWOT/TOWS Analysis 5 3. External Analysis (New Markets)
i. Microenvironment (Porter’s 5 Forces) 6 ii. PESTEL of Koyo Jeans (New Markets) 7 iii. Lifecycle Analysis (New Markets) 8 iv. Opportunities & Threats (New Markets) 9 4.
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v. SWOT/TOWS Analysis
With reference to Appendix A, we can conclude the following:
Koyo Jeans does produce quality products for its costs. The franchises it chooses to work with also helped it to maintain its service quality and uniform customer experience. It can also be seen as a weakness as Cheung has a strict selection criterion which has slowed the rate of Koyo’s expansion. Koyo has 1 store in France, which is not well known as well. The recession has affected Koyo as people are more likely to buy brands that are already established rather try something new during this time period.
3. External Analysis (New Markets)
i. Microenvironment (Porter’s 5 Forces)

Figure - Brazil

Figure - USA
From analysing the 2 Porter 5 forces framework of each country, we can say that there is more similarities than differences as both markets are totally new for Koyo Jeans and given that both are geographically distant as well. In Brazil however, due to cheaper cost of production, Koyo can consider it to produce goods in the future. In USA, Koyo can be considered having a stronger global presence.

ii. PESTEL of Koyo Jeans (New Markets)

From the detailed PESTEL of Brazil

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