1. Environment Factor.
Environmental changes have a major impact on all products, services, designs, markets, and customers. In Japan, there are four seasons which are spring, summer, autumn, and winter. Season changes in Japan always affect their fashion styles to adapt the changes of weather. For Japanese people, fashion is also very much a seasonal thing. For example, Japanese people have to wear a long warm coat or heavy jacket which could protect them against the coldness of the weather. Therefore, Padini suppose to provide variety of products or services with a new fashion ideas and cutting edge styles to satisfy the demands or real needs of Japanese customers. Due to the four seasons that Japan has, Padini must redesign and redevelop …show more content…
Uniqlo has strong brand names in Japan which can increased attention from customers and enjoy a high level of consumer awareness. Padini Holdings Berhad is a new foreign market enter to Japan, it’s quite difficult to compete with local brands. In addition to this, Japanese customers might come out the bad perception that Padini’s products are produce in a low quality. This is because they really not familiar with the Padini brand.
External : Opportunities
1. Affordability to make a purchase
Everyone afford to buy Padini’s products as the clothes are less expensive than Japan. Moreover, a big opportunity to expand its market in Japan due to the Japanese people are getting richer which can leads to increase in demand.
2. Advanced technology and communication methods support
Padini has to act more aggressive in advertising and doing promotional activities with the benefits of technology and communication methods support. Padini can provide different ways of contact such as email, facebook, phone call and others. Thus, customers can get in touch with company easily.
External : Threat
1. Limited raw material supply
Japan is a limited nature resource country. It’s a huge challenge for Padini. Padini need to imports a lot of raw materials from other country which can lead to increase in production …show more content…
Market entry modes
A. Joint Venture
Joint Venture is new businesses undertaken by two or more firms agree to pool their resources for the purpose of accomplishing a specific task. They will join together to develop their products, sharing technology to each other and so on. Even if have many advantages for this entry mode, but Padini Holdings Berhad do not choose it because they have many intensive competitors in Japan such as Uniqlo and it’s difficult to against them. It’s also high risk for Padini since the partner may become competitor also.
B. Licensing
Licensing is the process of leasing a legally protected such as copyrighted or trademarked entity. For Padini, as a new entrant into Japan market, it’s is risky to find a proper licensor that issued the license to Padini. Moreover, Padini need to consume more money and time to pay the licensing fees. Licensing can cause lack of control over use of assets and knowledge, thus Padini does not choose this mode to enter into Japan.
C. Foreign direct investment
Environmental changes have a major impact on all products, services, designs, markets, and customers. In Japan, there are four seasons which are spring, summer, autumn, and winter. Season changes in Japan always affect their fashion styles to adapt the changes of weather. For Japanese people, fashion is also very much a seasonal thing. For example, Japanese people have to wear a long warm coat or heavy jacket which could protect them against the coldness of the weather. Therefore, Padini suppose to provide variety of products or services with a new fashion ideas and cutting edge styles to satisfy the demands or real needs of Japanese customers. Due to the four seasons that Japan has, Padini must redesign and redevelop …show more content…
Uniqlo has strong brand names in Japan which can increased attention from customers and enjoy a high level of consumer awareness. Padini Holdings Berhad is a new foreign market enter to Japan, it’s quite difficult to compete with local brands. In addition to this, Japanese customers might come out the bad perception that Padini’s products are produce in a low quality. This is because they really not familiar with the Padini brand.
External : Opportunities
1. Affordability to make a purchase
Everyone afford to buy Padini’s products as the clothes are less expensive than Japan. Moreover, a big opportunity to expand its market in Japan due to the Japanese people are getting richer which can leads to increase in demand.
2. Advanced technology and communication methods support
Padini has to act more aggressive in advertising and doing promotional activities with the benefits of technology and communication methods support. Padini can provide different ways of contact such as email, facebook, phone call and others. Thus, customers can get in touch with company easily.
External : Threat
1. Limited raw material supply
Japan is a limited nature resource country. It’s a huge challenge for Padini. Padini need to imports a lot of raw materials from other country which can lead to increase in production …show more content…
Market entry modes
A. Joint Venture
Joint Venture is new businesses undertaken by two or more firms agree to pool their resources for the purpose of accomplishing a specific task. They will join together to develop their products, sharing technology to each other and so on. Even if have many advantages for this entry mode, but Padini Holdings Berhad do not choose it because they have many intensive competitors in Japan such as Uniqlo and it’s difficult to against them. It’s also high risk for Padini since the partner may become competitor also.
B. Licensing
Licensing is the process of leasing a legally protected such as copyrighted or trademarked entity. For Padini, as a new entrant into Japan market, it’s is risky to find a proper licensor that issued the license to Padini. Moreover, Padini need to consume more money and time to pay the licensing fees. Licensing can cause lack of control over use of assets and knowledge, thus Padini does not choose this mode to enter into Japan.
C. Foreign direct investment