Assignment 3: Foreign Market Entry and Diversification
Create An Argument For Diversification Of Your Business That Will Be Presented To The Board Of Directors Or Business Investors. Diversification is going to be the key to the longevity of our label. Our smallest competitors, Simply Fashion and Cato, offer shoes and accessories; while our largest competitors, Lane Bryant and Avenue have begun to offer minimal exercise wear. “…diversifying entrants pose a bigger threat in increasing rivalry and challenging incumbents’ market share…” (Klein & Lien, 2009, p. 299). Right now, Lane Bryant is the leader in diversified product lines, although our competitors offer a variety of products in plus size fashion. Our company will improve on quality in order to become a threat to the competitors. If we do not diversify, we will quickly become irrelevant in the market, like our smaller competitors. If we plan to succeed and increase longevity we must diversify and improve upon what our competitors offer. Develop A Strategy For Diversification Indicating The Products And Industries For The Diversification And How Synergies May Be Gained From The Diversified Activity. As a way to increase popularity and customer base loyalty, marketing, research and development will work with designers and distributors on a costume accessories line for plus size women. Currently plus size women are hard pressed to find bracelets for the larger wrist, rings for the larger finger and necklaces that fall where they are supposed to. Lane Bryant is the leader in accessories but they are extremely expensive at twenty to thirty dollars for a ring or bracelet. Costume jewelry is not an item that is meant to last forever. Metals tarnish, plastic’s color fades after repeated use. Our company can come in and offer the correct size accessories at the correct price. Claire’s is a leading accessories line for average women. They are successful because they offer...
Cited: Bell, D. E., Lal, R., & Salmon, W. J. (2004). Globalization of Retailing. In J. A. Quelch, The Global Market: Developing a Strategy to Manage Across Borders (pp. 290-312). San Francisco, CA: Jossey-Bass.
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