This report has two main parts. The first part is the SWOT analysis for Fashionable. The strengths are: fashionable products, relatively cheap price, and exclusive access to high grade natural resources. In the internal analysis, the three strengths make Fashionable competitive in Japan RMG market. There are still some weaknesses like weak brand name and language barriers. These weaknesses can be fixed by proper managements. In the external analysis, the opportunities can be summaries as unfulfilled market, increasing demand for fashionable clothes, less trade barriers and application of new technologies. However there are some threats like limited raw material supply, intensive competitions, treats from buyers and also the trade barriers. There threats cannot be eliminated but can be adjusted by right strategies. The second part of this report is the discussion of choose the proper market entry mode. I choose exporting as the right one for several reasons.
This report is written to help a Melbourne-based readymade garments (RMG) producing company, Fashionable identify the most suitable entry mode into Japanese RMG market. In order to find out the proper entry mode, SWOT (strength, weakness, opportunity and threat) analysis must be applied to analyse the international and external environments. And then, seven market entry modes will discussed in details to indentify the most suitable one for Fashionable. A brief overview and business scope of Fashionable
Fashionable is a Melbourne-based readymade garments (RMG) producing company, which was founded in 1998. It is a successful RMG producer in Australia. This company has several world famous dress designers and this company specialises in producing fashionable clothing. Fashionable has strict rules to regulate the production procedures in order to guarantee the quality of the clothing. Furthermore, this company has accumulated strong capital support during the last ten years. Right now, the company decides to enter Japanese RMG market.
SWOT Analysis: Internal and External
Before the expanding the market abroad, information of market environments in the target county must be collected and SWOT comes into use. The SWOT analysis provides information that is helpful in matching the firm’s resources and capabilities to the competitive environment in which it operates and is going to operate (Robert W., Duncan, Peter J. Tarcy, Brian, 2003). It describes the particular strengths, weaknesses, opportunities, and threats that are strategic factors for a specific company. A SWOT analysis should not result in the identification of a corporation’s core competencies, but also in the identification of opportunities that firm is not currently able to take advantage of due to a lack of appropriate resources(Wheelen,Hunger:107). Whether the SWOT analysis is useful depends on the gathered information. ‘Thorough market research and accurate information systems are essential for the SWOT analysis to indentify key issues in the environment (Marketing and Its Environment: 44). And it is important to differentiate between a strength or weakness from an opportunity or threat. There is a method to determine whether it is internal or external: ask yourself would this issue exist if the company did not exist? If the answer is yes, it should be the external to the form (Hosferd, Marketing and Its Environment: 44). In this report, the internal environment is inside the Fashionable itself where the strengths and weaknesses exist, and the external environment is the Japanese RMG market where Fashionable wants to enter and where the opportunities and threats come from. Internal Environment Analysis
The internal Analysis of strengths and weaknesses focuses on internal factors that give organization certain advantages and disadvantages in meeting the needs of its target market. The analysis of strengths must be market oriented or customer...