International expansion proposal Essay Example | Topics and Well Written Essays - 1500 words

International expansion proposal - Essay ExampleThe company is whole owned by publicly traded Limited Brands Company operating 1,017 company-owned stores and 18 independently owned stores, with annual sales of $6 billion and an operating appeal of $1 billion as of 2012. The company has hierarchic system of governance with Sharen, Jester Turney as the CEO and President of capital of Seychelless Secret Megabrand and point Apparel while Lori Greely as the CEO of Victorias Secret stores. (Websitewww.victoriassecret.com/victorias-secret-sport). Victorias Secret intends to diversify its market by opening impertinent branches in china the worlds most populous country with population of over 1.35 billion people, second largest country in the world by land area after Russia and a socialist country espousing communism (Meng, 2011). Economically, it is the second-largest economy in terms of nominal Growth Domestic Product GDP totalling most $8.227 trillion by 2013 as per International Mon etary Fund IMF. Reasons for expansion to China To tap into the growing market of the Chinas women population 48.73%, and demographic distribution of 13.3% and 42.8% on 0-14 years and 15-59 years respectively. Tap into the industrialization service in China to reduce apostrophize of production Maximize profitability with the matched exchange rate To maintain the competitive standards of Victorias Secret and brand image as a global outfit To tap into Chinas skilled and multi-talented fashion designers, workforce, view point and knowledge to ensure growth as a company To tap into Chinas economical wellbeing and favourable trading environment Tap into Chinas favourable climatic environment and Sporting culture of basketball, tennis, swimming and martial humanistic discipline Internal Analysis Value Victorias Secrets has with time strengthened set on its products starting with lingerie to diversify to sporting attires, swimming costumes, bras, panties, dormancy gowns, clothing and shoes. The launch of PINK, a new lingerie line targeting 15-22 years old with products such as underwear, sleepwear, loungewear, beauty products and accessories will create value in the new Chinese market more so through their product lines such as Angels, Very Sexy and Body by Victoria, intend to transition buyers into more adult product lines. The competitive exchange rate of the dollar and the Chinese Yuan, gives the company a competitive advantage of price and cost leadership giving the company capability to mitigate threats in the market (Barney & Hersterly, 2010). Rarity The uniqueness of design and the PINK product line creates the competitive advantage in the Chinese market coupled with the new accessories and fragrance lines which will match with the economies age distribution. The companys customer service experience coupled with loyalty cards promotions and effective marketing strategies such as their catalogue, sporadic arts in fashion publications and referrals/word of mouth will help scourge the new market. In addition the company has employed social media marketing with incorporation of sites such as Twitter, Facebook and Pinterest account expanding its website to feature behind-the-scene contents of its catalogue, in the Victorias Secret Direct, which are the strategies we can apply in the new market to lure the youthful and techno-savvy population. Imitability Most of the products by the