The entry strategy mode for NEXT to Expand into China Essay

The entry strategy mode for neighboring to Expand into China - Essay ExampleTheir sufficient answers equipped me with in-depth knowledge and better understanding of adjoining Plc, the fashion industry, and the Chinese clothing market. Their shared knowledge enabled me to critically analyse the issue in consideration. beside Plc is the UK third-largest clothing retailer operating through 400 retail stores across the UK and Ireland, more than 50 stores in Europe, Asia and the Middle East. (http//en.wikipedia.org/wiki/Next_plc). It is a prominent retailer, whose strategy is aimed at capturing new markets through global expansion.This research flip investigates the current literature on the internationalisation process and reviews alternative modes of market entry strategy. Various uncomplicated and secondary sources provide the necessary data to sufficiently asses the internal health and the external market of conterminous PLC. These data are then carefully analysed in order to gau ge the companys capability to strain internationally. alternating(a) expansion options are evaluated and recommended for the companys successful expansion into the Chinese market.The research concludes that the Chinese market is a ample ground for the expansion of a foreign apparel retailer. However, the existence of unhomogeneous environmental, industry specific-forces, and the current resources limitations of the Inditex group, requires the brass and employment of an optimal expansion strategy. It should be noted that due to certain limitations imposed by environmental and internal factors, the findings of this research cannot be utilized in terms of all market expansions, although they can be amply used as an example for further theory building in the area link up to the Chinese market entry and expansion strategies. Table of Contents1.1 Background to StudyThe rapid ripening of the textile industry in China which is facilitated by the continuous economic reforms, improving living standards, and increase demand conditions has been widely recognized (USINFO, 2004). Furthermore, the emergence of the Chinese middle class gives way to the development of a truly attractive and large market (Wang et al., 2004). However, the earlier attempts to enter the Chinese market reveal that various multinational corporations (MNCs) have not fully gained adequate knowledge of the population. Their generalisations have underestimated Chinese consumers by treating them as a homogeneous group (Jagersma & Van Gorp, 2003). In reality, Chinas unique political andsocial environment creates a very fragmented market with the existence of various segments (Wang et al., 2004). 1.2 Research Aim and ObjectivesBased on the findings of the study, the researcher leave attempt to draw recommendations for NEXT PLC on its entry and expansion to the Chinese market. Several objectives are find to support the research processDefine and investigate state and future key environmental fact ors present in the Chinese market which are likely to affect the performance and success of NEXT Plc should it make up ones mind to operate in the geographic region Assess the financial and strategic capability of NEXT Plc to expand in the new market Evaluate alternatives for the successful market expansion and identify main issues composite andRecommend the best option