Group Members: Hung Piu Leung

Cap Duy Anh

Jinn Peng

Amaris Li

Bonny Le

International Business

Presentation

2013

Compare Business Environment

USA (Home Market) India (Host Market)

Political Trade regulations are important as Hollister exports productsUSA taxes increase the selling prices of Hollister’s products.

Increasing economic

liberalisation since 1991.

Market now more open to

foreign investment.

Economical The US economy becoming stronger and expected to bounce back.

8-10% growth rate encourages foreign investment.BRIC (Brazil, Russia, India,

China) economy

Social Fashion in the US is eclectic and mainly informal.

Cheap and large workforce.

Traditional clothing in India: Sari,

Sherwani, Lungi.

Population PyramidUS

India

People’s median age: 37.2 years old.

People’s median age:26.7 years old.

USA(Home Market) India (Host Market)

Technological Many companies prefer to

pay higher USA prices for

better products.

India manufactures 14% within

textile and garment industries.

India is third largest producer of

cotton in the world.

Legal The USA has several

regulations regarding trading,

selling and manufacturing.

India is based on common law

Environmental USA has smaller variation

in climate than India

Indian clothing market demand

different textures and materials.

Rapid industrialisation and a

growing population are straining

natural resources and environment

Compare Business Environment

Hollister’s Opportunities and Threats

Opportunities Threats

Growing reputation of brand

allows setting up concept stores

outside USA, which is a

highlight of the brand.

Expanding in emerging markets

like India, where teens have

growing spending power.

Create discount stores

Expand internationally outside

US/Europe core.

Exchange rate can add to costs.

Increasing rental in India

External forces such as sudden

change in population size,

government policies.

Threat from other brands and

the price war in the market .

Entry Strategies

Griffiths, A. & Wall, S., 2011. Economics for Business and Management. 3rd ed. Essex: Pearson Education

Limited.

Porter’s Theory of national

competitive advantage

Demand conditions:

• Demand for fashion for young people

Related and Supporting industries:

• Strong textile and garment industry

• Cotton manufacture industry Firm strategy, structure and rivalry:

• Low entry barriers

• Intensive rivalry

Factor conditions:

• Huge workforce and low wages

• Available factories

Conclusion and Recommendation

• Many opportunities to bring Hollister from the USA

to India.

• By contrast, the US market and India market have

lots different factors that can bring Hollister

disadvantages compare to competitors.

• Overall, with a relevant strategy Hollister can has a

successful business in India.

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Available

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Questions Time

Thank you