Discussion 1: International Strategies

You've developed a very popular, up-scale but reasonably priced, clothing fashion line for young people. You produce designs in a number of countries, manufacturing in low-cost locations, and with retail outlets in major U.S. and European cities. Demand is popping and you have access to plenty of production capacity and capital. Answer the following questions:

• How should you organize the business outside of the U.S.?
• Should you set-up reasonably independent companies, subsidiaries, in each foreign market?
• What would that do and not do for you?
• Or, do you want to impose a strict brand image, procedures, and central planning from headquarters, where your offices are?
• What are the pros and cons of this approach?

Discussion 2: Market Entry

Explain the First Mover Advantage and the six modes of entry into foreign markets. Identify a foreign market that you will be entering. What are the advantages and disadvantages of each? Identify the best market entry strategy that you will be using for the foreign market of your choice.