It gradually becomes a national trait aligned with cheaper labor force that attracts the developed countries. In other words, the developed countries are willing to progress manufacturing outsourcing in China. Moreover, market demand boosts in the stage of economic development, therefore, there are massive amount of potential opportunities occurring in the market place. With increasing amount of the FDI, China is constantly absorbing knowledge and learning skills from innovative technologies and trying to help local business development. As a result, the GDP is rapidly growing since 1995 (World Bank Data 2017), which indicates that the purchasing power of customers is sharply boosting in the domestic market.
PESTLE A market is the place or medium where specific activities are transacted between businesses and consumers. To study the macro-environment (i.e., external environment), PESTLE analysis is considered to be the most appropriate as suggested by Kotler and Armstrong (2010). 2.1.1. Political The current UK Government has made business conducive for the retail sector (UK Trade and Investment, 2014). In addition, the UK government has relaxed tourist visa application laws for large consumer countries such as China, the benefits of which are explained below (Davidson, 2015).
In this context, US policies offer Nike the opportunity to modernize their product (Research and Markets, 2007). With the policies of the government which offer low-interest rates, the competitiveness of the tax system and stable currency conditions assist the Nike growth. Nike gets the opportunities to advance the growth of business when the most market politic is in stable condition. The free trade policies promote better market penetration overseas. In infrastructure development, the government has helped a lot to the developing countries, thereby gaining an opportunity to Nike expand the range of market.
It has been around and shaped our life for thousands of years. In global world, corporations can copy and succeed .Global competition shows that imitators end up winners and global copying is now not only far commoner than innovation in business, but a surer route to growth and profits. However, today 's companies obtain their competitive advantage and economic interest largely from innovation. Apart from that, we can state product innovation advantages both to the company and to industry respectively. (Nebojša Zakić, 2008) Product innovation may increase companies ' knowledge inventory while its contribution to company outcome which can be determined by sales and profits, new products/ services and also by changes in market share.
The demand on labor from companies and factories was increased as increasing business. World Bank showed, ‘The GDP growth rate jumped to 11.1 percent from 1994 to 2000(World Bank, 2004:13).’ With the increased GDP, the Vietnamese solved the problems of food and clothing. The Vietnamese economy achieved its highest economic freedom score ever in the 2015 Index (The Heritage Foundation, 2015). However, there
New items that address the needs of potential clients, which thus expands the client base. IBIS World (2017) states that this industry is helped “by the slight uptick in demand for energy-efficient appliances stemming from tax credits for these products.” Current development of the economy in contrast with other economies shows an opportunity for an increase number of foreign financial specialists to put resources into the business sectors. Financial assistance provided by the government on the reliability of business plans. Existence of government entities that deal directly with entrepreneurs, creating network opportunity (Conner, 2013).
After the second World War, mass tourism increased substantially. Its first real boom, mainly experienced by the western countries, was related to the economic development of society and to the increase in number of tourism services and recreational opportunities. Throughout the years, tourism has impacted positively on the world economy and on the countries’ national balance of payments. As estimated in Francisco Vellas’ economic analysis, today world tourism represents over 45% of tourism 's total contribution to GDP (Vellas 6). In addition, the tourism industry accounts for the creation of new jobs, especially for young people.
During this time period, real per capita product in the United Stated more than doubled and real Gross Domestic Product multiplied by over 7 times (Lamoreaux, 2010). The higher growth rates of total relative to per capita Gross Domestic Product indicate that the economy grew more by adding new inputs than it actually did through increasing productivity. The fast growing markets of the United States provided new opportunities for profits that entrepreneurs responded to. For instance, Andrew Carnegie responded to the opportunities and created Carnegie Steel and he
Attaining new highs and lows over the previous month can increase the daily turnover significantly as similar as the results of Kaustia (2004). The effect is very significant for all subsamples of this paper, where new highs are more important by comparing their estimate
H&M has the expansion strategy to open 10-15% more stores per year. H&M’s number of stores has increased under its brand (such as Cheap Monday, Weekday H&M and much more) due to their current expansion. H&M are pursuing licensing and wholly owned subsidiary as a mode of entry. Wholly Owned Subsidiary is one of the modes of entry that H&M are currently pursuing and the reason why H&M are pursuing wholly owned subsidiary in Singapore and Malaysia is, because those countries are politically stable. H&M gained competitive advantage of low risk and constant profit margin in Singapore and Malaysia, because it is politically stable.