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Entry Strategy Case Study

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Qustion;2

Explain the company’s current entry strategy stating the pros and cons for each entry mode, and discuss whether the company target is ‘Affordable in the luxury market’ given your overall recommendation for ES.
ES group grew through various modes of entry and signed agreements with several companies, he signed agreement with Beaute Prestige international for fragrance and cosmetic license contract to create a fragrance by the name of ES to develop the brand and the portfolio. Through the agreement the BPI will be the licensee and ES will be the licensor, According to the agreement, the licensor will gain in terms of (revenues and a strategic marketing for the product), protection of the proprietary rights through the efforts of …show more content…

Its main advantage is that the owner receives full retain and has a complete authority to control the operations of both stores. Also, “ wholly–owned stores offer the highest levels of control and the lowest of technology risk, however they require the highest resource commitments” ( Gregory,Osland,and Taylor p. 158 ) .
The most current entry strategy of ES was concentrated on RTW (including wedding dresses) and accessories for example the aims of outsourcing RTW line production as it is not a core business was to improve the core business through the advantages of outsourcing mentioned above, by reducing cost of operating, reducing capitals funds in noncore business functions more funds will be available to core business. (Stank,Brzica,Ficenec, …show more content…

Secondly continuing the use of the third party strategy to distribute RTW and accessories to new market starting with Asia, North America as they are the lowest percentage in company’s sales in 2008 (B713 TMA04 second semester 2016 .p.13) , as this strategy leads to cost saving and improve the company’s cash flow. (Dolgui ,Proth

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