The Pros And Cons Of Expansion

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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
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The advantage are the company can enter the foreign market with limited resources, transfer technology without huge financial obligation, profitable and attractive market due to powerful local policy restriction. The disadvantage that it is inflexible when the company needs to reduce numbers of the human resources during financial crisis and it should pay sanctions, it also may create conflict with local…show more content…
He opened its first flagship store in Dubai to support the brand in a commercial city with huge international customers who need to buy branded products. This was done through (third party / out sourcing) a well-known local company with an extensive experience and a wide knowledge of the local market. Also Saab chose the best manufacturers in Italy and France who have the ability to produce high quality RTW garments and deliver them on time to the retail shops around the world. By outsourcing ES will gain entry to the provider market, as well avoids the buyer company from unnecessary capital investments, gain efficiencies and increase profitability (Stank, Brazica,Ficenec 2009). As it has advantages, it also has disadvantages such as the vendor might become a competitor to the buyers especially if the vendor’s country has low wages and salaries with well educated people, migrations of the buyers production to the vendor country, unemployment in the buyers country and the risk of how to control the vendors to be integrated into the production targets(Dolgui,Porth,2013). ES group wholly-owned two flagship stores in Paris and Beirut were a very important entry mode as both selling haut couture and wedding dresses and accessories , they support the brand and they were

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