Business in Action Study Set 2
Quiz 3 :
The Global Marketplace
Company H should promote its "Swedishness" like other companies such as Company B and Company M. Swedish brands are specially known for their quality, reliability, safety and innovation. Since, the Company H offers standardized Swedish clothing that does not change according to local environment of a country. Therefore, Company should promote this aspect of their brand. It would definitely create a unique brand identity for the company and increase its competitiveness in the market.
In the days before mass media and digital communication Company H had succeeded in its global style strategy. Company H lacks quick adaptability to design changes unlike its main competitor Zara. In the days before mass media and digital communication people also were not updated regarding the changes in fashion trends. Therefore, they used to purchase the clothes that were out of fashion. However, today quick access to information has enabled the consumers to update themselves in terms of fashion changes. Hence, Company H's global strategy has remained no longer successful.
Company H uses self-funding for international expansion of its stores. It does not borrow money from the creditors or financial institutions for its expansion. This practice affects the decision making and expansion efforts of the company as the company would not face any interventions from the third parties. Furthermore, the company does not need to share its business plans and strategies with the financial institutions or creditors to get the loans. The company can take self decisions and instantly execute them without any delay. Thus, self-funding helps Company H to take independent business decisions.