What issues may arise when small luxury [fashion] brands try to expand globally and how can the risk of failure be mitigated during the execution of their global plan?
Introduction and Background of Research
In the world of business, the ability to achieve success can make or break any company. Whilst success can be measured differently, a common thread which runs through the foundation of many businesses, is the desire for business growth.
The purpose of this research assignment is analysing the different ways in which a brand can grow, particularly in relation to small luxury fashion businesses, as they endeavour to transform into global brands.
This assignment will review the different approaches a brand may take to drive its globalisation agenda, whilst highlighting key benefits, challenges and risks that a business may face during the execution. After evaluation, the assignment will conclude with key recommendations to mitigate risk and achieve success.
Nowadays brands can use many platforms to expand their businesses, from e-commerce to Instagram and this helps a brand reach its targets consumers across many continents and create global dominance within its industry sector.
Aneel Karnani from University of Michigan’s Ross School of Business, focuses his research on strategies for growth, competitive advantage and global competition. Mr. Karnani stated “Too many times, that kind of thinking results in adding a lot of new costs that don’t deliver new value,” (Jennifer Vessels, 2012).
His statement proves that there is a need for strategic planning pre delivery of a global expansion plan which is intended to drive incremental value to a brand/business.
The research questions in this project will address the different ways in which a small brand can adopt strategies to create a larger global footprint. The main topics for exploration will be:
In addition to the above, the benefits and disadvantages of using each type of strategy will be evaluated and a recommendation on mitigating risks will be suggested.
The Aim and Objectives
The research will explore the different strategies that can be adopted and platforms which can be utilized to transform a small brand into a global brand.
The analysis will highlight the issues, advantages and disadvantages of each of the main topics above which could be faced during the execution of the expansion plan, and suggest recommends to avoid risk of expansion failure.
The information from this research will support any type of small business looking to drive a global expansion agenda, as it will showcase the importance of brand differentiation in the market in order to drive global success ahead of the competition.
Proposed Research Methods
As the data received will be less structured, i.e., through secondary research content, this means quantitative research will allow for flexibility to evolve as the study continues. Given the assignment will conclude with recommendations, this research type will allow results to be presented subjectively
This is the main source by which the research will be founded, for the purposes of this assignment. A diligent approach will be taken to ensure reliable secondary research is used.
Project Plan, Budget and Timeline
The below Gantt chart shows the project plan, from the beginning of my research until to submission date. The budget plan is to use free secondary resources available such as library books for example. As per the Gantt chart, it is expected that each area will take approximately 15 days to be completed. For example, preparing the main content body will take me to complete.
Issues to be considered
As a majority of the analysis will be based on secondary research, I believe there are a few key areas which require careful consideration before information is relied upon:
Potential use of the research findings
The intended outcome for this research is to show the strategies and platforms that a small luxury brand can adopt to drive a global expansion agenda. The research will highlight the importance of a product differentiation and need for a clear target audience, when a brand intends on transforming into a successful global business.
The research can be used as a reference guide on issues that may arise during expansion execution, and steps available to mitigate risks of failure. The recommendations will suggestions how challenges can be overcome, to enable a small luxury brand to become a global market leader.
This assignment will present a clear format by which a small luxury [clothing] brand can transform into a global brand. Whilst the issues, advantages and disadvantages of global expansion will be explored, balanced and analysed; a clear set of recommendations will be presented, which also includes suggestions by which risk can be mitigated to avoid global expansion failure.