Business Strategies: Business-to-business Marketing

 

Business-to-business marketing is considered by companies to be a sound business strategy and more so when the electronic means is utilized (Ramsdell, 2000). For buyers, B2B marketplaces promise not only to deliver more competitive prices but also to rid the supply chain of a host of inefficiencies. For sellers, B2B creates a channel for their product distribution thus minimizing the cost of transaction attained when they themselves engage with the end-users of their products.

In business-to-business trade among buyers and sellers, the relationship involves complex products traded where there are high levels of inter-dependencies. In these situations it is necessary to co-operate in order to maximize the opportunities for the network of companies, and to build in protection measures against opportunistic behavior, either through trust developed over time, contracts, or a combination of both (Agrawal and Pak, 2001; Ramsdell, 2000; Hollad, 1996).

Factors such as trust and reputation are critical, and there is also the notion of cooperative strategies based on mutual benefit rather than the simplistic idea of maximizing revenues to individual organizations (Farrely and Quester, 2003; Archer and Yuan, 2000; Abramson and Ai, 1999). There is widespread research and anecdotal evidence of the importance of relationships in business-to-business markets and concepts such as the virtual value chain (Rayport and Sviokla, 1995) and cooperative supply chain structures (Holland 1996) extend the theory to market networks of separately owned organizations choosing to work closely together.

In practice, relationships in business-to-business marketing have come to mean trust that results in protective and complementary relations in Asia, and will thus include the sharing or pooling of resources (Hamzah-Sendut et al, 1990 in Abramson and Ai, 1999, p.10). These factors are all part of the Asian concept of guanxi, the six key constructs of which being: Mutual trust between parties; Commitment towards mutual benefit; Empathy towards all parties; Maintenance of relationship; Provision of favors to partners; and Full reciprocation of favors; (Abramson and Ai, 1999, p.10).

Two adjacent players--the buyer and the seller--usually share information at each stage of the supply chain and transaction process, and the nature and amount of what they share depends on the quality of their relationship (Agrawal and Pak, 2001). Thus, the successful exchange of information in the transaction of B2B reflects the amount of investment and trust buyers and sellers bestow to each other.

The B2B relationship is even more controversial in the emerging market of B2B retailing. The business is lucrative where Internet business-to-business sales will reach $1.3 trillion by 2003 and; by 2004, business-to-consumer sales will reach $100 billion (Lord, 2000). Aside from the potentially huge market offered by the internet, E-commerce technologies provide effective and efficient ways in which corporate buyers can gather information rapidly about available products and services, evaluate and negotiate with suppliers, implement order fulfillment over communications links, and access post-sales services (Chaston and Mangles, 2003). From the supplier side, marketing, sales, and service information is also readily gathered from business partners. Building and maintaining B2B relationships is the key to success in e-commerce and, unless service is maintained, customer loss may result, more than offsetting any cost efficiencies due to introducing e-commerce technology (Archer and Yuan, 2000). Since the core of e-commerce is information and communications, support for managing customer relationships particularly trust is of primary consideration in the buyer-seller relationship (Archer and Yuan, 2000).

Although there is some evidence of a move towards electronic markets, there is also strong evidence to support the hypothesis that electronic communication technologies will forge closer relationships rather than create more fragmented ones. This is particularly true in business-to-business markets where the levels of interdependencies between buyers and sellers are typically extremely high compared with business to consumer markets (Johnston and Lawrence, 1988, Konsynski and McFarlan 1990).

Impression Management - Goffman: Presentation of Self in Everyday Life

Goffman: Presentation of Self in Everyday Life

Part 1: Concepts

1.      Impression Management

Erving Goffman prepared the key ideas behind the discussion on the values wherein the ideas in theorizing the social roles and relations that are present in the contemporary society. According to the book of Goffman, a person can demonstrate a role that can be also varied depending on their audience or the people around them. Those individuals as actors have an intention in manipulating the role that they play in aim to provide the others’ impressions pertaining to them. Usually, this occurs through the interaction of the individuals in their everyday life (Barnhart, 1994). Since the society presents the interactions that usually matters with the human social relations or group of life, there is a natural involvement of disciplines that goes right with the study of sociology including the economics, political science, and psychology because they all fall within the topic of human society. 

2.      Front stage and Back stage

Goffman’s dramaturgical model is seen and plays a valuable function in understanding the relationship within contemporary society. It is often referred as a concept that has mirrored the aspect of sociology (Giddens, 2009). Goffman’s elaboration on the ‘front stage’, ‘back stage’ and ‘performance’ addresses the functions in the society and is in part in the idea of social interactions and form a culture. Through this function, the society can understand the certain level of understanding that shapes the social interactions with others. Through Goffman’s work, the theories and relationships is discussed to recognize the power that shapes the social relations. In addition, the methodological choice of Goffman is filled with criticism and doubts regarding the validity of a research method. It is described that the research method Goffman established overemphasized the metaphors and paid a little scientific investigations in the social behavior. The use of metaphors as a form of analysis and describing the phenomenon in the society is an outline of the dramaturgical model, although being question in the validity of his theory, is still valued in the entire society.

3.      Performance Team

Goffman, presented the theory that tells us about the capacity of an individual to engage in manipulating their role in the society in several aspects. According to Goffman and his ideas towards the theatre regarding how the “individuals are, in essence, dramatic actors on a stage playing parts dictated by culture” and this explains on how the presentation can be accepted because of the emphasis on manipulation. Through the use of talents and the experience of those actors, they can be successful which in return; their role can be established for their audiences. Goffman emphasized the idea about the key on this successful performance which drives from their ability to control various information that audience has accessed to (Goffman, 1959).

4.      Barriers to Perception

In the shade of interdisciplinary fields, the oldest and most important would be the social psychology in which Goffman justified through explaining the things around and at present through the simple interaction. Actually, it is considered that the social interaction of the individuals is a separate discipline for the practitioners on the fields of sociology and psychology.  In the role of sociologists, they are primarily concerned on the social norms, and the structure of groups, while on the other hand, the social psychologists focuses on the roles and social norms or the elements found in sociologists and recognize the impacts of the individual personality (Barnhart, 1994). Many experts in sociology have studied the interaction that emerged smaller groups; such as their beliefs and understanding the attitudes within the population; and the shaping of personality through the experience of socialization, or the formulation of character and outlook under the influence or interaction with the family, education, friends, and others like the involvement on other social activities. The work of Sigmund Freud and his contemporaries in the field of psychoanalysis created significant contribution in the field of psychology. This might be also played a significant part in the study of Goffman in presenting one-self. 

Part 2: Applications

(1) What are the implications of impression management and identity management for both professional and personal settings?

Unlike the sociological theories wherein the individuals are linked with the disciplines early states, Goffman’s dramaturgical model outlines the existence of the human’s perspective on the stages where as an actor he usually plays. Giddens (2009) explains that there are situations within which an individual can act formal roles that is essential to present themselves. The performances, like the theatre sometime needs teamwork just to be successful. Managing the impression is an important concern of the actor or individual to deliver the kind of impressions about him. According to Goffman, he suggested that “when an individual appears before others, he will have many motives for trying to control the situation”. However, at the back of the stage or the contrast of what an individual shows, he is preparing for the role he is going to play. With regards to the theatre roles (profession), the individuals involved usually discuss and rehearse their performances before the presentation. To emphasize their roles, there are props which can be used and design appropriately for the actor and establish their role within a performance. The function of those props in general, is to assist the role of the actors and convince the audiences that the actors’ performances are true.

(2) What are some of the privacy and ethical concerns?

Actually, Goffman focuses on how the men are interacting with the society and his environment which mainly involves the changes in the objectives. In today, the development in the society came to the point where in the discussion leads to “human security” which became the certain aim and role of the networking sites, nowadays in order to develop the multidimensional activities. Through the development of the multi-dimensional activities in peace, the development in the social environment is aided. Furthermore, the changes in the international setting which affects the local and global norms of society are also enhanced. Therefore, a new generation of society is formed which is more focused on the issues of ethical considerations, security methods, conflict resolution and transformation of information (Mujtaba, et al., 2004).

(3) What are some of the other related social issues brought about by social media (for example, cyberbullying)?

Within the theories of sociology, there is a partial reversal of the previous direction of influence has occurred, with theoretical currents once again and the different ideas of sociologists. Aside from the changes in the society, particularly the introduction of social media, there are issues related to the theoretical diversification which introduced other concepts or subfields in the sociology such as the role of genders and its inequalities, relationships, interactions, aging, and so on (Mujtaba, et al., 2004).

(4) How applicable are Goffman’s concepts in today’s networked society?

Goffman’s works impressively left a great contribution in sociology and explaining the interaction of individuals as much as giving the light emphasize on how an individual represents in the crowd. Therefore, his part in sociological field of work is utilized to use as basis in developing the society in a most attractive way. The study of Goffman in explaining the behavior and attitudes of an individual and their significance in the entire society resulted in the dramaturgical model which interpreted on how an individual acted on his “audience” or other people. Despite of the representations that this model created in explaining those various attitudes and its connection with the changes and developments in the society, still, it creates a good structure on how an individual can act in front of others and gives the social networking sites to connect them.

References:

Barnhart, A., (1994) Erving Goffman: The Presentation of Self in Everyday Life [Online] Available at: <http://www.cfmc.com/adamb/writings/goffman.htm> [Accessed 04 Aug 2011].

Giddens, A., (2009) Sociology (Sixth Edition). Cambridge: Polity.

Goffman, E., (1959) 'Performances' in The Presentation of Self in Everyday Life, New York: Double Day Anchor Books, pp. 22-30.

Mujtaba, B., Griffin, C., & Oskal, C., (2004) Emerging Ethical Issues in Technology and Countermeasures for Management and Leadership Consideration in the Twenty First Century’s Competitive Environment of Global Interdependence, Journal of Applied Management and Entrepreneurship, 9(3): 34

Cross-Cultural Management: Impacts of Culture on Beer Advertising in Hong Kong

1.0 Title

            The working title is initially drafted as – Impacts of Culture on Beer Advertising in Hong Kong. Basically, the report explores how culture affects the process of advertising beer in Hong Kong context. Hong Kong is one of the two special administrative regions of China which is often described as East meets West because of the mixture of Chinese roots and influences from the British Empire.

2.0 Introduction

The existence a “community-specific factors and their absence in other cultures” (Dagut, 1981) challenges the companies and advertising agencies. Advertisers can translate concepts and then explain the content of advertisement. In some cases, the advertisement can be substituted with another concept that will still have a similar effect and response. In order to achieve the same message in the target language or market, cultural elements must be translated properly to get the equivalent response. The message of the advertisements must be acceptable to the norms of the culture in a certain level of equivalence or correspondence (Toury, 1980). The translation of the message in a different language and the use of specific word for a certain product in a particular culture is a form culture translation (Bezuidenhout, 1998). However, the process f translating ideas may ruin the existing morals, values and beliefs of a particular culture.  These can influence the message and its perception in a wider sense.

Further, it is said that in a competition, “those who best persuade are those most likely to win” (O’shaugnessy & O’Shaugnessy, 2003).  The effectiveness of advertising through persuasion must be conformed to social norms, values and valued images. The persuasive advertisements need to grab the attention of the receivers either by conventional or unpredictable approach suggesting appropriate actions. People are more likely to respond to situations and ideas that are of their cultural orientation. Cultural elements in persuasive advertising can be understood through its signification and meaning of the target culture (Bezuidenhout, 1998).

Having said all of these, how a beer manufacturing companies can possibly persuade Hong Kong consumers considering the influences of cultural elements in the consumption decision-making process is not known. It is the goal of this report to investigate how cultural elements situate itself in beer advertising particularly among Hong Kong nationals.

3.0 Methods

The report made use of an archival, library-research method. Contents from published articles in books and journals are collected. The sources of the secondary data included books and journals, theses and related studies, official statistics, and magazines and newspapers. Internet databases were also consulted including Questia, Highbeam and Emerald. Interpretation was conducted which can account as qualitative in nature. Boolean technique is used as a key data collection method.

After gathering empirical data, contextual or thematic content analysis of the literatures was adopted. Contextual analysis refers to the method of analysing the contents of literature and research and identifies how the themes relate to the study. Qualitative data analysis was used to collect relevant themes from the analyzed data and categorize them accordingly. From those themes, the study developed insights regarding the subject. This type of analysis is highly inductive as the themes emerge from data and are not imposed by the researcher or evaluator.  

4.0 Results

In 1970s the demand of the Hong Kong nationals towards beer had grew forcefully. That is due to the fact of the import of the labor from the mainland China. Unfortunately, by 1980s, the economy of Hong Kong had begun to succeed and helped the Hong Kong nationals to become more educated as well as wealthy; eventually it had helped to drop the ration of the blue-collar workers.  The said event had affected the beer industry in Hong Kong, that had lead to a slow and no growth at all (cited in Speece & Kawahara 1994, p. 10).

The per capita consumption of beer of the Hong Kong nationals is comparatively low when compares to the standards of the Western people (see appendix 1 for the comparison). In 1992, the average consumption of beer of the Hong Kong nationals has reached 29.8 liters. The said demand for beer had decrease compare to its demand from 1990 that ranges from 28 to 35 liters (cited in Speece & Kawahara 1994, p. 11).

The buying behavior of the customers towards beer depends on occasions as well as to the brand of the beer. Tsingtao beer is considered as the lowest of them all, tourists are just availing the said beer in order to feel and experience the real China. On the other hand Carlsberg that is made in Denmark is considered as the beer of the bar as well as the beer of the night. It is belong to the social rank that is higher from San Miguel (Matthews & Lui 2001, p. 122).

San Miguel Beer is considered as the mediocre beer, meaning it does not belong to the lowest social status, or the upper class. Beer is considered as part of the life of the Hong Kong nationals. It generally perceived as the cheap brand. Primarily, it can be said that San Miguel is one of the most affected beer brand in Hong Kong, by the affluence of the Hong Kong nationals. It had slowly but steadily lost its market share in Hong Kong (cited in Speece & Kawahara 1994, p. 11).

According to the study that was conducted by Speece & Kawahara (1994), the blue-collar respondents are the one who drinks most per in a month. Unfortunately, it also had showed that their average of 12.5 bottles or can per month is not sufficient to stand for high consumption. In addition to that, it had also showed that the professionals or those respondents who are from the upper management had reported to consume about 9.4 bottles or cans in a month, 7.9 for the white collars or those clericals and 4.1 for the students (p. 13).

5.0 Discussion

            The primary marketing strategy that has been applied by the beer companies to their relationship with their customer is their ability to act as local, where in the customers had been able to feel that the beer companies has originated or owned by their country. Another important thing is that the beer companies also use the settings and the culture of the Hong Kong national in creating and implementing their different marketing strategies such as their advertisement. Beer companies are still targeting their customers by means of the traditional culture of the country. The commercial of the products pertains to the local and familiar settings that evolved in the culture of the Hong Kong nationals. In addition to that, it also uses clear narrative storylines (Matthews & Lui 2001, p. 123).

Beer companies had been able to had famous people or personalities to represent their brand, for example is the hilarious television advertisement of Stephen Chow that shows the sensuality of a girl, at the same time, bringing out the sense of humor of Stephen Chow (See appendix C for the preview of the TV ad). The campaign had been launched via the way of print, outdoor, the direct marketing as well as the activation executions (Yin 2007). The beer companies had also changed their tagline from Come Together With San Miguel Beer to Camaraderie like No Other (Yin 2007).

In addition to the said strategy, the beer companies are also into sponsorship and other related strategy. They are engaging into different gigs and celebration in order to show or they represent their products to their customers.

Another important marketing technique of the beer companies is their pricing. San Miguel beer is considered as one of the cheapest brands of beer in Hong Kong. It had been a great help for the beer companies since it can be availed by those consumers who are into blue-collar job or those who belong to the lower level of management. Unfortunately, the said strategy had caused the beer companies some disadvantages, and that is due to the fact that price of beer had caused to create a social status division among the brands of the beer. It had affected the image of the brand, due to the major change of the standard of living in Hong Kong.

6.0 Conclusion

            In sum, changes on the preferences of beer consumption are culture-related. It had been affected by the major force which is the culture change due to the improvement of living in the said country. The said change had affected the overall image of the product, therefore had affected the sales and demands of the said brand.

7.0 References

Bezuidenhout, I. 1998, A discursive-Semiotic Approach to Translating Cultural     Aspects in Persuasive Advertisements.

Dagut, M. 1981, Semantic ‘voids’ as a problem in the translation process, Poetics Today, Vol. 2, No. 4.

Matthews, G. & Lui, T. 2001. Consuming Hong Kong, Hong Kong: Hong Kong University Press.

O’Shaugnessy, J. & O’Shaugnessy, N. 2003, Persuasion in Advertising, Routledge

Speece, M., Kawahara, Y. & Stella, L. M. 1994. Imported Beer in the Hong Kong Market, British Food Journal, 96, 1, pp. 10-18.

Toury, G. 1980, In search of a theory of translation, Tel Aviv: The Porter Institute or Poetics and Semiotics.

Yin, S. 2007, August 22. Brand Republic, Media Asia.

Esprit - Where Next for the Icon of Hing Fat Street Retailing?

Introduction

In the fast fashion industry, it is important for the firms to have an active response in the needs and wants of the target market in order for the firm to remain in the competition. However, most of the companies might not keep it up in the tight competition especially when in terms of low cost production and providing the high quality output at the same time. The fashion conscious consumers more likely admired the firms that can initiate what they need and because of the sophisticated tastes of the consumers, it has been a challenge for the firms to respond and even setting trends. Therefore, it leaves an impression that the firm must act and should follow the changes in the market since the business’s growth is dependent in the market.

Repositioning Strategy

In the journey of Esprit, the organization initiated Six Strategic Initiatives in which the company can draw its source for competitive advantage. By reviewing these initiatives, the organization can start its progress well. The six initiatives are the important factors that can also reshape the brand position of Esprit. The six initiatives namely – global brand, products, channel and country cost, support functions, and organization - are good indications that Esprit has a clear objective in their business venture (Esprit, 2010). However, it is important that the company can continue to upgrade their performance to avoid the confusion in the market as well as the negative perceptions. Therefore, the firm must strengthen their brand name that will target the idea on how the organizations what the market see their products. Esprit should optimize their business approach through precise production and logistic strategies which is an important requirement to identify their supplier and create a tactic in the fast fashion industry (Peterson, et al., 2010). In addition, there should be a clear brand position to emphasize the perception of the core targets. In addition, the perception should be also essential in terms of functional and non-functional benefits for the consumers within the fast fashion industry. Esprit can also adapt the points or positions that can be found among their consumers and competitors (Sengupta, 2005).

Sustaining Competitive Advantage

The fast fashion industry means that the firms has a fast response in the consumer’s needs but this is not only through the name because it generally affect the retailing industry and thus changes the production, supply, supply chain management, and the overall sales in the industry. Therefore the fast fashion ideals are considered to be a retailing business models (Seigle, 2011). Moreover, the retailers can now be easily found among the high-streets and thus it is also referred to as “high-street fashion”. The advantage on this position is probably due to the inspiration in knowing what the consumers are seeking for. The trend and the continuous changes in the market can be easily appreciated or anticipated in the fast fashion industry and there after providing the quick response. This tends to push the firm in getting the quickest supply chains as much as possible and effective logistics as well wherein every part of the production cycle are expected to produce the output that will suit the taste of the market. Through this market, Johnson, Scholes, and Whittington (2005) considered that time is an important factors which makes the fast fashion industry competitive, challenging, and have a lot of potential.  The competitive advantage of the European franchisors can be found in the supply chain management, branding, service, and the quality of their products. Apparently, there are other apparel brands that already made a name in Hong Kong market namely Giordano and Esprit because of the strategy in combining the international management skills and understanding the foreign market. With this implication, the franchisors became fiercely competitive and offers apparel with the fashionable design and in the level of competitive prices.  Esprit has a theme in competing within the value-for-money segment which held a direct competition with the fast fashion industry for high-quality, fashionable ladies business wear, although it subsequently expanded into casual wear (Hayes, et. al., 2005).

In the competitive landscape of the clothing lines and apparel, the geographic distribution can be the most important part of both domestic and foreign business. In Hong Kong, Zara and Bossini can use the strategies left by two largest brands that currently dominating the country. Li-Ning and Esprit created a strategy wherein the products are sold in various cities that were differentiated and targeted towards their specific target or customer group. However, Zara and Bossini should also expect that the product differentiation strategy should manifest in the country thus, allowing the businesses to engage in the said strategy rapidly (Ghemawat, and Nueno, 2003).

Positioning Strategies for Different Markets

In terms of discussing the competitive advantage, it is more likely applicable to sustain more of Esprit strategies (six initiatives) that of eroding one aspect of it. According to the Esprit Interim Report (2010), the organization understands that the cost of goods sold should be strengthened such as gaining more savings because of their approach and good relationship with the suppliers. However, when it comes in positioning strategies like in Europe, the firm sought a great advantage in their performance because of their Generalized System of Preferences (GSP) that were applied on textile imports to Europe that were originated from most of the developing countries. It plays a significant role in fast fashion because the idea lies on textile and clothing and how the business can embrace the latest fashion (Peterson, et al., 2010). In addition to Peterson et al (2010) study, there is a promising future for Esprit (as well as other fast fashion organizations) in China and Hong Kong markets because of the good supply chain that nestled in these Asian markets.  However, Esprit should at least reduce the risk that the business might experience. Since China and Hong Kong markets have a positive approach in competitive retailers, each organization is bound to employ their strategies towards precise production, logistics, and dynamic approach with their supply chain management.

Growth Strategies in China

China is at the core of Esprit’s long-term strategy and in 2010, the firm realized a strong turnover growth of 5.9% in local currency from the China subsidiaries. China is also a part of Esprit’s strategy to become a truly global brand and a geographically diversified company (Esprit, 2010). Within the initiative of the firm in channel and country, the firm assured that the management already prepared a growth plan in China which can aid their position towards the fastest growing apparel market. At present, Esprit successfully acquired one portion of Chinese market which enables them in integration phase and thus focusing on accelerating the businesses. The positive outlook of Esprit in Chinese market is supported by Harris and Cai (2002). In Harris and Cai’s (2002) study, the authors highlighted the importance of market driving approach which allowed the international business to play in the Chinese market. It is important that the marketers understand that two important factors which allows the firm to improve their performance. Chinese market is a potential market for Esprit since there is a strong market growth particularly in fast fashion industry (Peterson et al., 2010). The growth strategies of Esprit in Chinese market lead the firm to open new sourcing office for Central and Northern China in the Spring of 2011. Also, Esprit also developed direct relationships with main fabric mills and accessory suppliers and is transacted with direct negotiation (Esprit, 2010). The fast fashion business is subsequently coordinated with the retail businesses and manufacturing organizations. Therefore, the fast fashion businesses like Esprit should manage the supply and as well as the needed adjustment sin the supply chain in order to improve the production while reducing the cost of production in the Chinese market. There are difficulties that manufacturers and retailers might face in the fast fashion business but it is important for Esprit to secure the competitive advantage within this market if there are changes in the Chinese market that might create an impact in their market position (Peterson et al., 2010).

It is possible for the firm to transfer their competitive strengths to other markets if the two factors were only be established – customer familiarity and preconceptions of product characteristics, and the extent of market control (Rajagopal, 2007). It is important to determine the movement of the market to have an insight with the nature and dynamics of the drivers of market. Upon determining the two market driving approach, Esprit can definitely include the market sensing, changing customer preferences, channel control through relationship, and the local sensitivity (Harris & Cai, 2002).  

Forward Integration

Based on the study of Peterson et al., (2010), the firms that play in fast fashion industry should recognize the use of business model. The appropriate business model can present various solutions and strategies towards better understanding in terms of time management (e.g. seasonal production of clothes) and the cost that are associated in producing such product. Furthermore, the firm’s reaction towards the changes in fast fashion industry and their association with the suppliers can create broader insight for Esprit to prioritize the textile and clothing processes, as well as its management and innovativeness which makes the firm remain competitive (Peterson et al., 2010). However, in terms of using the forward integration, there are many possibilities that a firm might realize. As part of the strategic management, forward integration is a business strategy is a form of vertical integration. The activities that are included in the business include control of the direct distribution of products because the buyers are used in formulating the core strategy of the business (Investopedia).

The advantages in forward integration consider the identification competent suppliers, ability to reach the end customers and have a better access in the information particularly about the end customers. Other advantage includes the lowered cost structure on the production and better differentiation strategies, enhancements and standardization of the product quality, and the improvement in production and distribution scheduling. However, forward integration has its downside effect which can also increase the cost once the changes in the market has been realized in the production, fast-changing technologies, unpredictable demand, and weak or inappropriate business model (Sharma, et al., 2009).

In fast fashion industry, there are two organizations that applied the idea of forward integration (for some vertical-forward integration) are H&M and Zara. Although these firms are different in the outsourcing production, spending, advertising, and pricing strategies, they still share the fashion forward which enabled them to lower the prices for the retailers and creates a strong capability in international expansion (Craig, Jones, & Nieto, 2004). Actually, there are numerous of firms that are promoting the integrated structures to provide the value products for the wide range of consumers. The forwards integration, on the other hand, enables the managers in the fast fashion business to layout, categorize, and maximize the products that will match within the location of the store (Gallaugher, 2008).  If Esprit can adopt the forward integration there is an expected further enhancement of sales and effectiveness of the organization through embracing the latest fashions and limiting the stock of items. Henceforth, there is an optimization of business approach and focuses in moving forward with hard line buying and sourcing standards (Peterson, et al., 2010). 

Conclusion

In the recent strategic approach of Esprit, the firm acknowledged the challenges such as the substantial increase in cost of raw materials, wage inflation, shortage of talented laborers, and retailers. Still, if the appropriate measurements were taken, the firm believes that they would be in a strong position in terms of giving values to their customers. Esprit dedicated its business performance for its customers by providing thorough reports and enhancing the attributes of the product in terms of the “value for money”. Despite of all their initiatives, Esprit must also consider the various strategies in which they can draw their competitive advantage.  

References:

Craig, A., Jones, C., & Nieto, M., 2004.  ZARA: Fashion Follower, Industry Leader Business of Fashion Case Study Competition [Online] Available at: <http://www.philau.edu/sba/news/zarareport.pdf> [Accessed 27 June 2011].

Esprit, 2010. Interim Report, Six months ended 31 December 2010 Hong Kong Stock Code 00330 [Online] Available at: <http://jrj.com.cn/acc/HK_DISC/stock_time/2011/03/15/001164466-0.PDF> [Accessed 27 June 2011]. 

Gallaugher, J.M., 2008. Zara Case: Fast Fashion from Savvy Systems [Online] Available at: <http://www.gallaugher.com/Zara%20Case.pdf> [Accessed 27 June 2011].

Ghemawat, P., & Nueno, J.L., 2003. Zara: Fast Fashion, Harvard Business School [Online] Available at: <http://wehner.tamu.edu/mgmt.www/v-buenger/466/zara.pdf> [Accessed 24 June 2011]

Harris, L.C., & Cai, K.Y., 2002. Exploring Market Dricing – A Case Study of DeBeers in China, Journal of Market Focused Management, 5(3)

Hayes, R., Pisano, G., Upton, D., & Wheelwright, S., 2005. Operations, Strategy and Technology: Pursuing the Competitive Edge, New York: John Wiley

Investopedia.  Forward Integration [Online] Available at: <http://www.investopedia.com/terms/f/forwardintegration.asp#ixzz1QSZLSFkM> [Accessed 27 June 2011].

Johnson, G., Scholes, K., & Whittington, R., 2005. Exploring Corporate Strategy, 7th Ed., Harlow: Prentice Hall.

Peterson, J.H., Chang, J., Wong, Y-H., & Lawrences, C.A., 2010. The Emergence of the Fast Fashion Business Model and Imposed Quick Response Challenges for Chinese Fabric Manufacturers. Innovative Quick Response Programs in Logistics and Supply Chain Management, International Handbooks on Information Systems. Berlin: Springer-Verlag.  

Rajagopal, 2007. Marketing Dynamics: Theory and Practice. Mexico: New Age International Publishers

Sengupta, S., 2005. Brand Positioning: Strategies for Competitive Advantage, 2nd Ed. New Delhi, India: McGraw-Hill Companies.

Sharma, A., Wazir, S., Chhikara, D., Diengdoh, M., & Mukherjee, R., 2009.  Corporate Level Strategy: Strategic Management [Online] Available at: <http://www.slideshare.net/rahul147953/corporate-lavel-strategy> [Accessed 27 June 2011].

Siegle, L., 2011. Why fast fashion is slow death for the planet, The Observer [Blog] Uncover the Marketing Model adopted by Major Fashion brands – the darkness of “Fast Fashion”, [Online] Available at: <http://blog.ikou.me/2011/05/uncover-the-marketing-model-adopted-by-major-fashion-brands-the-darkness-of-fast-fashion/?lang=en> [Accessed 24 June 2011].