Uniqlo Essay

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Country Selection: (Brazil) To select between Brazil, India, and Turkey for UNIQLO’s overseas expansion, a simplified version of Honeycutt, Ford, & Simintiras’s model of cross-cultural potential assessment has been employed. Due to the size and limited research capability of this report, we have primarily focused on economic conditions, political/legal conditions, and domestic competition within our selection criteria. Please refer to the Appendix for the detailed analysis. In political and legal conditions, Brazil has a relatively stable environment with little governmental risks after decades of volatility. Although Brazil’s corruption and legal transparency are far concerned compared to Turkey, it compensates by providing the strongest economic conditions with the large GDP size, population, and income growth that favour domestic consumption. While India possess the greatest economic potential with its economic capacity, it will require many years to materialise under the government’s protectionism and its poor existing economic infrastructure. Furthermore, while India has heavy regulation holding-back foreign retailers and Turkey has already attracted numerous global retailers’ entries, Brazil provides the greatest competition score for UNIQLO as over 60% of its apparel industry is still fragmented with traditional retailers. Especially with upcoming events such as FIFA World Cup and Summer Olympics, expanding to Brazil will promise UNIQLO the greatest opportunities in the short-run and long-run. Market entry mode for UNIQLO in Brazil: To assess UNIQLO’s market entry mode to Brazil, we employed the Decision Making Process Model (DMP) by Kumar and Subramaniam. The DMP model considers various hierarchies of decisions that manager make for entry mode; the first layer being non-equity based and equity based entries. Please refer to the

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