Essays on Comparison of two Markets - Europe and China Case Study

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The paper "Comparison оf two Markets - Eurоре and China" is a great example of a marketing case study. The development of international business has heightened the need for international market selection especially for companies marketing strategies. Companies are therefore in the race to comprehend the geographical, demographical, economic, social and political characteristics as compared to their home countries. The decision on which marketing strategy to employ in the international market has triggered studies to create an optimal approach for the foreign market entry. This case study is therefore designed to evaluate and determine the most appropriate market place for the Australian company either in Europe or China.

In addition, this case study suggests specific recommendations from the analysis of the different levels of the business environment in the two entities to provide a robust map of the market's prospect and the conditions of the brand. In this context, managers from the company will be equipped with a comprehensive evaluation of the future of market places in order to give priority to the most appropriate market destination. The achievement in determining the optimal market destination for the Australian company is based on the comparative analysis of financial, economic, political, legal and cultural environments between Europe and China. The R. M Williams Company was established in 1932 aimed at upgrading the leatherwork and craft.

The company's commitment and trials enabled it to produce fashioned boots and later specialized in the production of luxury goods. Eventually, the company was able to invest heavily in footwear and other equipment registered under the company's trademark. The technological advances enhanced the diversification of the market to other regions and new markets in foreign countries.

In addition, R.M Company expanded the number of outlets and stores with at least 800 stockists across the world as well as retails stores around Australia. From the inception of the company, it enjoyed the skills and lifelong dedication of the staff who passed their knowledge from generation to another. Through the evolution of marketing strategies from mail-order, catalog into e-commerce business R. M Company launched online marketing to ensure that the company reaches out to their clients, helps them make choices and contributes to the success of the company.

The status quo in the company allows their brands to reach more passionate customers around the world. However, owned by the LVMH, a luxury goods company is now a key player in luxurious leather goods and wines and spirits. Besides, the mega-brands from the company are drawing inspirational and emerging markets demand in turn contributing to faster growth and superior margins. The company takes advantage of them being the first mover in the industry to push its brands ahead of the competition. In this case study, the aim is to recommend the best market for the company either in Europe or in China with respect to the trade of leather goods. Economic and Financial Environment Comparison The economic and financial environment of a given country is measured by the micro and macro-economic factors that influence the total make up of the entire economy.

In this context, the micro-economic factors such as market size, suppliers, demand and supply influence business activities. In addition, macro-economic factors such as inflation, tax rate, current exchange rates, unemployment rate, recession, and depression contribute to the success of the economy or lead to economic meltdown if not well managed.

These economic parameters are useful in rating the economic and financial environment in Europe and China in the bid to establish the best market for LVMH companies into the foreign market. It is important to mention the country's monetary policy has significant effects on the country's entire economic environment. The policy aims at controlling the flow of money from businesses to the banks and individuals, in turn, ensuring stability in employment, price and purchasing power of the customers.

References

Baron, D. (2013). Business and Its Environment. New Jersey: Pearson.

Czinkota, M., & Ronkainen, I. (2013). International Marketing. Massachusetts: Cengage Learning.

Ferrell, O., Niininen, O., Lukas, B., Schembri, S., & Pride, W. (2014). Marketing Principles PDF. South Melbourne : Cengage Learning Australia.

Fogel, G. (2010). BUSINESS ENVIRONMENT IN CHINA: ECONOMIC, POLITICAL, AND CULTURAL FACTORS . MBAA Proceedings , Pp. 12-18.

Guay, T. (2014). The Business Environment of Europe: Firms, Governments, and Institutions. Cambridge: Cambridge University Press.

Lee, C., Bang, H., Ha, J., Lee, J., & Kim, Y. (2012). An analysis of cultural impact on international business performance via foreign market entry mode: case of South Korean MNCs . Journal of Management and Marketing Research , Pp. 1-8.

Tian, X. (2016). Managing International Business in China. Cambridge: Cambridge University Press.

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