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Produce a SWOT analysis for Harris Tweed taking account of market dynamics.

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Introduction

DAUBRY JULIEN 23rd April 2002 01008906 INTERNATIONAL MARKETING STRATEGY MK32004 CASE STUDY ASSESSMENT 1. You are required to produce a SWOT analysis for Harris Tweed taking account of market dynamics. SWOT Analysis is a very effective way of identifying strengths and weaknesses of a firm, and of examining the opportunities and threats it face. Carrying out an analysis using the SWOT framework will help Harris Tweed to focus its activities into areas where they are strong, and where the greatest opportunities lie. Harris Tweed has to exploit their key forces, resolve their problems, keep away from threats and benefit from opportunities... SWOT analysis will help the firm to find a relevant strategy and allows it to do the best choice to succeed in the market. Strengths: Tradition: Harris Tweed Industry has been introduced in Scotland in the 1840's and the production of the tweeds follows a well-established formula. Consequently it has a lot of experience, and that helps the brand to sell more products thanks to its image. Brand image: As the brand was introduced to the British Aristocracy, and used by the privileged for their pastime, the brand benefit from a good image of quality, and so that enable them to sell products at a high price. The wool quality and the machine technology are continuously monitored. Moreover, retail outlets consist of selective Department Stores and specialist Scottish outlets, and that strengthen the brand image because the product cannot be found in bargain or general shop. ...read more.

Middle

Trend: There is a decline in the Textile Industry, especially in Scotland. Purchase behaviour: Consumers have new purchase behaviour, which consist in looking in store rather than buying, and then waiting for discounts or sale reduction to buy a cloth. Lack of workers: There is a dwindling of the supply of skilled workers, which may be a problem to develop the firm and grow the tweed's production. 2. Based on your analysis and taking account of cultural and market entry methods, discuss the key factors affecting Harris Tweed's entry into the following international market: Germany. Before launching its new product into the German market, Harris Tweed has to spend time researching information about the market, and about German's purchase behaviour. Success in international marketing depends to a large extent upon satisfying the demands of the market and ultimately, on whether the product offered is suitable and acceptable for its purpose, regarding to additional elements such as packaging, warranties, after sales and branding that make up the total product offer for the purchaser. Success depends also on building market awareness and ensuring the availability of the product, which can be achieved by the effective use of the other marketing mix elements. Companies have to develop international markets in order to provide a cost effective way of generating new market opportunities and increased demand for a new product, especially when the brand is going to enter the decline step in the home market. ...read more.

Conclusion

The main focus has now switched to the ADDED VALUE such as marketing concepts and skills, flexibility, quick response and customer service. It is on these attributes that Harris Tweed has to work in order to increase the total of its sales. Because of its process of production, HT should act in indirect export, meaning that the goods are produced at home and sold through an intermediary. The main advantage it implies is the reduction of risks because of the intermediary's knowledge of German clothing market. Harris Tweed should choose specialised stores in order to compete with the other quality brand. The new Economy (ICT and E-Commerce) grew in 2000 by 11.1%, and the medium term prognosis for the sector for this year is for lower growth of 8.7%. Consequently, Harris Tweed should also use the direct export, thanks to Internet, as it appears more and more popular, and as seller retains complete control. In conclusion, with a right preparation and approach, Harris Tweed could be doing business in Germany and invest money in this market, as its total value is about �12 millions. It should take up the challenge that Harris Tweed is an old and experienced firm, and its entry in the US market has ever been successful. Germany's market is maintaining a healthy disposable income (highest in the EU) and the desire to buy quality product should help Harris Tweed to succeed in the market. ...read more.

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