business strategy

Business Strategy

Student’s Name

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Global Business Strategy

Ted Baker is a company that had long dealt with the clothing business. It deals with fashionable apparel, which is distributed internationally, and its main base is the United Kingdom. The tastes and preferences in the United Kingdom where the business has its headquarters have changed substantially. More companies are using technology to market their products and even to reach out to potential customers. The strategy of the business is to expand its products by the customer’s preferences and tastes together with managing distribution through licensing, wholesale and retail (Collis et al., 2012, pp. 260). The business further focuses on managing its expansion into foreign markets.

The globalization strategy is far much different from a national business strategy. It covers wider geographical regions that have different tastes and preferences about the clothing they buy. The right business model for a business is in how its views it customers, and their preferences and tastes together with how the business will benefit in meeting the expectations of the customers through its products. The business in entering new markets should thus study the customers in the market and what they value about clothing and thus their tastes and preferences. The clothing trends in the United Kingdom may not be the same as those of Indonesia. To come up with the right business model, it is important for the company to conduct a market research first to ensure that important information is collected regarding the customers and thereby the business will determine their value in clothing in meeting the customer needs benefiting as a result.

The company in this regard should focus on value creation in its business strategy. The information from the market research will further helping delivering value to the customer and capturing value through making sales in the particular region, which is Indonesia. Porter’s five forces further help the business study it is business strategy while further looking on what strategy or the changes it can introduce to make it effective in a new market (Porter, 2006, pp. 1). For Ted Baker, the strategy has to change since Indonesia is a different country with different customer needs in clothing. A business considering supplier power, the threat of substitution and the new entry, competitive rivalry and buyer power will be able to learn the Indonesian market and its tastes and preferences. The theory further focuses on how business can deal with suppliers, buyers to determine the efficient distribution of their products and the prices. The business, in this case, needs to learn about the Indonesian tastes and preferences and further to look at the prices of related producing and trying to differentiate its product in the market even by the use of pricing.

The business has been successful in using licensing, wholesale and retail in various countries and as such, it needs to learn the distribution system to ensure that the products are taken through Indonesia reach the customer with few or no hitches (Hill & Jones, 2010). The business strategy should thus be geared towards meeting the tastes and preferences of the customer by studying the market, determining the value of the customer as regards clothing and meeting the expectation of customers in providing the value through the production of clothes that specifically target the customers in the Indonesia. Ted Baker should thus align its business strategy with the needs and expectation of the customers and the business environment in Indonesia, which is not the same as that of Britain. Therefore, to effective carry out its globalization strategy its needs to learn about the customers in Indonesia to ensure it can provide clothing products that are well received by the new market.

References

Collis, J., Holt, A., & Hussey, R. (2012). Business accounting: An introduction to financial and management accounting. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan.

Hill, C. W. L., & Jones, G. R. (2010). Strategic management theory: An integrated approach. Boston, MA: Houghton Mifflin.

Porter, M. E. (2006). Competitive strategy: Techniques for analyzing industries and competitors. Enskede: TPB.