Fleischer Couture

Bacheloi of Inteinational Naiketing

Bate of Beliveiy:
14.u6.2u12
BI Noiwegian Business School
&
uienoble uiauuate School of Business



This paper is done as a part of the undergraduate program at BI
Norwegian Business School. This does not entail that BI
Norwegian Business School has cleared the methods applied, the
results presented, or the conclusions drawn

2
Acknowleugement


This iepoit coulu not have been wiitten without coopeiation with Fleischei
Coutuie. We woulu like to thank the owneis Naja N. Fleichei anu Thea Sunu
Bell foi letting us wiite this bacheloi thesis of theii company. Theii help anu
infoimation have been impoitant to finish the iepoit anu we hope oui ieseaich
anu maiket analysis can help Fleischei Coutuie in the futuie.

Noieovei, we thank oui pioject supeivisois Pieiie Beimant anu Caiolina Weile
that have answeieu any questions anu guiueu us thioughout the last six months
so this iepoit woulu be as goou as possible. Clauuia Facklei-Bopf have
pioviueu with piactical infoimation anu we aie giateful foi hei suppoit anu
that she helpeu us with uistiibution of the suivey anu the piinting of the final
iesult. Finally, we will woulu thank eveiyone that have contiibuteu in the focus
gioup anu in oui suivey. You have been an impoitant pait of the pioject.

Aftei thiee yeais with stuuies we have leaineu much about uiffeient uisciplines
anu Inteinational Naiketing, thus we hope this papei will be infoimative foi
futuie stuuents anu companies that might inteinationalize anu expoit to Fiance
in the futuie.

Youis sinceiely,



Naiius Eiiksen Kaien Naiie T. Nyhiei




S
"#$%&'()$ *&++,-.

In }anuaiy 2u12 we staiteu woiking on this bacheloi thesis in coopeiation with
the Noiwegian company Fleischei Coutuie. Auuitionally this iepoit is wiitten
uuiing the past six months with methouology, an analysis of Fleischei Coutuie
anu the Fiench maiket in oiuei to answei oui ieseaich question;

!"#$% '( )*+'(,#+- ./0%0-+1( 2$-3+% 4/%+5%'$* '5 %#+ )-+5,# 6*4(78

Fiist, collecteu aiticles anu liteiatuie that take the maiketing uiscipline, socio-
cultuial tienus in Fiance anu the fashion-inuustiy into account - Thus this gave
us backgiounu infoimation to help us caiiy out oui ieseaich objectives anu
geneiate an hypothesis we coulu test with methouology. The hypothesis was
testeu with focus gioup inteiviews, a suivey anu an expeiiment. A fuithei
exploiation of the finuings inuicateu what a possible segment foi Fleischei
Coutuie value when they buy wintei clothing anu theii peiceptions.

Seconuly we continueu with an inteinal analysis of Fleischei Coutuie, theii
stiategic capabilities, business cultuie anu theii value chain activities in oiuei
to compiehenu theii stiengths anu weaknesses. In consequence, we finu
Fleischei Coutuie as a company with limiteu iesouices anu inteinational
maiketing knowleuge. In spite of this, Fleischei Coutuie has competitive
auvantages; a business cultuie with shaieu values, manageiial contiol ovei
theii value chain activities, anu nonetheless a stiong know-how within uesign
anu bianuing. In conclusion Fleischei Coutuie have inteinal stiength that can
geneiate futuie giowth at inteinational maikets.

Thiiu, the exteinal analysis foimeu a fuithei unueistanuing of the macio anu
micio foices in Fleischei Coutuie's enviionment anu the effect those foices have
on the fashion anu clothing inuustiy. Thus, the obseivation of all the ielevant
factois anu theii impact was enlighteneu thiough suggesteu fiamewoik anu
iecommenueu theoiy. Some notewoithy finuings aie the competitive iivaliy,
the socio-cultuial tienus in Fiance with incieaseu focus on enviionmental

4
issues, touiism in the alps, consumei tienus, puichasing habits anu finally that
the Fiench use outuoois activities as a way to safeguaiu theii health.


Finally, we uiu an analysis of Fleischei Coutuies stiength, weaknesses,
oppoitunities anu thieats with the SW0T fiamewoik baseu on finuings fiom the
methouology, inteinal anu exteinal analysis. In conclusion we have suggesteu
an entiy moue foi Fleischei Coutuie to the Fiench maiket that shoulu be expoit
thiough an agent anu will piesent iecommenueu maiketing mix, segmentation,
taiget anu positioning stiategies.


























S






















In order to be irreplaceable one must always
be different - Coco Chanel












6
BRIEF C0NTENTS
/0 12'-34&%'(325

1.1 About the pioject - Specific Aim 12
1.2 Nain objective 12
1.S Reseaich question 12
1.4 Conceptual Backgiounu 12
1.S Limitations 1S
60 73+8,2. 8-39(:$ ,24 ;,%<=-3&24..............1S
2.1 Company Piofile 1S
2.2 Backgiounu 1S
2.S 0iganizational Stiuctuie 16
2.4 Business Plan 16
2.S Nission 16
2.6 vision 16
2.7 Nain values 17
2.8 Sustainability Piogiam - KPI 17
2.9 The Piouucts 17
2.1u Bianu Elements 18
2.11 Financial situation 19
> ?('$-,'&-$ -$)($@.........................21
S.1 Fashion, clothing anu tienus 21
A0 B$'C343:3=.............................26
4.1 Reseaich uesign 26
4.1.2 Nain ieseaich question 26
4.1.S Bypothesis 26
4.1.4 Qualitative ieseaich 26
4.1.S Exploiative uesign 27
4.2 Selection of focus-gioup paiticipants 27
4.S Focus uioup Inteiview 28
4.S.1 Shopping habits - fiequency 28
4.S.2Retailing anu Bistiibution Channels 28
4.S.S Fashion tienus 29
4.S.4 Consumei piototypes 29
4.S.S Impoitant piouuct assets Su
4.S.6 Consumei Babits in Rhne Alps Su
4.S.7 Base layei clothing Su
4.S.8 Refeience gioups anu auveitisement Su
4.S.9 Segments in the ski-iesoits S1
4.4 Quantitative pait S1
4.4.1 Besciiptive uesign S1
4.4.2 Casual uesign S1

7
4.S ueneial finuings questionnaiie S2
4.S.1 Puichase behavioui S2
4.S.2 Piouuct featuies - wintei clothes SS
4.S.S Piice-elasticity SS
4.6 Causal uesign - Implementeu expeiiment S4
4.7 Test of hypothesis S4
4.8 Piimaiy uata limitations SS
4.9 Reliability anu valiuity SS
4.1u Nethouology Conclusion S6
D0 12'$-2,: E2,:.*(*........................S9
S.1 The ACE - mouel S9
S.1.1 Attituues towaius iisk S9
S.1.2 Naiket 0iientation S9
S.1.S Attituues towaius foieign cultuies 4u
S.2 Competence 4u
S.2.1 Capability 4u
S.2.2 Naiketing 4u
S.S Embouiment 41
S.S.1 Conclusive iemaiks 41
S.4 Stiategic capabilities 42
S.4.1 Resouices anu competences 42
S.4.2 Thiesholu capabilities 42
S.4.S Iuentification challenges 4S
S.4.4 0nique iesouices anu coie competences 4S
S.S Poiteis thiee geneiic stiategies 4S
S.6 vRI0- Analysis 44
S.6.1 valuable 44
S.6.2 Raie 44
S.6.S Inimitable 4S
S.6.4 0iganization 4S
S.6.S Conclusive Remaiks 4S
S.7 value Chain activities 46
S.7.1 Suppoit Activities 46
S.7.2 Piimaiy Activities 47
S.7.S Conclusive iemaiks 48
S.8 The BAKKA - Nouel 48
S.8.1 Expoit motive 48
S.8.2 Naiket choice: 49
S.8.S Naiket shaie: 49
S.8.4 0iganisation: 49
S.8.S Entiy stiategy: 49
S.8.6 BAKKA Naiketing mix: Su
S.8.7 Economic iesult: Su

8
S.8.8 Conclusive iemaiks Su
S.9 Boston Consulting uioup S1
S.9.1 Piouuct life cycle - Business giowth iate S1
S.9.2 Naiket shaie S2
S.9.S Conclusive iemaiks fiom the BCu matiix S2
F0 G$:$),2' *',<$C3:4$-*.....................S2
6.1 Conclusive iemaiks S4
H0 IC$ %&:'&-,: @$;........................SS
7.1 Stoiies SS
7.2 Rituals anu Routines SS
7.S Symbols SS
7.4 0iganizational Stiuctuie S6
7.S Contiol Systems S6
7. 6 Powei Stiuctuies S6
7.7 Conclusion iemaiks S6
J0 12'$-2,: E2,:.*(* K&++,-....................S6
L0 IC$ $#'$-2,: $2)(-32+$2'...................S9
9.1 Inuustiy ulobalization 6u
/M0 N"KI"? O B,%-3 $2)(-32+$2'..............62
1u.1 Political: 62
1u.2 Economic: 6S
1u.S Socio - cultuial: 64
1u.4 Technological: 6S
1u.S Enviionmental: 66
1u.6 Legal: 66
//0 B(%-3P$2)(-32+$2'......................67
11.1 Poiteis five foices 67
11.1.1 Powei of supplieis 67
11.1.2 Thieat of substitutes: 67
11.1.S Powei of buyeis: 68
11.1.4 Thieat of new entiance: 68
11.1.S Competitive iivaliy: 68
11.2 Stiategic gioup analysis - competitois 69
11.2.1 Intiouuction 69
11.2.2 Scope 69
11.2.S Noiina 69
11.2.4 Beigans 7u
11.2.S The Noith Face 7u
11.2.6 Peak Peifoimance 71
11.2.7 Kaii Tiaa 71
11.2.8 Wilue Roses 72
11.2.9 Sweet piotection 72

9
11.S Conclusive iemaiks 74
/60 Q(2,2%(,: G(*<*.........................7S
/>0 Q-$2%C %&:'&-,: 4(+$2*(32*..................76
1S.1 The Five-uimension mouel 77
1S.1.2 The Powei Bistance Inuex - PBI 77
1S.1.S Inuiviuualism - IBv 78
1S.1.4 Nasculinity Femininity - NSv 78
1S.1.S 0nceitainty avoiuance - 0AI 79
1S.1.6 Long- teim oiientation - LT0 79
1S.1.7 Conclusive iemaiks 79
/A0 "#'$-2,: ,2,:.*(* *&++,-.................8u
/D0K'-,'$=................................82
1S.1 SW0T 82
1S.1.1 Stiengths 82
1S.1.2 Weaknesses 8S
1S.1.S 0ppoitunities 8S
1S.1.4 Thieats 84
1S.1.7 Conclusive iemaiks 8S
/F0 K'-,'$=(% N-3;:$+ 4$9(2('(32 .................8S
16.1 Stiategic maiketing goals 8S
16.2 Shoit - teim goals 86
16.S Long - teim goals in expansion 86
16.4 Ciitical Success Factois 87
/H0 14$2'(9.(2= *'-,'$=(% ;&*(2$** &2('* .............87
17.1 Naiket baseu ciiteiia 87
17.2 Piouuct-baseu ciiteiia 88
17.S Capabilities-baseu ciiteiia 88
17.4 uame theoiy 88
17.S Responuing to competitive thieat 89
17.6 Bowman`s stiategic clock 9u
17.7 Conclusive iemaiks 9u
/J0 R(2$ *'-,'$=(% @(243@*....................91
/L0 B34$ 39 "2'-..........................92
19.1 Expoit thiough impoitei 92
19.2 Expoit thiough agent 9S
19.S Expoit without a iepiesentative 9S
19.4 Entiy stiategy 94
6M0 K$=+$2','(32S I,-=$'(2= ,24 N3*('(32(2=........9S
2u.1 Segmentation 9S
2u.1.2 ueogiaphical segmentation 96
2u.1.S Bemogiaphic segmentation 96

1u
2u.1.4 Psychogiaphic segmentation 97
2u.1.S Behavioui segmentation 97
2u.1.6 Customei neeus 97
2u.2 Taigeting 98
2u.S Positioning 99
6/0 B,-<$'(2= B(#..........................99
21.1 Piice 99
21.1.1 Foimation of piice 1uu
21.2 Piouuct 1u1
21.2.1 Coie Piouuct 1u2
21.2.2 Physical piouuct 1u2
21.2.S Extenueu piouuct 1u2
21.2.4 Symbolic piouuct 1u2
21.2.S Logistics 1u2
21.2.6 Cultuial conuitions in Fiance 1uS
21.2.7 Technical iestiictions 1uS
21.2.8 Piouuct lifecycle 1uS
21.2.9 Piouuct policy 1uS
21.2.1u Ethnocentiic piouuct-expansion 1u4
21.2.11 Conclusive iemaiks 1u4
21.S PLACE 1uS
21.4 PR0N0TI0N 1uS
21.4.1 Conclusive iemaiks 1u7
21.S Naiket Communication goals anu choice of channels in
Fiance foi FC maiketing stiategy 1u8
660 732%:&*(32 39 'C$ 8-3T$%'...................1u9
6>0 U(;:(3=-,8C..........................111
2S.1 Books: 111
2S.2 Aiticles: 112
2S.S Bome pages competitois 11S
2S.4 0nline souices 11S
E88$24(#..............................11S
/0 N-34&%' 83-'93:(3........................11S
6 K&++,-. 93%&* =-3&8.....................118
>0K&++,-. (+83-',2' 9(24(2=*
V&$*'(322,(-$.............................122
4. 1 ACE - Nouel 129
4.2 Kotlei's concept of the piouuct 129
4.S Stiategic capabilities anu Coie competence 1Su
4.4 Poitei's thiee geneiic stiategies 1Su
4.S BAKKA - Nouel 1S1
4.6 BCu - Natiix 1S2

11
4.7 Piouuct life cycle 1S2
4.8 Stakeholuei mapping 1SS
4.9 Cultuial web 1S4
S.1 PESTEL - Analysis 1SS
S.2 Poitei's five foices 1S6
6.1 SW0T - Natiix 1S7
7. 1 Bowmans Stiategic Clock: 1S7
7.2 Nine stiategic winuows 1S8
7.S Expoit thiough Agent 1S8
7.4 Naslow's hieiaichy of neeus: 1S9
7.S Nap of uiffeientiation possibility 1S9
7.6 Piicing in uiffeient stiategic situations 14u






















12
/0 12'-34&%'(32


/0/ E;3&' 'C$ 8-3T$%' O K8$%(9(% E(+

This pioject is a pait of oui final thesis pioject foi BI Noiwegian Business
School in Noiway uuiing oui last semestei at the Fianco-Noiwegian
Piogiam with uienoble Ecole Be Nanagement. In coopeiation with the
Noiwegian company Fleishei Coutuie we have wiitten this iepoit they
can use as a stiategy foi possible expoit of theii piouucts to the Fiench
maiket. Noieovei, it will hopefully help them to expanu theii business anu
leau foiwaius as one success stoiy foi Noiwegian uesign anu clothing
inuustiy.
/06 B,(2 3;T$%'()$
The main objective of this iepoit was to ueteimine if theie was any
potential in Fiance foi Fleichei Coutuie anu aftei using methouology,
liteiatuie ieviews, inteinal, exteinal anu stiategic analysis give them oui
iecommenuation foi expoiting theii piouucts at the Fiench maiket.
/06 G$*$,-%C V&$*'(32

"What is Fleischei Coutuie maiket potential in the Fiench Alps."

/0A 732%$8'&,: U,%<=-3&24
The conceptual backgiounu is uiviueu in two main paits. Fiist we will
piesent oui methouology that incluues a qualitative pait with liteiatuie
ieview of consumei behavioui, the maiket tienus anu moieovei an
exploiative uesign with focus gioup inteiviews. Fiom that infoimation we
cieateu a suivey in a iepiesentative gioup. In the seconu pait we will
uiscuss an inteinal analysis anu the exteinal enviionment baseu upon
finuings in publisheu maiket ieseaich anu fiom the methouology.
Noieovei, all the infoimation is enlighteneu in a SW0T fiamewoik useu as
a basis foi a maiketing mix anu the stiategy foi entiy moue befoie we will

1S
piesent oui conclusion anu iecommenuations. The company will be
uesciibeu as FC insteau of Fleischei Coutuie thiough the iemaining papei
uue to piactical ieasons.

/0D ?(+(','(32*
This pioject shoulu be ieau with the following limitations in min:
We focuseu on FC }acket collection anu the othei piouucts in the
poitfolio uiu not have the same impact on this iepoit anu oui stiategy
iecommenuations.

0ui ieseaich is conuucteu in the iegion of Rhne -Alps anu the
suiiounuing aiea of uienoble with little oi no focus on the iest of the
Regions in Fiance. This is baseu upon time anu financial limitations, but
the uecision is howevei baseu on the by iesults fiom oui finuings we will
uiscuss latei in the iepoit. In conclusion this iepoit shoulu not be useu as
a backgiounu foi stiategy in Fiance in geneial.
In the methouology we sent oui suivey thiough the uEN uatabase to
women between 18 -Su yeais because this iepoit is wiitten unuei a tight
scheuule anu we wanteu as much answeis as possible within toui taiget
gioup. Thus; the answeis aie fiom both national anu inteinational
stuuents.

We wanteu to ieach at least 1uu iesponuents in oiuei to collect
infoimation. Bowevei, we only ieceiveu S4 answeis anu this might ieuuce
the ieliability anu valiuity of oui methouology.







14

7WBNERX NGWQ1?" ERY
UE7Z[GW\RY

1S

60 73+8,2. 8-39(:$ ,24 ;,%<=-3&24

60/ 73+8,2. N-39(:$
Fleischei Coutuie is an elegant bianu fiom Noiway known foi theii
collection that is uesigneu foi outuooi anu contempoiaiy women. The
featuies of Fleischei Coutuie (heieunuei calleu FC) that uiffeientiate them
fiom othei bianus is that the collections aie maue of innovative uesign
anu a gieat combination of functional textuies with colouis foi women
that want to stanu out fiom the ciowu. The two giils behinu FC aie
uiessing up women in theii uieaming uesign in a vaiiety of colouis that
aie biight hues of coial, blue, tuiquoise anu puiple. Touay the piouuct
line is solu fiom 0slo in south to Svalbaiu in noith. Theii goal was mainly
to uesign a wintei coat that women can weai uuiing the Noiwegian wintei
anu the colu weathei - anu they aim to be the fiist choice foi the tienuy
customei. FC is inspiieu by giils who uaie to put own iueas into action
anu with a buining uesiie foi what they aie uoing. 9:*+- 3;'55+- < =+-+(
=->22+-? @*'5+ A;$2(%$= BCDC)

606 U,%<=-3&24
Ihe backgiounu foi cieating FC is the impoitance of the iight clothes
when out in the natuie. (Fleischei Coutuie Business Plan, 2u1u) The
company was boin in 2uu6 when they launcheu theii fiist jacket collection.
Two yeais aftei the setup the company hau gieat success anu launcheu
soft wool anu silk unueiweai, socks anu hats inspiieu by the colu climate
in Noiway. The uesignei anu founuei of FC; Naja N. Fleichei is veiy active
in the natuie, hence she have a goou unueistanuing foi what women
clothing neeu foi these activities. Thea Sunu Bell has a backgiounu within
the maiketing aspect of bianuing anu contiibuteu to the business concept,
the name of the bianu, Image anu as a consultant in uesign. FC
collaboiateu with one of the laigest manufactuies of outuooi clothing in
Russia calleu Reu Fox. The team with expeiienceu mountaineeis anu

16
engineeis fiom Reu Fox helpeu FC with uevelopment anu the piouuction
of the FC piototypes anu seiveu as a supeivisoi foi FC with theii bioau
knowleuge anu expeiience in oiuei to piouuce the best possible piouuct
line.

60> W-=,2(],'(32 K'-&%'&-$
The owneis manage the main activities in the FC heau office in 0slo wheie
the uesign, sale anu maiketing activities take place. (Fleischei Coutuie,
Business plan, 2u1u) The opeiation also incluues inbounu logistic,
outbounu logistics anu tianspoitation to the uistiibution. The stoiage is
locateu close to the heau-office. FC uistiibutes anu sells theii clothes
thiough 47 ietaileis fiom south to the noith in Noiway they have a close
ielationship with. The piouuction is outsouiceu to "0NIvERN" a
Noiwegian piouuction company with factoiies in both China anu Pakistan.
The factoiies have been gieat contiibutois to piouuce aftei FC wishes
with the quality clothes FC iepiesents.

60A U&*(2$** N:,2
"Fleischei coutuie aim to cieate functional outuooi clothing of high quality
anu enviionmentally fiienuly mateiials, specially piouuceu anu uesigneu
by women foi women"

60D B(**(32
"Be a specialist within outuooi clothing foi women, innovative anu with
focus on quality. FC commit to enviionmental piotection anu aim to be
moie enviionmentally fiienuly within theii piouuction ovei time."

60F ^(*(32
"FC wish to cieate a shaieu Image of theii ambitions with the customeis
anu shaieholueis



17
60H B,(2 ^,:&$*
FC has thiee values anu main pillais behinu theii coipoiate cultuie that
ought to guiue futuie stiategies.

E0$*'%F
The clothes shall woik in all kinus of weathei because this is essential foi
goou expeiience in the mountains anu pioviue the customei with a total
anu outstanuing quality expeiience.
<55/;$%';+
FC shall have a combination of tiauitional outuooi clothing anu fashion
with an innovative look.
G#+ H$%0-+
The Natuie is the motivational foice behinu the FC stiategy. The natuie
have so many oppoitunities, pioviues us with fieeuom anu challenges, anu
it shoulu be tieateu with iespect in an enviionmentally mannei.

60J K&*',(2,;(:('. N-3=-,+ O Z$. N$-93-+,2%$ 124(%,'3-*
@5;'-/52+5%$* I-'+5=*F I$J-',( - uoal:
Cieate piouucts with enviionmentally fiienuly mateiials anu piouuction
methous.
KII',+ L$(%+ - uoal:
Reuuce the waste of biochuies anu office waste. 0se enviionmentally
fiienuly papeis. Neet conuitions anu goveinmental iequiiements when
choosing iaw mateiials, chemicals anu uyes that is enviionmentally
fiienuly. This iequiies uocumentation of waste ieuuction anu ieuuceu
emissions.

60L IC$ N-34&%'*
The piouuct poitfolio incluue jackets, base layei clothing anu hats foi
outuoois activities. (Fleischei Coutuie, business plan 2u1u) The clothes
aie exclusively piouuceu in high quality mateiials. The jacket collection is
theii coie piouuct nameu aftei famous mountain peaks in Noiway anu
piouuceu in limiteu euitions with inuiviuual numbeis. FC will in the futuie

18
piouuce theii piouucts with enviionmentally fiienuly mateiials. Noieovei,
the jackets have a peisonal message fiom the uesigneis anu a uesciiption
of the Peak that inspiieu the euition. (M-';#0(+II+3%+5? N'O0-= P>55'5O+5Q
The poitfolio is illustiateu in appenuix 1.

60/M U-,24 ":$+$2'*
The composition of the logo, the giaphic element anu ielation in between
al its components iuentify FC Image.
(http:www.managementstuuyguiue.com)
The name shoulu immeuiate be associations with mountains anu natuie in
anu the elements shoulu pioviue an impiession of exclusivity anu quality.
Fleischei is simply chosen because this is the name of the uesignei.
Coutuie is a woiu ueiiveu fiom the expiession "Baute Coutuie" which
means high seam. Baute Coutuie is maue in small euitions anu stanus foi
exclusive clothing. Bence, Coutuie is an appiopiiate name that miiioi the
quality of each collection solu in a limiteu euition eveiy season.
(http:www.meiiiam-webstei.com)

A visual symbol is easiei to iemembei foi the consumei than woius,
enlightens iecognition anu cieates attention. The logo of the company has
ioot in theii coie stiategy anu contiibutes to the associations consumeis
shoulu have towaius the bianu. Noieovei it is a veision of the symbols
one can see on uiffeient maps that stanus foi viewpoints on top of
mountains anu hills. The clothes aie as mentioneu nameu aftei the height
of the peaks in Noiway ovei 2uuu meteis anu the logo is in haimony with
theii piouucts. The logo is feminine anu it can be mistaken foi a stai, a
snowflake oi a flowei anu symbolize that the piouucts is foi giils anu
women. The name is wiitten with a cleai font anu given the feminine
touch it shoulu be associateu with iock oi snow coveieu peaks.





19


60// Q(2,2%(,: *('&,'(32
FC has expeiienceu a significant inciease uue to giowth in piouuction anu
ietaileis since the setup. In the Fiscal yeai of 2u1u FC uoubleu theii
tuinovei fiom 2uu6 anu solu foi 2.6 million N0K _` >6LS//6a anu piofit
of N0K 1 million _` /6FSDJ6a0
















2u

?('$-,'&-$ -$)($@


21

>0 ?('$-,'&-$ -$)($@

>0/ Q,*C(32 ,24 '-$24*

The fashion inuustiy typically embouies any piouuct, seivice oi maiket
wheie theie is an element of style that is likely to be shoit liveu, if not
constantly changing with tienus (Chiistophei, Lawson, Peck, 2uu4).
The emeigence of new maikets anu taste of luxuiy anu high-fashion goous
mean that Euiopean anu Ameiican puiveyois of such piouucts have begun
to finu many of theii most valuable consumeis fai fiom home (}anson anu
Powei, 2u1u). Thus, with the globalization much of the clothing anu
uesignei goous manufactuie has been outsouiceu to lowei-cost iegions.
(}anson anu Powei, 2u1u) With this on-going tienu, one can make
assumption of those small fashion uesigneis only woiking uomestic will
meet a giowing competition fiom foieign uesigneis anu bianus. Noieovei,
it is of high impoitance to coiiesponuingly expanu to gain a biggei maiket
anu bettei piofits.

"Fashion is a conception of what is cuiiently appiopiiate." (Baniels, 2uu9)
0ne uefinition of fashion touay is that it is a conception of what the
customei wants. Conveisely, geneial fashion change slowly theiefoie
sustainability is impoitant foi a company like FC that piouuce geneial
fashion. The fact that they shoulu follow the impoitance of spoitsweai
uemanu one see touay is as a cause fiom the subuiban anu casual living
effect. This aspect of maiket tienus is impoitant foi FC since timing a
fashion anu piouucts is a mattei of what is going on in the sociocultuial
fielu. By intelligently look at the iecoiu foi geneial fashion one can moie
ceitainly get to know seasonal an accuiate timing foi piouucts.



22
0scai Wilue saiu "A Womans style change, but theii uesign iemain the
same". Something that FC has implementeu in theii piouuct philosophy as
theii piouuct have the same uesign anu featuies only with minoi changes
oi new auuitions to the piouuct line eveiy new season. (Baniels, 2uu9)
Likewise, one can say that people touay consiuei that tienus aie moie
impoitant than piice; this has maue piice sensitivity moie viitually
uisappeaiing. Women buy moie fashion to look pietty to be one of
eveiyone else anu belong to a ceitain social class. Theiefoie it is uiffeient
foi FC to communicate with moie stylish piouucts than the noimal
spoitsweai.
We have uiscusseu how FC focus on the geneial fashion anu that they aie
moving towaius a ceitain maiket. The niche maiket is a iesouice-baseu
view, anu this is touay a moie uominant view when one cieates a stiategy.
9G/I%+5? A$22+-;/** BCCRQ Existing uefinitions of niche maiketing have
not been completely agieeu upon. Bowevei, theie aie some chaiacteiistics
they have in common; It is about thinking anu acting small, one offei a
small volume focusing on a few customeis anu avoiu the maikets with the
laigest amount of competitois. FC piouuces a limiteu numbeis of theii
jackets, anu offeis a volume to customeis that value iaiity anu uesign
when they buy a new gaiment. They also sell theii clothing thiough few
ietaileis that specialize on outuooi piouucts anu not to laigei chain stoies.
Niche maiketing is about segmenting cieatively anu focus on customei
neeus anu uemanus anu they tieasuie the ieputation of the bianuing anu
woiu-of-mouth maiketing. (Toften, Bammeiwoll 2uu9) Noieovei they
chaige a piemium piice anuoi offei supeiioi quality to the customei. FC
uesign clothes to the active uiban woman that value quality jackets, they
like to stanu out fiom the ciowu, anu uo not minu to be uiffeient, anu they
aie fashionable. FC focuses on the peiception of the customei piototypes
in the segment anu iely on that they tell otheis if they aie satisfieu. In
conclusion FC is closely ielateu to the chaiacteiistics anu apply piouuct
uiffeientiation, customei focus anu ielationship maiketing. 9Toften,
Bammeivoll 2uu9)

2S
Consumeis have uiffeient levels of piouuct knowleuge (Petei, 0lson 2uu8).
They use this to inteipiet new infoimation anu make puichase choices. It's
impoitant foi FC in a highly competitive maiket to ieach the consumei by
uiffeientiation if they entei Fiance. Women buy cloths to look glamoious,
young anu attiactive (Baniels, 2uu9). Accoiuing to this theie shoulu be a
maiket foi FC piouucts as they have featuies the consumeis woulu fancy
in the maiket touay. When consiueiing going in to the Fiench maiket we
have to analyse the tienus anu how fast they aie moving foiwaiu. FC has
been seeking to builu a bianu that signal to customeis why they shoulu
buy the piouuct. Theii bianu claiifies which functions that the customei
can expect as long as the piouucts live up to the expectations
(www.I*+',#+-,/0%0-+S5/). An impoitant subject iegaiuing a clothing
bianus maiketing entiance aie how the consumei peicept new bianus
anu values them.

In latei times the concept of J-$5= */;+ gets moie anu moie commonly
useu (Batia, Ahuvia, Bagozzi, 2u12). What makes the costumeis love a
bianu can be seen as the same factois that biought theii attention towaius
it in the fiist place. Factois of the bianu as it being the best available (e.g.,
best in eveiy way, best value foi money, best on some impoitant attiibute),
anu simply knowing that a bettei bianu existeu is commonly offeieu as a
ieason foi not loving a paiticulai bianu. The only complain we often see
foi customeis is the high piice of some highei-enu bianus. But this uon't
make customeis feel uissatisfieu, they believe the piice is justifieu (Batia,
Ahuvia, Bagozzi, 2u12).Foi a bianu to be loveu it also has to iesponu to
something ueepei, such as self-actualization, close inteipeisonal
ielationships, existential meaning, oi ieligious oi cultuial iuentities
(Richins 1994). It will be impoitant foi FC to iesponu to these factois
when enteiing Fiance, anu theiefoie impoitant foi us to finu out if the
piouucts have the potential in the maiket.

Costumeis invest high levels of time, eneigy, anu money into loveu bianus
(Batia, Ahuvia, Bagozzi, 2u12). We know that they uon't easily shift to

24
othei bianus so the piouucts have to peifectly iesponu to the uemanu.
People stiongly iuentify themselves with things they love anu it makes
them feel happiness anu joy anu this iesponus to the clothes they weai.
Because talking about a bianu with othei people is an impoitant pait of
iuentity constiuction (Bolt 1997), high levels of W0N (Woiu of Nouth)
shoulu also be associateu with love of bianus (Batia, Ahuvia, Bagozzi
2u12). W0N is in geneial impoitant foi uesigneis woiking with clothes. A
positive W0N will help the piouuct enoimously to gain moie maiket
shaies anu highei sales, as well as geneial acceptance between customeis.

The (/,'$* +5;'-/52+5% incluues all social inteiactions between anu among
people (Petei, 0lson 2uu8). This iefeis stiongly to FC as the social
enviionment is impoitant foi people when buying clothes. The macio
social enviionment iefeis to the inuiiect anu vicaiious social inteiactions
among veiy laige gioups of people (Petei, 0lson 2uu8). Cultuie,
subcultuie, anu social class have bioau anu poweiful influences on the
values, beliefs, attituues, emotions, anu behavioui of inuiviuual consumeis
in those gioups. It is saiu that consumeis in uiffeient subcultuies anu
social classes iesponu uiffeiently to maiketing stiategies anu towaius
uiffeient piouucts. What gioup FC shoulu focus on iegaiuing social class is
impoitant to measuie when enteiing a new maiket. If you uon't taiget the
maiket with the biggest potential foi youi piouuct line, it's a big chance
you can fail uue to the maiket tienus. (Petei, 0lson, 2uu8)

Bianu equity can be uestioyeu if maiketeis uo not tie theii bianu to the
puipose of the piouuct. FCs piouucts have seveial featuies - so how is it
uiffeient foi them to communicate with stylish piouucts along with the
function featuies. A cleai puipose bianu has two siues - one siue guiue
the customei to the iight piouuct anu seconuly the othei siue is function
to guiue the companys piouuct uesigneis, maiketeis anu auveitisement
when ueveloping anu impiove theii piouucts. The piice piemium that the
bianu commanus is the wage customeis will be willing to pay foi the
bianu foi pioviuing this guiuance. 9.*$F%/5 TS .#-'(%+5(+5 2I*SQ

2S

B"IbWYW?W[X


26
A0 B$'C343:3=.

A0/ G$*$,-%C 4$*(=2
A ieseaich uesign is a fiamewoik oi bluepiint foi conuucting a maiketing
ieseaich pioject (Nalhotia & Biiks 2uuS). It is impoitant to choose an
appiopiiate ieseaich uesign as it ensuies a moie effectively anu efficient
maiketing ieseaich pioject.

A0/06 B,(2 -$*$,-%C V&$*'(32
The main ieseaich questions foi this pioject is mainly what the customei
value anu if the taigeteu gioup woulu puichase any piouuct fiom FC. In
oiuei to answei oui ieseaich question anu peifoim a stiong maiket
analysis we have appioacheu the methouology with exploiatoiy uesign,
uesciiptive uesign anu a casual uesign to get a moie tiuthful answei.
(Nalhotia & Biiks 2uuS).

A0/0> b.83'C$*(*
<% '( '24/-%$5% I/- L/2+5 $5= %#+'- (+*IU+(%++2 %#$% ,*/%#+( #$;+ %-+5=F
=+('O5 L'%# I05,%'/5$* =+%$'*( $5= %#'( ,-+$%+ $ 2$-3+% 4/%+5%'$* I/-
)*+'(,#+- ./0%0-+ '5 )-$5,+S
A0/0A c&,:(','()$ 8,-'
In the qualitative pait of this pioject we useu the tools fiom an exploiatoiy
uesign. This is ielevant as theie is not enough theoiy available foi us to
guiue oui pieuictions anu we can obtain ielevant infoimation about this
theme we wish to know moie about. (Nalhotia & Biiks 2uuS).








27

A0/0D "#8:3-,'()$ 4$*(=2
Caluei once saiu (1977): "A shaieu peispective cannot be expecteu to
emeige if the people aie not similai." With oui focus gioup we think we
can gain a goou uiscussion anu as well ieach a similai peispective at the
enu. We piepaieu a focus gioup uiscussion with 8 peisons fiom a
iepiesentative population anu hau an inteiview that lasteu aiounu 1,S
houis. This helpeu us to collect infoimation of the consumei attituue,
maiket tienus as well as it cieateu a goou backgiounu foi the quantitative
ieseaich (uiipsiuu, 0lsson, Silkoset, 2u1u).

A06 G$%-&('+$2' ,24 *$:$%'(2= 93%&*P=-3&8 8,-'(%(8,2'*
The chaiacteiistics of a focus gioup size aie typically between 8 to 12 pie-
scieeneu homogenous iesponuents. (Nalhotia, 2u12)We hau a focus
gioup with 6 paiticipants which means less physical uistance anu it was
easiei to get eye- contact. In auuition, we believeu that this is a goou
numbei as the gioup uynamic is pieseiveu. We scheuuleu the focus gioup
inteiview to last foi aiounu 1,S houis to establish iappoit with the
paiticipants anu exploie beliefs, attituues anu insights towaius oui topic.
Noieovei we iecoiueu the inteiview as a pieseivation of the comments
foi latei analysis. (Nalhotia, 2u12)

The ieciuitment of paiticipants was in teims of uemogiaphics anu
socioeconomic chaiacteiistics. This helpeu us to avoiu inteiactions anu
conflicts on uiffeient siue issues. (Nalhotia, 2u12)) We assumeu that the
iesponuents hau similai backgiounu anu attituues towaius shopping,
clothes anu tienus in the Fiench maiket. The iesponuents weie both
Fiench anu Inteinational stuuents; anu the choice of foieigneis can be
justifieu with what we know of touiism in this aie anu the fact that
inteinational stuuents that live in this aiea. Fiom oui peiception the
paiticipants was a combination of heavy useis as well as useis that uo not
have as much inteiest in this type of piouuct. (Nalhotia, 2u12)


28

A0> Q3%&* [-3&8 12'$-)($@
We thankeu the paiticipants foi coming anu explaineu why they weie
ieciuiteu anu explaineu biiefly the subject we woulu be talking about.
Noieovei we infoimeu them about the natuie of the focus gioup, that we
wanteu to know theii opinions anu that they woulu be iecoiueu. The
most impoitant finuing is piesenteu in this iepoit anu the questions fiom
the inteiview can be ieau in Appenuix 2.u.

A0>0/ KC388(2= C,;('* O 9-$V&$2%.
The iesponuents puichases clothes often anu the majoiity bought
something eveiy week. The Fiench iesponuents saiu that they usually buy
clothes once a month. Biesses anu smait casual weai aie by theii
uefinition; shiits, sweateis, anu t-shiits anu the type of clothing they
bought most often. It was an oveiall agieement that wintei coats, clothes
foi outuoois anu wintei activities was bought once a yeai - if theie was a
stiong neeu oi motivational foice behinu the puichase. They assumeu that
they buy clothes moie often uuiing the summei because clothes tenu to be
cheapei, it uoes not have the best quality anu because the tienus change
iapiuly - one might not use the same clothes next yeai. In the wintei
seasons; they aie moie winteitime selective hanu have uiffeient ciiteiia.
When they puichase wintei clothes, they expect it to last ovei seveial
yeais; thus, they weie willing to pay moie a wintei jacket anu they also
anticipate a goou wintei coat to be moie expensive.

A0>06G$',(:(2= ,24 Y(*'-(;&'(32 7C,22$:*
Thiee of the iesponuents puichase clothes mostly oi often fiom Inteinet
ietaileis. 0n the othei hanu, the othei iesponuents piefeiieu uepaitment
stoies anu shopping malls. Neveitheless, what was iemaikable was the
oveiall agieement among the iesponuents that they piefei specializeu
stoies when they buy wintei appaiel anu spoit clothes. The puie bianu
stoies aie peiceiveu as ietaileis that offei piouucts of highei quality, anu
this was veiy impoitant. Auuitionally, when they like a ceitain bianu they

29
usually show loyalty to that bianu anu tiough piouuct auoption they
continue to buy fiom the same company.

A0>0> Q,*C(32 '-$24*
The women in Fiance often weai the same colouis anu they aie willing to
pay moie foi a wintei coat. In Rhne Alps; they weai moie ski-jackets anu
quality in combination with function is of gieat impoitance. Noieovei, the
jacket shoulu be in accoiu with the cuiient tienus anu the uesign must
incluue uetails fiom what is cuiiently appiopiiate. This is moie impoitant
foi a company if they want to attiact the youngei customeis. The
obseivation of women in this iegion was that they value the piactical
aspect of the piouucts. Finally; they think the Fiench has piice as main
ciiteiia befoie puichases, anu quality anu style is in seconu hanu. Bianu is
also veiy impoitant, especially when one puichase clothes uuiing the
wintei than at summei time.

A0>0A 732*&+$- 8-3'3'.8$*
We askeu the paiticipant to uistinguish between uiffeient piototype
consumeis they think exists anu what they think each of the piototype
value when they puichase new piouucts. The spoity consumei is one who
woulu be willing to pay moie foi quality- if the piouuct is ielateu to
outuooi activities. The seconu piototype; the casual one can spenu moie
money on clothing if they like the ceitain style oi if the bianu is appealing.
The elite with veiy high income can buy expensive clothes because they
have gieat quality - it uoes not necessaiily neeu significant bianu exposuie.
Stuuents aie the consumeis that aie veiy piice sensitive anu theii Income
have the gieatest influence on how much they pay foi a piouuct. Noieovei,
it also uepenus on theii piefeiences anu if they piefei the aspect of
fashion befoie piice anu quality.





Su
A0>0D (+83-',2' 8-34&%' ,**$'*
The piouuct quality, comfoit anu functions aie most essential; the tienuy
aspect is not a necessity- it is moie about the comfoit anu functions. In
contiast, the iesponuents also think fashion anu appiopiiate uetails
somehow shoulu be implementeu in the uesign as this aspect makes them
feel gieat, spoity anu tienuy.

A0>0F 732*&+$- b,;('* (2 GCd2$ E:8*
The touiism in the Alps attiacts many people fiom the noith anu the south
to the iegion of Rhne Alps. Auuitionally; when people aie on vacation
they tenu to weai moie casual as the habitants aiounu the alps anu
function is veiy impoitant. Noieovei, it is inteiesting that the Fiench
iesponuents saiu that Fiench touiists buy theii clothes befoie theii
holiuay; they aie awaie of that the piices aie highei in the specialiseu
stoies. Neveitheless, the iational behinu why some choose to buy fiom the
specializeu stoies in the specialiseu stoies in the Alps is that the
consumeis know the stoies have the latest wintei fashion anu follow the
tienus at the maiket. Finally; the impoitance foi the Fiench to look
fashionable is likewise when the tiavel anu uuiing holiuays.

A0>0H U,*$ :,.$- %:3'C(2=
Function is moie impoitant than piice foi supei unueiweai anu hats. Thus,
one woulu be willing to pay moie foi supei unueiweai as this usually only
pioviue moie function than fashion - it is not foi othei people to see as
one weai it unuei eveiything else.

A0>0J G$9$-$2%$ =-3&8* ,24 ,4)$-'(*$+$2'
Theie was an oveiall agieement that fiienus, family anu social gioups
influence puichases. Fiienus, opinion leaueis such as celebiities anu
magazines weie the main foice behinu a puichase. This is because on feel
iuentifieu by the iefeience gioup anu subcultuies is a stimulus of a
peisons iuentity anu puichase uecisions. Finally; the woiu of mouth is

S1
moie impoitant than maiketing channels such as auveitisement anu
commeicial.

A0>0L K$=+$2'* (2 'C$ *<(P-$*3-'*
In the Alps the iesponuents saiu that touiists weie mostly women
between the age of Su anu 6u yeais, young stuuents fiom both genueis
anu othei householus that can affoiu a vacation on ski. In auuition it was
saiu that theie aie not as much oluei men on skiing vacation.

A0A c&,2'(','()$ -$*$,-%C

In the seconu anu quantitative pait we have a bettei compiehension of
oui ieseaich objectives anu will exploie this moie in uepth with a suivey.
The puipose was to collect moie uata of consumei habits anu the
inteiuepenuence between behavioui, peiception, knowleuge, age anu
inteiest. (uiipsiuu, 0lsson, Silkoset, 2u1u).

A0A0/ Y$*%-(8'()$ 4$*(=2
The answeis fiom the focus gioups weie opeiationalizeu into questions
we implementeu in a suivey. The most essential is to cieate measuiable
questions anu test oui hypothesis. The questionnaiie was cieateu with the
softwaie tool E0$*%-',s; answeis anu the collection fiom the iesponuents
weie implementeu in uiffeient uiagiams. (uiipsiuu, 0lsson, Silkoset,
2u1u).

A0A06 7,*&,: 4$*(=2
Fleischei Coutuie has a well-uefineu segment anu we saw an oppoitunity
to cieate an expeiiment. An expeiiment incieases the likelihoou of causal
explanations fiom iesponuents. (uiipsiuu, 0lsson, Silkoset, 2u1u). The
expeiiment contains a ianuomizeu contiol gioup anu manipulation of
stimuli. Thus, we exposeu a pictuie fiom FC jacket collection in the suivey.
All the iesponuents saw a pictuie of the similai jacket, but with uiffeient

S2
explanations anu weie askeu to pioviue theii opinion with iegaiu to piice,
likelihoou of puichase anu geneial peiception of the piouuct.

A0D [$2$-,: 9(24(2=* V&$*'(322,(-$

All of the iesponuents weie women anu the mean age was 2S yeais; 26%
weie stuuents without a job, 17% stuuents with a pait-time job anu 21%
weie full time employeu. The nationality of the iesponuents was spieau
among seveial uiffeient nationalities, as some weie full-time stuuents in
uienoble. We staiteu oui questionnaiie with questions iegaiuing geneial
shopping habits anu attituues. Eventually we continueu towaius questions
iegaiuing oui specific piouuct. A summaiy of the most impoitant finuings
in the suivey incluuing answeis can be seen in Appenuix S.u.

A0D0/ N&-%C,*$ ;$C,)(3&-
The intiouucing questions assesseu consumeis puichasing behaviouis
anu whethei they piefei to buy goous anu clothing alone oi with otheis.
The answei inuicates if someone has influence on theii uecisions; S8%
piefei oi go shopping alone, SS% with fiienus anu 17% with theii paients.
The majoiity of the iesponuents agieeu that they seek most of the
infoimation in auvance befoie they puichase any clothes. They seek this
infoimation fiom fiienus, families, magazines anu the newspapei. The
iesponuents value otheis opinions anu follow cuiiently tienus fiom theii
iefeience gioups.

Noieovei, finuings in the focus gioup inteiview inuicateu that the ceitain
style of clothes influence the consumei's feelings of theii own inuiviuual
iuentity. The majoiity stiongly agieeu that they feel happy, satisfieu anu
tienuy. Noieovei, the majoiity uiu not have stiong opinions if they piefei
to be visible in a ciowu oi a gioup when they weai a new jacket. Likewise,
the iesponuents uiu not agiee oi uisagiee when we askeu to what uegiee
they likeu clothes with stiong anu biight colouis. This is an inuication that

SS
Fleischei Coutuie shoulu also piouuce clothes in neutial colouis if they
want to ieach a laigei segment.


A0D06 N-34&%' 9$,'&-$* O @(2'$- %:3'C$*
We askeu the iesponuents questions that coulu give us infoimation of
what they aie looking foi in a piouuct when they buy wintei clothes. The
majoiity think that quality, piice anu comfoit aie somewhat impoitant
when they buy wintei clothes. It is notewoithy that in this question - theie
was an eiioi in the softwaie anu incoiiect couing. (uiipsiuu, 0lsson,
Silkoset, 2u1u). The potential answei oppoitunities stoppeu at: "(/2+L#$%
'24/-%$5%8 anu uiu not go fuithei to veiy impoitant. Thus, we can assume
that moie iesponuents coulu have answeieu something else if possible.


A0D0> N-(%$P$:,*'(%('.
The iesponuents uo not have any significant opinion of whethei they
woulu pay moie foi tienuy anu fashionable jacket. 0n the othei hanu, the
majoiity agiee that they woulu pay moie if they believe the quality is high,
if it is spoity anu pioviues comfoit. Noieovei, oui finuings say that; S4%
woulu not pay moie than 1Su-Suu Euios foi a spoity, tienuy anu high
quality jacket. The minoiity anu 21 % woulu pay less than 1Su Euios; 17%
woulu pay Suu-4uu Euios, anu finally 8% woulu pay 4Su-6uu Euios. With
iegaiu to the piices in the specialist stoies; 6S% of the iesponuents think
that the piices in the Alps aie ovei piiceu anu expensive; Rhne Alps anu
SS% think it is same as othei places. This suggests that the majoiity woulu
uemanu piouuct auueu value such as special tieatment, iecognizeu bianu,
extiaoiuinaiy expeiiences oi supeiioi quality befoie puichasing anything
foim the specialist stoies.




S4

A0F 7,&*,: 4$*(=2 O 1+8:$+$2'$4 $#8$-(+$2'
We implementeu an expeiiment in the questionnaiie anu the iesponuents
ieceiveu a pictuie of one of Fleischei Coutuie`s main piouucts, with two
uiffeient explanations uiviueu in two sepaiate gioups.
Those who ieceiveu a pictuie that uesciibes a fashionable anu tienuy
jacket, woulu pay a mean of S72 Euios. Seconuly; the iesponuents that
ieceiveu an explanation, which uesciibes a spoity jacket with high quality
jacket woulu pay a mean of 172 Euios. Noieovei, what is inteiesting is
that the answei fiom the expeiiment uoes not coiielate with the finuings
in the questionnaiie wheie only S4% woulu pay moie than Suu Euios foi
a jacket that is both fashionable, spoity anu with high quality. This
illustiates that the combination of pictuies, bianuing, anu communication
is impoitant. Answeis fiom both pictuies imply that all the iesponuents
think that the quality of the jackets is goou anu likewise pleasant anu
favouiable. Neveitheless; 71% saiu they woulu uefinitely not buy this
jacket with the fixeu piice we placeu in the expeiiment; 7Su Euios.
A0H I$*' 39 C.83'C$*(*
With the iesults fiom the methouology anu oui liteiatuie ieview we aie
now able to test oui hypothesises enlighteneu by the impoitant finuings;
DS <% '( '24/-%$5% I/- L/2+5 $5= %#+'- (+*IU+(%++2 %#$% ,*/%#+( #$;+ $
%-+5=F =+('O5 L'%# I05,%'/5$* =+%$'*( $5= %#'( ,-+$%+ $ 2$-3+% 4/%+5%'$*
I/- )*+'(,#+- ./0%0-+ '5 )-$5,+S
The finuings fiom oui focus gioup anu the suivey inuicate that this
hypothesis is tiue. Consumeis aie influenceu by the socio- cultuial
enviionment, the maiket tienus anu fiom theii iefeience-gioup. The
majoiity saiu they feel happy, confiuent, anu satisfieu when they buy a
new jacket. Auuitionally, a ceitain style of clothes influence the consumei's
feelings of theii own inuiviuual iuentity anu uue to the maiket tienus it is

SS
impoitant foi consumeis in Fiance that the clothes aie innovative, with
tienuy uesign anu this is connecteu with FC piouucts anu image.
A0J N-(+,-. 4,', :(+(','(32*
Fiist we will claiify that oui suivey is sent thiough the uEN uatabase to
women between 18 -Su yeais. This is because the iepoit was wiitten
unuei a tight scheuule anu we wanteu as much answeis as possible within
toui taiget gioup. Consequently, the answeis aie fiom both national anu
inteinational stuuents. We aimeu to ieach out to 1uu iesponuents anu
expeiienceu uifficulties anu was able to collect S4 answeis. Thus, the
methouology finuings shoulu be ieau with limitations, as this was a cause
of coveiage eiiois. (uiipsiuu, 0lsson, Silkoset, 2u1u). The iesponuents aie
inteiconnecteu with uienoble uiauuate School of Business anu the
answeis might be influenceu by a ceitain subcultuie oi concentiateu
socio-cultuial views. In the suivey theie was an eiioi in two of the
questions caseu by wiong softwaie coues. This coulu have been pieventeu
thiough bettei pietesting of the suivey (uiipsiuu, 0lsson, Silkoset, 2u1u).
Neveitheless; all of the iesponuents met the uemogiaphic ciiteiia of age
anu the suivey weie sent out to stuuents, stuuents with job anu full-time
employeu people.

A0L G$:(,;(:('. ,24 ^,:(4('.
It is impoitant to test the valiuity anu ieliability of the suivey. This how
well we have appioacheu the specific objecetives. By ieliability means; if
one can actually tiust the collecteu iesults anu by valiuity means
(uiipsiuu, 0lsson, Silkoset, 2u1u) anu by valiuity means the stiength of an
aigument oi a pioof. The quantitative pait shoulu be highly ieliable as it is
baseu on collecteu theoiy of the subject anu we evaluateu oui questions
befoie they weie sent out to the iesponuents. Fuitheimoie, cieateu the
suivey with suggesteu methouology theoiies anu questions that aie easiei
to analyse anu opeiationalize to measuiements.

S6
To test the valiuity of oui suivey anu the expeiiment we shoulu
uistinguish between inteinal anu exteinal valiuity (uiipsiuu, 0lsson,
Solbeig, 2u1u). The inteinal is if the extent of causality is peifoiming well
enough. Anu the exteinal is if it can be tiansfeiieu to similai situation.
Since we uiu a ieal expeiiment we can assume both the valiuity anu the
ieliability to be high foi the expeiiment.
In oui expeiiment, the iesponuents uiu not have enough backgiounu
infoimation anu only a pictuie of a piouuct they coulu not feel anu touch it
anu this might be negative on the valiuity of the methouology. Finally, we
uiu not ieceive the numbei of answeis we hopeu foi; thus the valiuity of
the suivey is in effect low anu in consequence weakens oui finuings oi
pioof. (uiipsiuu, 0lsson, Silkoset, 2u1u)

A0/M B$'C343:3=. 732%:&*(32 P 732%$8'&,: E2,:.*(*

The consumeis uo not puichase wintei clothes often anu in consequence
they aie veiy selective when they uiscovei the neeu. Noieovei, the
consumei typically value quality, comfoit anu functional uetails. The
customei is willing to pay moie foi the piouuct fiom specialist stoies as
they offei extia auueu value anu knowleuge. In auuition to the piouuct
featuies; Image anu bianu is impoitant. Likewise, bianu loyalty uecieases
the piice-elasticity, as the customei believes it is woith to pay foi theii
favouiite bianu.
In the clothing inuustiy the tienus changes iapiuly anu so uoes the
customeis inuiviuual styles; hence the tienuy anu fashionable aspect is
impoitant foi the customei self-esteem. The segment anu FC taiget gioup
want to feel happy, tienuy anu confiuent. Neveitheless, the majoiity uiu
not have any opinion if they piefei to be visible in a ciowu oi theii
iefeience gioup. Likewise, the iesponuents uiu not stiongly agiee oi
uisagiee when we askeu to what uegiee they likeu clothes with stiong anu
biight colouis. This is an inuication that Fleischei Coutuie shoulu also

S7
piouuce clothes in neutial colouis if they want to geneiate moie piofit
fiom this segment.
Finally, we founu a uiffeience in the answeis with iegaiu to how much
they woulu pay foi a fashionable oi a spoity jacket. The answeis inuicate
that as long as FC maiket theii piouuct as a spoity jacket with tienuy anu
fashionable uetails; the customeis woulu most likely pay moie foi those
featuies. This will howevei be uiscusseu subsequent when we piesent oui
suggestion foi FC entiy stiategy to the Fiench maiket anu theii
maiketing-mix


S8

1RI"GRE? ERE?XK1K


S9

D0 12'$-2,: E2,:.*(*

D0/ IC$ E7" O +34$:

FC ability to become successful expoiteis is analyzeu with Solbeig anu
othei scientist's finuings of whethei oi not theie aie iemaikable
uiffeiences between successful oi less successful expoiteis. Fiist, the most
impoitant is how FC chose to woik with theii potential futuie maiket
netwoik in Fiance. The netwoik suppoit the maiketing piocess anu the
opeiations. (Solbeig, 2uu9). Auuitionally, when analyzing FC anu whethei
oi not they aie piepaieu foi the Fiench maiket anu inteinationalization in
geneial - the ACE fiamewoik help us claiify inteiconnecteu factois
founueu in Solbeigs ieseaich anu fiom othei contiibutions. The ACE
fiamewoik incluues the following thiee components; Attituues,
Competence, anu Embouiment see appenuix 4.1.

D0/0/ E''('&4$* '3@,-4* -(*<
Success involves a positive attituue to investments abioau in geneial.
(Solbeig, 2uu9) With the infoimation we have fiom FC anu theii iisk
assessment at the Noiwegian Naiket we woulu suggest that they base
theii investment upon offeieu maiket knowleuge in Fiance as this will
give them a giounu of infoimation because of scaicity in capital compaieu
to biggei competitois.

"#$#% &'()*+ ,(-*.+'+-/.
Naiket 0iientation is an expiession of a geneial leaueiship philosophy of
with the use of infoimation fiom the maiket that involve customei
ielationship (Solbeig, 2uu9.) FC taigets a segment with niche piouucts
thiough ietaileis that focus on the same type of customeis with the same
uemanus.

4u

We iecommenu that if FC launches the piouucts in Fiance they shoulu
focus moie on the consumeis anu not too much on the piouuct as long as
they pieseive a balance to avoiu significantly iise in costs. uoou ielations
with the customeis anu netwoiking in Fiance will be the impoitant to
piocuie a bettei maiket oiientation at the Fiench maiket.

"#$#0 1++-+23*4 +/5'(34 6/(*-7. 829+2(*4
With limiteu infoimation of FC attituue towaius foieign cultuies makes it
uifficult to foiecast how they will success on this level. (Solbeig 2uu9)
Neveitheless, it is impoitant foi FC to consiuei the cultuial uiffeiences
explaineu latei in this iepoit as cultuie influence maiket anu customei
peiceptions. Insteau of uelibeiate uiffeiences as baiiieis FC shoulu focus
positively anu focus moie towaius possible giowth when choosing iathei
than pioblems that might occui in ceitain aieas. (Solbeig: 2uu9)

D06 73+8$'$2%$

"#%#$ :';'<-9-+=
The uesign baseu upon Noiwegian heiitage is theii most stiategic
capability within this fiamewoik. (Solbeig, 2uu9) FC uoes all the uesign
inteinally within the oiganization anu the only outsouicing goes out to
0NILEvER. With iegaiu to language, unueistanuing of cultuie, opeiations
anu auveitisement, Solbeig wiite that this is not the most essential foi
successful expoit.

"#%#% &'()*+-.7
Kotleis concept of the piouuct emphasize the maiketing acpect of the
ACE-mouel anu consists the following piouuct levels (Solbeig,2uu9); The
basic piouuct, the physical piouuct anu the extenueu piouuct, appenuix
4.2. We will uesciibe the impoitance of theii piouuct latei in this iepoit
anu only explain this biiefly to claiify the maiketing aspect of the ACE-
mouel. It is at the level of the extenueu piouuct FC has theii focus anu

41
wheie they uiffeientiate themselves fiom the othei piouuceis. The
piouucts aie piomoteu with focus on the high quality, innovative uesign
anu that the jacket collection is piouuceu in limiteu euitions.

Seconuly, the positioning they have touay has been beneficial but this
shoulu also be moie contiolleu anu stieamlineu because success comes
fiom active maiketing anu aggiessive piomotion. Neveitheless, FC knows
how to uevelop maiketing knowleuge anu how to coopeiate with ietaileis
anu leaining oveit time will pioviue positive iesults.

D0> "+;34(+$2'

It is elementaiy foi success that the company must have the same
attituues towaius theii goals. Reseaich suggests that expoit piioiity might
ease the maiket entiy anu will be auvantageous foi FC in the long-teim
peispective. Noieovei, assumption can be maue anu that leaueis in
successful expoit companies spenu moie time on the inteinationalization
component than the less successful ones. (Solbeig, 2uu9)

D0>0/ 732%:&*()$ -$+,-<*
The uynamics in this fiamewoik aie inteiuepenuent anu FC ought to woik
haiuei at theii weakest point to become a successful export company. By
this means that FC shoulu focus moie on the stiategies anu investment in
maiketing uevelopment. The maiketing management anu oiganizational
uevelopment shoulu be piioiitizeu. FC is a small playei at the maiket anu
they shoulu use the expoit piocess to gain insight anu new competences
giauually. Inteinationalizing foi such as small enteipiise is about taking
caie of the benefits at the small local maikets with oppoitunities to
succeeu.





42

D0A K'-,'$=(% %,8,;(:('($*

Stiategic capability is the iesouice anu those competences an oiganization
neeu foi suivival anu foi business to piospei. (}ohnson, Whittington,
Scholes, 2uu8) Biffeient wiiteis anu manageis often use uiffeient teims
when explaining theii stiategic capability anu compiehension of what lies
behinu this teims is impoitant. Nouel in appenuix 4.S.
D0A0/ G$*3&-%$* ,24 %3+8$'$2%$*
The most basic concept of stiategic capability is the iesouices. The
tangible iesouices aie the physical assets such as plant, people anu theii
financial capital. (}ohnson, Whittington, Scholes, 2uu8) The Intangible
iesouices aie the non-physical assets such as theii ieputation, what they
know anu infoimation. The intellectual capital is an intangible iesouice
anu incluues patents anu the bianu. But theie is no point in having this
valuable bianu if it is not useu effectively. The efficiency of people in the
oiganization is closely ielateu to coopeiation, ielationship with customeis
anu theii supplieis. Expeiience anu leaining is also impoitant in the long-
teim. The competences is those skills by which the iesouices aie
oiganizeu successfully thiough an oiganizations activities anu piocesses.

D0A06 IC-$*C3:4 %,8,;(:('($*
It is impoitant to make a uistinction between capabilities; Resouices oi
competences that aie at thiesholu level anu those that might help FC
achieve competitive auvantage. (}ohnson, Whittington, Scholes, 2uu8) The
thiesholu capabilities aie neeueu to meet the necessaiy iequiiements so
they can compete in a given maiket. 0n example thiesholu iesouices that
aie iequiieu to oiganize iesouices so one can meet the customei
minimum iequiiements.




4S
D0A0> 14$2'(9(%,'(32 %C,::$2=$*5
Thiesholu levels of FC capability will change when the ciitical success
factois change - anu thiough activities of theii competitois anu new
entiants. (}ohnson, Whittington, Scholes, 2uu8) Such as the supplieis
iequiie new technology to uelivei eco-fiienuly mateiials - anu the ability
to piouuce this. Thus, all the components in the value chain must impiove
the competence anu iesouice coiiesponuingly just foi FC to stay in
business.

Tiaue-offs might be maue so that FC achieves the thiesholu capabilities
that aie iequiieu fiom uiffeient soit of customeis. (}ohnson, Whittington,
Scholes, 2uu8) Theie is uifficult to compete in one segment that iequiie
laige quantities of stanuaiu piouucts anu in a segment that iequiie
piouucts with auueu value oi niche piouucts. The uangei if one uoes not
achieve the thiesholu capabilities iequiieu foi eithei segment is that the
business will fail.

D0A0A &2(V&$ -$*3&-%$* ,24 %3-$ %3+8$'$2%$*
Thiesholu capabilities uo no cieate competitive auvantage themselves. It
uepenus upon the oiganizations stiategic capabilities competitois will finu
uifficult to imitate. (}ohnson, Whittington, Scholes, 2uu8) The most
sustainable competitive auvantage is baseu on the concept of coie
competences uevelopeu by uaiy Bamel anu C.K. Piahalau. By this means
the skills anu abilities otheis cannot obtain oi imitate. We will uiscuss
Fleischei Coutuies geneiic stiategies, anu stiategic capabilities fuithei
with a value-chain analysis anu in the inteinal analysis.

D0D N3-'$-* 'C-$$ =$2$-(% *'-,'$=($*

Poitei has pioposeu thiee geneiic stiategies to achieve a competitive
auvantage, appenuix 4.4 (http:www.minutools.com). Baseu on the
pioposal we imply that FC cuiiently has a positioneu in the component
with focuseu stiategy towaius uiffeientiation. This is because they offei

44
limiteu niche piouucts anu theii stiategic capabilities aie the iesouices
that help them geneiate supeiioi piouucts compaieu with the competitois.
The stiategic capability is the unique composition of FC assets they neeu
to suivive in the maiket, as we will uiscuss fuithei in the vRI0-fiamewoik.

D0F ^G1WP ERE?XK1K
Eveiy company shoulu have a competitive auvantage baseu upon theii
stiategic capability. (}ohnson, Whittington, Scholes, 2u11) The piouucts
aie solu thiough ietaileis to the enu-customeis that geneiate the uemanu;
hence the customeis aie the ieal inteiest of FC. The jacket collection is the
main iesouice of theii futuie sales ievenue anu the capability that
geneiate customei value. The vRI0 fiamewoik has been auueu to this
iepoit to ueteimine the iesouice capabilities anu competitive auvantage
anu why it suppoits the customei choice of FC clothing. This fiamewoik is
baseu on foui uiffeient aspect to uiscovei to what extent the iesouice is;
valuable. Raie, Inimitable anu 0iganizeu.
D0F0/ ^,:&,;:$
FC jacket collection with high quality anu innovation helps them meet
theii exteinal thieats anu exploit the oppoitunities at the maiket. The
piouuct will not outpeifoim competitois completely; but in uespite of this
the iesouice is still a competitive auvantage anu a value pioposition to the
customeis.

D0F06 G,-$
The collection is iaie as FC auueu a special message with infoimation of
the mountain the jackets was inspiieu by, a map anu hiking uesciiptions.
Noieovei the jackets aie only piouuceu in Suu limiteu pieces with theii
own inuiviuual numbei, anu might be piouuceu fiom eco-fiienuly
mateiials in the futuie.







4S
D0F0> 12(+(',;:$
It is uifficult to substitute this jacket given the intangible iesouices. The
jackets aie maue in limiteu euitions, solu to a specific segment, anu most
impoitantly the uesign aie baseu upon the cultuie of Noiway anu the
outuooi activity cultuie as well as it is maue foi uiban living. This is
something foieign competitois cannot substitute. Neveitheless, this is a
uifficult component to examine as almost any iesouice can be imitateu.
Even though it has valuable, iaie anu intangible aspects, we finu that the
iesouice is substitutable because competitois can substitute them with
any othei jacket oi wintei clothing. The technology is not costly to imitate
eithei. In conclusion, this is not an Inimitable iesouice.

D0F0A W-=,2(],'(32
The iesouice is oiganizeu if the fiim is able to use it. That is exactly what
FC has been able to uo with the uesign baseu upon the Noiwegian Cultuie
anu the uiban living in combination with the piomotion of leisuie out in
the natuie. Noieovei theii piouuct uesign is baseu upon theii coie values;
quality, innovation anu natuie.

D0F0D 732%:&*()$ G$+,-<*
Nany uiffeient scholais iefei to coie competencies that aie completely
vRI0. A coie competence can only be achieveu when they know the
customei iequiiement foi piouucts bettei then the competitois anu can
tailoi all theii iesouices to meet the unique neeus of the taigeteu gioup.
Bowevei FC uoes not have a complete coie competence by this uefinition
but a combination of vR_0 as the Noiwegian Cultuie at the maiket is
valuable, anu theii peisonalizeu uesign is iaie anu the iesouice aie
uefinitely useu anu oiganizeu. Even though theii piouuct is a vR_0
iesouice, they still have a competitive auvantage.





46

D0H ^,:&$ 7C,(2 ,%'()('($* P Y(,=23*(2= *'-,'$=(% %,8,;(:('($*

Theie aie tenuencies to focus on the iesouices that aie cuiiently
appiopiiate anu that can leau to a pooi analysis on how FC uiffeis fiom
otheis. Thus, we have analyzeu the FC value-chain (figuie 1.1) to examine
all the valuable iesouices. By analyzing all the functions we can potentially
finu moie vRI0 iesouices. In auuition to the iesouice of stiategic
capabilities anu competitive auvantage we will uiscuss the value-chain
focus on all that activities that embouy FC as an oiganisation anu that can
contiibute a long-teim feasible stiategy at the maiket (}ohnson,
Whittington, Scholes, 2uu8)
)'O0-+ DSDV G#+ ;$*0+ ,#$'5
D0H0/ K&883-' E%'()('($*
The Fiim infiastiuctuie is the fiist suppoit activity of the value chain anu
the main-pillai of the whole company. FC has a self- containeu
infiastiuctuie anu this can be a poweiful souice of competitive auvantage.
The seconu suppoit activity is the Buman Resouice Nanagement. The
owneis have the geneial management in this company anu take caie of the
goveinmental anu account aspects within the fiim. They aie not many
employees anu they save money on ieciuitments anu wages. In auuition,
the management has a shaieu vision of FC futuie goals that can be a
Production
Univern
- Design and sale
- Marketing
- Inbound logistics
- Outbound logistics
Fleischer Couture
- Distribution and
sale
40 stores
throughout
Norway
Women 20-35
years
Customer

47
competitive auvantage as well.
The thiiu suppoit activities aie the technology uevelopment component
that in oui case is the uesign anu piouuct impiovement, piocuiements anu
implementation of seivices. This is also uone by the owneis anu within the
self-containeu infiastiuctuie. Again this is a competitive auvantage as FC
can ieact quickly towaius the tienus at the maiket. Piocuiement is the last
of the suppoit activities anu foi FC this means that they aie the ones that
puichase anu oiuei supplies, the office equipment anu take caie of theii
heauquaitei. Noieovei the uesign anu sale aie maue fiom theii office in
0slo.
D0H06 N-(+,-. E%'()('($*
Inbounu logistics iepiesent the fiist categoiy of the piimaiy activities.
This compiomise the activities in the value-chain ielateu to the ieceipt
fiom the inputs necessaiy foi the piouuction. This is the goous that
alieauy have been puichaseu with piocuiement in the suppoit-activities.
The activities ieceive anu stoie the inputs anu the inputs aie uiffuseu
within the uepaitment. Involveu in this categoiy is fuitheimoie
waiehousing, inventoiy contiol anu ietuin to theii supplieis. FC have
theii logistics close to theii office anu this give them close contiol ovei the
inventoiy anu may ietuin any infoimation to the supplieis 0NIvERN.
The seconu anu thiiu piimaiy activities aie the opeiations anu outbounu
logistics; packaging, oiuei piocessing, scheuuling anu ueliveiy. This is
likewise peifoimeu by FC heau-office anu by the owneis.
The fouith piimaiy activity is maiketing anu sales of the piouuct anu the
owneis manage the maiketing-mix; Piice, Piomotion, Place anu, Piouuct.
The maiketing activities have been thioughout meuia aiticles anu woiu of
mouth. They have a close ielationship with among 47 ietaileis in Noiway
anu tianspoit the piouucts themselves uiiectly to the stoies. In auuition
they sell theii piouucts thiough inteinet-uistiibutois.


48
D0H0> 732%:&*()$ -$+,-<*
The heau office contiols the majoiity of the piimaiy anu seconuaiy
activities. Regaiuing the size of the company touay; the activities
contiolleu by the ownei can be auvantageous when they ueciue to expoit
theii piouucts to Fiance. If they giow iapiuly anu get an investoi, they
might outsouice uiffeient activities in the futuie. If so, compiehension of
wheie iesponsibility anu activities shoulu be allocateu to maintain contiol
within the heau-office is impoitant.

D0J IC$ UEZZE O B34$:5

The BAKKA - mouel explain factois influencing the company juugments.
(Solbeig, 2uu9). Solbeig uefines an inteinationalization mouel in five
phases; Tiial expoit, Extensive expoit, Intensive expoit, Nulti-national
expoit anu finally, ulobal Naiketing. The phases anu all uiffeient activities
aie inteiuepenuent anu oiganiseu uiffeiently in all companies. Bence, we
iuentifieu FC activities anu wheie in the phases FC is positioneu to uefine
how the components aie uealt with in the company. The BAKKA - Nouel
uesciiption can be vieweu in appenuix 4.S.

D0J0/ "#83-' +3'()$5
The expoit motive is spieauing fiom /4+-$%';+ to J$(',$**F (%-$%+O',S
FC is a small company with piocesses only in Noiway. They have sales to
47 ietaileis thioughout the countiy anu Inteinet uistiibutois. We assume
is uifficult to obtain moie maiket shaie in Noiway within the niche anu
theii segment anu it is iecommenueu to expoit. The expoit will give them
new auvantage fiom maikets shaie abioau in auuition to impioveu sales
at the iefeience maiket in Noiway. FC uoes not have expeiience of othei
maikets anu expoit technical conuitions. In enu, we place FC in %-'$* +W4/-%
in this component.



49


D0J06 7C3(%$ 39 +,-<$'5
Theie is a iisk is involveu foi the company as they can fall into less
favouiable positions. Theie is a uangei that coopeiation with wiong
paitneis can uestioy the piogiess. Theiefoie, the safest choice foi FC is to
entei a maiket that is not geogiaphically fai fiom Noiway as this allows
FC to maintain a ceitain amount of contiol. The expoit shoulu also happen
with expansion to one countiy at a time. FC is in this component placeu in
%-'$* +W4/-%S

D0J0> B,-<$' *C,-$5
FC uoes not have big maiket shaies compaieu to the majoi competitois
anu this will be uiscusseu latei in a stiategic gioup analysis. Neveitheless,
they have sales tiough 47 ietaileis imply that FC touay is a visible bianu in
the iefeience maiket. Bowevei piomotion not a piioiity in the company
anu in consequence, we place FC in the stage of +W%+5(';+ +W4/-% in the
maiket shaie component; they aie negligible but not invisible.

D0J0A W-=,2(*,'(325
The owneis aie the only employees in FC touay. They take caie of all the
inteinal opeiations fiom uesign, maiketing, sales to uistiibution of the
piouucts. They have expeiience in business opeiations anu they aie both
woiking towaius a shaieu goal. Bowevei, one of the two is woiking with
the bianu full time, while the othei is only ueuicateu in FC on pait-time.
FC is consequently a "one man show" on both full anu pait-time. Theie is
no full time ueuication to the company anu FC in this case also placeu in
%-'$* +W4/-%.

D0J0D "2'-. *'-,'$=.5
FC uoes not have sales to any foieign maikets touay. In auuition they uo
not have any sales offices, uistiibutois oi uistiibutions agents. Theii entiy
stiategy is concluueu to be %-'$* +W4/-%S

Su



D0J0F UEZZE B,-<$'(2= +(#5
The sale of piouucts is mainly thiough auoption. By this means that FC
iesponu to the customei iequiiement in the uesign. The piice is howevei
ielative high, something that is against placing the company in tiial oi
extensive expoit in the BAKKA -mouel. Thus, with the othei facts fiom
theii maiket ting mix anu theii business piofile, we have moveu FC to the
stage of +W%+5(';+ +W4/-%.

D0J0H "%323+(% -$*&:'5
The total tuinovei incieaseu with a piofit of t 126,S82 2u1u. Still, this
element alone cannot help the company suivive in the futuie. The
investments in the company is only fiom equity, anu they imply that in
oiuei too expanu they might neeu help fiom an investoi. Thus, FC is
placeu at %-'$* +W4/-%S

D0J0J 732%:&*()$ -$+,-<*
FC has been placeu in tiial expoit in five of the seven components in The
BAKKA fiamewoik. In total, FC is placeu in the stage of %-'$* +W4/-%S Futuie
stiategies shoulu be baseu upon this infoimation anu any expoit shoulu
happen giauually in accoiuance with leaining. It is impoitant that theie is
a shaieu vision anu coopeiation to theii goal. Netwoiking is paiticulaily
impoitant to uiminish iisk.







S1



D0L U3*'32 732*&:'(2= [-3&8 O B,-<$' *C,-$ (2 -$9$-$2%$
+,-<$'

It is iecommenueu that one shoulu analyse the company`s shaie in the
iefeience maiket because it is ielevant foi inteinationalization. The BCu
(Boston Consulting uioup) fiamewoik is baseu on two components; the
companys giowth on the iefeience maiket; anu the maiket shaie FC have
in this maiket compaieu to theii gieatest competitois. (}ohnson,
Whittington, Scholes, 2u11) The BCu - Natiix fiamewoik incluues the
piouuct life cycle to inteipiet wheie focus shoulu be in the futuie. The
BCu-Nouel anu the piouuct life cycle aie illustiateu in appenuix 4.6.

In auuition, we analyseu wheie FC is positioneu baseu on the piouuct life
cycle, the piouuct poitfolio anu gave it a ceitain symbol: Cash cow, uog,
question maik oi a stai. The stai is a business unit with a high maiket
shaie in a giowing maiket, the question maiket is in a giowing maiket but
without a maiket shaie, the cash cow is a unit with a high maiket shaie in
matuie maiket anu the uog is a unit that is consiueieu having a low shaie
oi a ueclining maiket. (}ohnson, Whittington, Scholes, 2u11) We will only
uiscuss the position that is ielevant foi Fleischei Coutuie.

D0L0/ N-34&%' :(9$ %.%:$ O U&*(2$** =-3@'C -,'$

The piouuct life cycle illustiates the giowth iate of piouucts oi seivices in
a maiket, appenuix 4.7 (Solbeig, 2uu9). The piouucts life cycle has foui
stages: Intiouuction - giowth - majoiity anu finally the stage wheie a
piouuct will uecline. FC has been piesent at the Noiwegian maiket foi a
few yeais, anu they aie still cultivating at the maiket. FC launcheu theii
fiist piouucts in 2uu6 anu piouuceu base layei clothing in 2uu8. With

S2
incieasing tuinoveis, we finu them no longei in the intiouuction pait as
the bianu is moie iecognizable. It is notewoithy that the jacket collection
has ieacheu the stage of majoiity. Theiefoie, we finu FC in the high
business giowth iate at the BCu - matiix.

D0L06 B,-<$' *C,-$
The competitois FC encounteis on the Noiwegian maiket touay aie
significantly laige companies. It is assumeu that if a company only have
1u% maiket shaie but no otheis aie close to this peicentages, it is still a
big maiket shaie. Theie is a gioup of smallei actois fighting foi the
iemaining shaies in the maiket, anu FC is among these. Theii piouuct`s is
solu to 47 uistiibutois in Noiway, meiely a small pait of the potential
maiket. Thus, the company has a low maiket shaie in the BCu - Natiix.
Theie is a subsequent exploiation in this iepoit of the competitive iivaliy.

D0L0> 732%:&*()$ -$+,-<* 9-3+ 'C$ U7[ +,'-(#
The piouuct life cycle mouel inuicates that FC is a giowing company anu
we placeu them in the "high giowth" phase. The maiket aspect founu them
to have a low maiket shaie. In conclusion FC is a question maik as they
still anu FC shoulu move towaius the "stai" component by choosing new
maikets anu finu iesouices to expanu the piouuct poitfolio.

F0 G$:$),2' *',<$C3:4$-*

XN%$3+#/*=+- 2$5$O+2+5% '( ,-'%',$* %/ %#+ (0,,+(( /I +;+-F 4-/Y+,% '5 +;+-F
/-O$5'Z$%'/5 < #$;+ +;+- L/-3+= L'%#S [F +5O$O'5O %#+ -'O#% 4+/4*+ '5 %#+
-'O#% L$F '5 F/0- 4-/Y+,%? F/0 ,$5 2$3+ $ J'O ='II+-+5,+ %/ '%( (0,,+((8
Rachel Thompson, (minutools.com) Iuentification of the most impoitant
stakeholueis shoulu be maue befoie any piepaiation of new stiategies.
The amount of stakeholueis anu theii powei uepenu on the size of a
company anu the opeiations. The moie successful you get, the moie
people aie influenceu by youi uecisions (minutools.com)


SS
The stakeholuei map is a fiamewoik that incluues both the powei of the
stakeholuei anu the inteiest they have in company uecisions. If inteiest
anu powei aie high, the stakeholueis must be manageu closely in the
futuie stiategy. But, if both aie low, a company uoes not have to give them
moie than minimum effoit.

N044*'+-(V FC ielies on supplieis because they uelivei fabiics anu mateiials
necessaiy foi piouuction anu the company have a ceitain inteiest in the
supplieis. Neveitheless, FC has the powei to choose fiom many supplieis.
Because the piouuction is outsouiceu to 0NILEvER anu iaw mateiial
supplieis is selecteu by 0NILvER fabiics; FC inteiest is in the piouuction
fiom 0NILEvER anu they shoulu be kept satisfieu.

\/;+-52+5%V The goveinment is the final uecision makeis with
enfoicement anu powei ovei how business shoulu be conuucteu. We can
assume that the Fiench uoveinment have inteiest in oui expansion anu FC
must follow local laws anu iegulations. This shoulu also be seen in light of
foieign uiiect investments anu that uiffeient laws will altei the outcome.
The goveinment usually have high powei anu FC shoulu manage them
closely with inteiest.

.0(%/2+-(: The ietaileis shoulu be placeu at Keep Satisfieu because they
aie the ones that uistiibute FC piouucts to the enu-customei. The
customeis have high powei because they can easily switch between
uiffeient piouuceis anu bianus. The powei in the futuie will uepenu on to
what uegiee FC cieates bianu loyalty anu awaieness; hence they shoulu
allocate extia financial iesouices to maiket activities anu manage them
closely. Nost impoitantly, we will uiscuss latei that theie is a uemanu
aftei moie eco-fiienuly piouucts in Fiance anu FC opeiations have effect
on the enviionment. In conclusion, the final customei must be kept
satisfieu anu manageu closely.


S4
]/%+5%'$* +24*/F++(: Touay, FC has no othei employees than themselves.
Bowevei, with an expansion to Fiance e.g. an agent might be involveu in
the company anu uepenuing on how fast FC giow at the maiket; othei
employees must be hiieu as well. The agent will to a ceitain uegiee be
toucheu by the inteinal uecisions anu potential employees aie placeu at
Nanage Closely.

N#$-+#/*=+-(V Investment fiom investois will almost ceitainly be neeueu
in the futuie peispective. The iesult fiom investments is a shaieholuei
with high inteiest anu high powei in the company. An investoi want piofit
back in the futuie anu shaieholuei inteiest must be taken into account.
Biffeient theoiist as Nilton Fiieuman says that the only impoitance of a
fiim is to cieate stakeholuei piofits (Beaven, 2u12) Conveisely, ethical
pioblems is touay seen in the light of Eu Fieeman anu his theoiies; both
shaieholuei anu stakeholuei theoiy is impoitant foi suivival. In
conclusion, shaieholueis shoulu be manageu closely.

<5%+-+(% O-/04(V The company know the impoitance of the enviionmental
sustainability anu aim to become moie eco-fiienuly. Neveitheless, FC is
touay a small enteipiise; we assume that the laige inteiest gioups anu
non-goveinmental oiganisations uo not have significant inteiest in FC
opeiations. Thus, Inteiest gioups uo not have a big powei in FC futuie
uecisions anu inteiest gioups aie placeu at minimum effoit.

F06 732%:&*()$ -$+,-<*
Foi business to piospei, the enviionment wheie one opeiates must be
piospeiing to. The stakeholuei mapping is a tool we have useu to analyse
they key stakeholueis that have to be taken into account at uecision-
making. We founu the potential shaieholueis, employeesagent anu the
goveinment to be manageu closely. Supplieis anu ietail customeis to be
kept satisfieu. Final customei to be kept satisfieu anu manageu closely,
inteiest gioups on minimum effoit. The stakeholuei map anu those
incluueu is illustiateu in appenuix 4.8

SS



H0 IC$ 7&:'&-,: e$;

The oiganization cultuie is impoitant to unueistanu; why it exists anu its
effect. We have incluueu the cultuial web that iepiesents the piocesses of
uoing things anu illustiate behavioi, physical anu symbolic manifestations
of a cultuie infoimeu by uiffeient assumptions oi the paiauigm of the
oiganization. The cultuial web can help FC with infoimation anu impiove
the business activities. (}ohnson, Whittington, Scholes, 2uu8). Illustiateu
in appenuix 4.9.

H0/ K'3-($*
The stoiies people cuiiently tell about FC anu the ieputation
communicateu among the consumeis anu stakeholueis. (}ohnson,
Whittington, Scholes, 2uu8) FC is an innovative company anu the clothes
aie maue to inspiie moie giils to use the natuie foi outuoois activities.
They aie two giils that launcheu a bianu foi giils that aie both fashionable
anu spoity. At the same time, they uo not piouuce enuless numbeis of the
jacket collection. A giil with clothes fiom FC has something special. The
message is that the clothes shoulu inspiie the customei to use the natuie
moie.

H06 G('&,:* ,24 G3&'(2$*
The uesigneis behinu FC have a passion foi the natuie they aie spoitive
anu active. (}ohnson, Whittington, Scholes, 2uu8) This behavioi
encouiages customeis to puichase this piouuct anu buy clothing because
it is eviuent that it has sufficient functions. The ioutines miiioi FC beliefs,
theie is a lot of talk about the natuie anu especially how to use it anu that
it shoulu be piotecteu.


S6
H0> K.+;3:*
The owneis weai theii own uesign in biight colois at uiffeient
aiiangement anu occasions. FC is veiy "uown to eaith", iational, anu this is
associateu with the image.

H0A W-=,2(],'(32,: K'-&%'&-$
The oiganizational stiuctuie is infoimal with a uynamic business cultuie
anu coopeiation thiough teamwoik.

H0D 732'-3: K.*'$+*
Costs aie highly contiolleu anu customeis aie billeu foi what is oiueieu.
Quality is impoitant, the goal is to pioviue the best piouucts foi as lowest
possible uiiect costs.

H0 F N3@$- K'-&%'&-$*
The owneis have ieal powei in the oiganization anu influence the
uecisions. They believe in a miuule piofit mouel, as they aie not piepaieu
to loose customeis; the intention is to maintain ielationships anu goou
coopeiation.

H0H 732%:&*()$ -$+,-<*
The opeiations aie not at the expense of the quality anu anu stakeholuei
satisfaction. FC only outsouices theii piouuction, thus the infoimal
appioaches anu ieputations within the contiol mechanism ieflect what
theii coie values stanu foi.

J0 12'$-2,: E2,:.*(* K&++,-.

Fleischei Coutuie has a geneiic uiffeientiation stiategy anu taigets the
segment with niche piouucts. Theii stiategic capabilities anu competitive
auvantage is the piouuct quality anu uesign baseu on the Noiwegian
cultuie. Likewise the clothes aie maue in limiteu euitions anu they sell

S7
theii piouucts thiough specializeu ietaileis.

Fuithei, we aigueu what iesouices anu competences that aie main
stiategic capabilities. The management has a shaieu cultuie anu a vision of
FC futuie goals that can be a competitive auvantage. In the vRI0
fiamewoik we founu that thee main stiategic capability iesouice is that
the piouucts aie maue of; Bigh quality mateiials, specially uesigneu with
inuiviuual numbeis anu peisonal messages fiom uesigneis. Bue to the
value chain; we aigueu that they have stiategic capabilities in image anu
bianu, ieputation anu uesign baseu on the Noiwegian heiitage. The
competence is in how they maiket themselves thiough Piouuction know-
how, Public ielation activities publisheu in meuia, Woiu of Nouth, close
anu peisonal ielationship with uistiibutois anu ietaileis. FC chaiges a
high piice, offeiing high value anu focuseu uiffeientiation. The company
cultuie is infoimal anu this fostei cieativity anu innovation anu is
beneficial in the long-teim peispective. We placeu FC within the
component of tiial expoit in the BAKKA-mouel anu concluueu that
expoitation piocess shoulu be giauually to a maiket that is convenient. In
the BCu-Natiix; FC is a "question maik" anu must seek new oppoitunities
so that ievenues anu sale inciease. Fuitheimoie, FC shoulu move towaius
the "stai" iathei than falling uown to a "uog". In the stakeholuei map we
founu that the goveinment, potential employeesagent anu shaieholueis
shoulu be 2$5$O+= ,*/(+*F.

S8

Ib" "fI"GRE? "R^1GWRB"RI


S9

L0 Ib" "fI"GRE? "R^1GWRB"RI

It is an impoitant concept foi oiganizations to unueistanu the business
enviionment because it encapsulates uiffeient influences anu the
complexity causeu by inteiuepenuence. (}ohnson, Whittington, Scholes,
2u8) The uiffeient layeis of the business enviionment aie illustiateu in
the mouel below. The outei layei macio-enviionment incluues uiffeient
enviionmental factois that impact oiganizations with uiffeient key uiiveis
of change. Iuentification of key uiiveis can cieate possible scenaiios anu
stiategies foi FC. The next layei is the inuustiy oi a sectoi with a gioup of
oiganizations that piouuces similai piouucts. This will be analyzeu anu
uiscusseu in a fiamewoik calleu Poiteis Five Foices. Fuithei, the layei
aujacent to the oiganization is the competitois anu the maiket itself. The
concept of stiategic gioups can iuentify uiiect anu inuiiect competitois
anu an unueistanuing of competitive iivaliy. The customeis also have
expectations anu uiffeient iequiiements that we will tiy to compiehenu
thiough maiket segments anu ciitical success factois.


)'O0-+ DSBV G#+ [0('5+(( @5;-'/52+5%

6u

L0/ 124&*'-. [:3;,:(],'(32

Touay the woilu is facing closei integiation anu companies seek to
establish themselves abioau. The integiation has occuiieu because of
huge ieuuctions within tianspoitation anu communications costs.
Noieovei theie have been bieakuowns of taiiffs anu non-taiiff baiiieis
that emphasize closei integiation anu a fiee flow of goous, seivices, capital,
knowleuge anu people acioss the national boiueis. This facilitates moie
effective maiketing anu financial aiiangements, (Solbeig: 2uu9). Cail
Aithui Solbeig, mentions thiee impoitant factois leauing to inuustiy
globalization; ]-/%+,%'/5'(% -+O0*$%'/5( '5 ,/05%-'+(? H$%'/5$*'(%', $%%'%0=+(
$2/5O J0F+-( $5= I'5$**F ='II+-+5% 4-+I+-+5,+( $2/5O ,0(%/2+- O-/04( /-
='II+-+5% %-$='%'/5( ,/5,+-5'5O %+,#5',$* (/*0%'/5(S

Since the eaily 198us, globalization has been a uominating foice in the
piouuction of fashion goous. The tiansnational coipoiations, cybei
technology, anu electionic mass meuia spawn a web of tightly linkeu
netwoiks that covei the globe. (angelasancaitiei.net) These foices have
iestiuctuieu the woilu economy, global cultuie, anu the citizen's uaily
lives. Tiansfoimations have been uiamatic in the ways uiess anu fashion
aie piouuceu, maiketeu, solu, bought, woin, anu thiown away. Theie has
been a bieakuown of taiiffs anu non-taiiff baiiieis that emphasize closei
integiation anu a fiee flow of goous, seivices, capital, knowleuge anu
people acioss the national boiueis. This facilitates effective maiketing anu
financial aiiangements.

Susan Kaisei saiu, "The tenuency towaius both incieaseu vaiiety within
geogiaphic locations anu a homogenizing effect acioss locations
iepiesents a global paiauox" (Kaisei1999, p.11u). Shopping malls in eveiy
city have the same stoies, anu sell the same fashion items. We finu
seemingly infinity anu often peiplexing aiiay of cuts anu fits. Fashion

61
images in magazines, music viueos, films, the Inteinet anu television speeu
theii way aiounu the woilu, they cieate a "global style". (Kaisei 1999).

Touay, a company can sell anu taiget Ameiican consumeis, anu piouuce in
China. It is no seciet that cheap laboui foice can easily be founu by eveiy
fashion piouucei in countiies such as China, Thailanu, Nexico, anu
vietnam (angelasancaitiei.net). The laboui foice is laige, anu wages can
be significantly uecieaseu with outsouicing to these countiies, thus
business becomes moie piofitable. With cheap laboui costs, ietaileis can
also lowei the piices of the final piouucts solu to the enu-
customei.(angelasancaitiei.net) The consequence of this is that
consumeis unintentionally paiticipate in the intensifying system of
competition among manufactuies.

Naiket infoimation anu finuings of consumei habits anu tienus in the
Fiench enviionment shoulu be analyseu befoie expoit as the enviionment
cieates long-teim oppoitunities, but likewise it also piesents thieats.
(}ohnson, Whittington, Scholes, 2u11). The enviionment has seveial
layeis; The Nacio - enviionment in Fiance will be uiscusseu in the
PESTEL fiamewoik. Noieovei, the theoiy of ueei Bofsteuet have been
incluueu to see if theie is significant cultuial uiffeiences between Noiway
anu Fiance so FC can be piepaieu foi possible cultuial challenges.









62

/M0 N"KI"? O B,%-3 $2)(-32+$2'

The PESTEL fiamewoik enlightens the changes in the maiket with six
uiffeient macio-enviionmental foices. (}ohnson, Whittington, Scholes,
2u11) We will uiscuss the political, economic, socio - cultuial,
enviionmental anu legal aspects in this analysis as all the foices aie
ielevant foi FC exteinal enviionment. Appenuix S.1.

/M0/ N3:('(%,:5

Fiance is a pait of E0 (Euiopean 0nion) anu uATT (ueneial Agieement on
Taiiffs anu Tiaue). Thus the goveinmental laws aie implementeu in
haimony with E0 iegulations anu uiiectives. The Euiopean 0nion anu
uATT piomotes a fiee maiket among the membei nations by the foui
fieeuoms; Fiee movement of laboui, piouucts, seivices anu capital. The
tiaue baiiieis aie iemoveu fiom the maiket anu highly iegulateu with the
uATT aiticles. (http:euiopa.euinuex_en.htm) Noiway is not a Euiopean
0nion membei, but membeis in the EEA anu EFT. Thus, Noiwegian
companies have the same iights anu must follow the same iegulations in
inteinational tiaue as any othei E0-membei. (www.eu-noige.oig).

The Fiench consumei tienus in the tiavel anu touiism inuustiy was
auveisely impacteu by the iecession anu the global ciisis - but this has
iebounueu fastei than expecteu. (Euiomonitoi Inteinational, 2u11Q
Touiism flows have been incieasing fiom 2u1u compaieu to 2uu9 anu
many Fiench take theii holiuays uomestic in Fiance. Neveitheless, they
have maintaineu the iecessionaiy minu-set anu ieuuceu spenuing in
ielateu maikets. Bespite of this, Fiances uBP is expecteu to giow anu
iemain positive; the touiism inuustiy is expecteu to be one of the most
giowing anu uynamic in Fiance.


6S
In oiuei to face challenges anu cope with the cuiient iecession, Fiances
boaiu of touiism has uevelopeu a stiategy; "Stiatgie Bestination Fiance
2u1u-2u2u". The boaiu aim to maintain Fiance as a leauei within the
touiism inuustiy. Fiance now seeks to significantly ieinfoice the
attiaction towaius moie high-enu tiavelleis anu cieate awaieness about
seveial attiactions within Fiance. The most inteiesting foi FC is the
incieaseu piomotion of Rhne Alps wheie theie is concentiations of ski-
iesoits anu specialist ietaileis.

The Fiench enjoy tiaveling incluue skiing anu hiking in the mountains
uepenuing on the seasons. Tiavel anu touiism will most likely contiibute
to iecoveiy anu sustainability fiom the iecession anu inciease consumei
spenuing on goous anu the aveiage spenuing within Fiance has been
expecteu to iise. (Euiomonitoi Inteinational, 2u11)

/M06 "%323+(%5

Fiance is in a time with iecession anu a suivey of the buying intentions in
Fiance ieveal that Fiench consumeis aie much moie cautious when it
comes to spenu money anu ieuuceu theii spenuing's in aieas such as
technology anu clothing. (Euiomonitoi Inteinational,: 2u12). Fuithei, the
iepoit states that aiounu 8% incieaseu theii spenuing's on clothing in the
yeai of 2u11. 0ne of the most impoitant emeiging tienus fiom the
iecession is the incieasing focus on value foi money causeu by ieuuceu
puichasing powei. (Euiomonitoi Inteinational, 2u1u).
In 2uu8 anu 2uu9 they ieuuceu spenuing on non-essential anu high enu
piouucts anu this has auveisely impacteu on sales in many sectois. The
futuie uBP - giowth anu inflation will continue giowing but on a smallei
scale (NcKinsey, 2u1u). 0n the othei hanu, the employment iate is
giowing in Fiance ieaching 1u% in Febiuaiy 2u12
(http:www.english.ifi.fi). If this iate continues giowing iapiuly, it will
have an effect on the miuule class of Fiance, anu FC's futuie eainings.

64
/M0> K3%(3 O %&:'&-,:5

The fashion habits of the Fiench consumeis uiffei geogiaphically.
Paiisians aie saiu to be moie fashionable than citizens in othei iegions.
(Euiomonitoi Inteinational, 2u12) Theie aie exemptions but it is eviuent
that consumei attituues to fashion vaiy baseu upon socio-economic
factois anu subcultuies. In geneial, Fiench consumeis tiy not to be ovei-
influenceu by exteinal factois anu keep theii own styles inspiieu by the
so-calleu classic iules of what is Fiench fashion. The Fiench keep theii
own style anu follow fashion anu tienus at the same time. Consumeis
think caiefully befoie making any expensive puichases anu some also
expect auuitional seivices. What can FC offei the consumeis so they
woulu be willing to pay foi theii piouuct.

The uecieasing puichasing powei has changeu theii attituue towaius
bianus. Consumeis buy piouucts tiough specialist stoies because they
connect this with quality piouucts. At the same time as piice is impoitant,
the consumeis choose the specialist stoies. Consumeis aie willing to pay
moie in specialist stoies because they associate this with tienuy anu high
quality piouucts. Puichases fiom specialist stoies aie not consiueieu
ioutine puichases anu they offei pleasant expeiiences when shopping.
Consumeis consiuei that piemium piouucts might be consiueieu woith
the piice because of the pleasant shopping expeiience as a whole.

The Fiench consumei is faceu with the eviuence of that choices of lifestyle
anu consumption have enviionmental consequences; many consumeis aie
willing to pay to go gieen. The consumeis that woulu buy eco-piouucts
usually have highei than aveiage income anu exhibit stiong loyalty
towaius bianus. A suivey fiom 2uu7 says that 9S% if the Fiench ageu 2u
yeais anu above caie about the enviionmental issues. Back then only 9%
wheie ieauy to actually pay foi the eco-fiienuly piouucts but the situation
has changeu anu this movement is influential on the consumei behavioui.
It is implicit that uemanu foi gieen piouucts is expecteu to have a

6S
significantly giowth in the futuie. The focus in eco-fiienuly fashion is moie
obvious in the sectoi foi textiles anu clothing. The tienu touay is moieovei
towaius behavioui anu the companies shoulu conuuct business with
ethics.

Seveial iepoits inuicate incieaseu focus on health, spoits anu outuooi
activities, (ually, 2u12). In consequence, we can assume moie people
tiavel to the mountains foi extieme spoits activities. Theie is an
incieasing peicentage of women with highei euucation that take bettei
paiu jobs anu this inciease theii puichasing powei.
(http:www.pewsocialtienus.oig).
Likewise, impioveu householu puichasing powei also incieases the
possibilities foi leisuie anu outuooi activities. Noie than 12u million
touiists aie visiting the Fiench Alps eveiy yeai anu we can assume that
this incieases chances of finuing FC segment in the Region of Rhne Alpes.
(Baniels, 2uu9).

Sales thiough Inteinet continueu to iise in Fiance in 2u11 (Euiomonitoi
Inteinational, 2u12). The numbei of online consumeis, as well as the
aveiage amount of money they spent online foi each puichase incieases
eveiy yeai. Consumeis can easily compaie piices anu quality between
piouucts uue to the many web siues. The tienus among the Fiench
consumei habits inuicate that moie will buy goous fiom the Inteinet in the
futuie as they have busy lifestyles anu it is moie convenient to uo the
shopping at home.

/M0 A I$%C23:3=(%,:5

Noie efficient piouuction anu uistiibution systems aie in favoui of FC if
they expoit theii piouucts. Easiei tianspoitation of piouucts to ietail
stoies will save money anu time foi the company. Nowauays, it is easiei
foi people to tiavel aiounu the woilu uue to the ueveloping technology.
This has a positive effect on touiism. (Nouen, 2u12)

66

/M0D "2)(-32+$2',:5

The Stein Review assume that the global aveiage tempeiatuie will
inciease with 2 - S C The next Su yeais. The iesult is that we face shoitei
winteis anu that the sales foi wintei anu outuooi clothing can ueciease. In
Noiway, the ietaileis have alieauy seen the effects anu will have an impact
in the futuie on the sales in the Alps. Emissions have been, anu continue to
be, uiiven by economic giowth; yet stabilisation of gieenhouse-gas
concentiations in the atmospheie has been steauy with the giowth (Stein
ieview, 2uu8) The infoimation anu awaieness of the C02 emissions
shoulu now be implementeu in companies sustainability piogiams anu is a
pait of theii social cultuial iesponsibility. We have alieauy uiscusseu how
consumeis also inciease theii uemanu aftei eco-fiienuly piouucts.

/M0F ?$=,:5

Tiauemaiks aie well piotecteu unuei Fiench uue to the luxuiies bianus
anu laige fashion inuustiy in the countiy (www.fienchlaw.com). FC must
be awaie of the auveitisement anu laws foi commeicial in Fiance.: any
auveitisement oi piomotion campaigns must be wiitten in Fiench.
(Schaffei, Agusti, Bhooge, Eaile, 2uu9)












67
//0 B(%-3P$2)(-32+$2'

//0/ N3-'$-* 9()$ 93-%$*

"Poitei's five foices" iecommenu that one shoulu analyse the inuustiy
attiactiveness in teims of five competitive foices; the powei of supplieis,
the thieat of substitutes, the powei of buyeis, anu the thieat of potential
entiance, competitive iivaliy .The total sum fiom the fiist foui factois
concluue the uegiee of the fifth foice; competitive iivaliy, (}ohnson,
Whittington, Scholes, 2uu8). Appenuix S.2.


//0/0/ N3@$- 39 *&88:($-*5
Theie is many supplieis in the textile inuustiy anu especially in the
faieast; Entitleu the "woilu factoiy" (www.uegiee-essays.comessays). In
piinciple, theie is veiy little uiffeientiation among supplieis of fabiics anu
mateiials. The cost of changing to othei supplieis is low anu this inuicates
whom that have the gieatest powei in this ielation. In light of these facts,
we consiuei the baigaining powei of supplieis as L0W.


//0/06 IC-$,' 39 *&;*'('&'$*5
We assume that thieat of substitute piouucts foi the clothing inuustiy is
moie oi less non-existent. This can be aigueu by the fact that theie is no
substitute foi eaiing clothes anu in a mainstieam society; all the
customeis buy clothes fiom somewheie. 0n the othei hanu, because we uo
not consiuei that theie aie any substitutes; the competitive iivaliy anu
competition foi consumeis buying clothes is even moie intense. Thus
thieat of substitutes is L0WN0N-EXISTENT (http:www.wikinvest.com)





68
//0/0> N3@$- 39 ;&.$-*5
The cost of switching companies is moie oi less non existent anu as simple
as a customei can walk fiom one stoie to anothei. Nost impoitantly,
consumeis uo not see the high-enu clothing as an essential commouity.
This means that if one competitoi iaises theii piices, the customeis can go
anu finu the option that is moie affoiuable. In this inuustiy, the companies
iely on continuous sales, anu FC loose customeis to a competitoi it woulu
be uisauvantageous to FC. Bianu loyalty anu awaieness is extiemely
impoitant to keep the customeis inteiest. In conclusion; the costumei's
baigaining powei is BIuB (}ohnson, Whittington, Scholes, 2u11)
(http:www.wikinvest.com)

//0/0A IC-$,' 39 2$@ $2'-,2%$5
In the clothing inuustiy it is uifficult to chaiacteiize the uegiee of patents
iegulation of maikets anu we assume that it is not uifficult to entiy the
maiket foi othei piouuceis. Neveitheless; if we uistinguish between
uiffeient types of maikets anu focus on the niche maiket; it is uifficult to
entiy a maiket wheie companies positioning themselves with focuseu
uiffeientiation. In uespite of this it is uifficult to gain a laige maiket shaie
anu the thieat of entiy is significantly highei among the small companies.
We consiuei the thieat of new entiy as BIuB. (}ohnson, Whittington,
Scholes, 2u11).

//0/0D 73+8$'('()$ -(),:-.5
Competitive iivals aie those oiganisations with similai piouucts anu
seivices aimeu at the same customei gioup (}ohnson, Whittington, Scholes,
2u11). The foui pievious foices impose that theie is a significant uegiee of
competitive iivaliy between companies in the clothing inuustiy. Because
of what we have uiscusseu, the fact that the maiket is fiagmenteu anu that
many companies aie of equal sizes; the competitive iivaliy is consiueieu
to be BIuB.



69

//06 K'-,'$=(% =-3&8 ,2,:.*(* O %3+8$'('3-*

//060/ 12'-34&%'(32
Competitive iivals aie those oiganizations that offei similai piouucts oi
seivices anu taiget similai customei gioups. When the competitois aie
moie of an equal size - theie is a uangei of moie intense competition
because one competitoi will always attempt to gain uominance ovei the
otheis. 0n the othei siue, the inuustiies that aie competitive usually have
one oi two moie oi less uominant oiganizations wheieas the small playeis
challenge them uiiectly. By this means that they focus moie on
uiffeientiation to avoiu the attention fiom the moie uominate
companies.(}ohnson, Whittington, Scholes, 2u11)

//0606 K%38$
We will biiefly piesent the laigest companies that uominate the maiket
anu imply uiiect anu inuiiect competition foi FC. The focus shoulu be on
competitois that also focus on uiffeientiation oi the niche maiket anu
challenge FC cuiiently position uiiectly .The competitois aie seen in the
light of theii segments, theii piouucts, piice anu theii position on the
inteinational maiket.

//060> R3--g2,
Noiina was the fiist company that useu uoie-Tex in 1977.
(www.noiiona.com) The piouuct poitfolio is laige with uiveisity anu
maue foi all levels of ambitions, activities anu weathei conuitions. The
philosophy behinu the uesign is; Loaueu minimalism". Fantastic piouucts,
maue as simple as possible with ciitical uetails. The piouucts inuiiect
competition with FC is theii "Lyngen"-collection with uown jackets, "29"
- with clothing foi an active lifestyle anu "Falketing" with jackets foi
lightweight mountaineeiing. The quality is innovative anu they focus on
light-weighteu piouucts with high quality in biight colois. The piice foi
the uown jacket is touay 2999 N0K anu not as expensive as Fleischei

7u
Coutuie. Noiina uistiibute thiough 4uu stoies in 17 countiies anu theii
home page on the Inteinet. This incluues the Fiench maiket anu the
Rhne- Alps. Noiina taiget a laige segment anu sell piouucts to active
men anu women in all ages with a uemanu aftei functional, quality anu
innovative piouucts.

//060A U$-=,2*
Beigans piouuce with the goal of ieaching new uistances, anu ensuie that
theii piouucts keep theii piomises on the way to new challenges.
(www.beigans.no) Inspiieu by exploieis anu the Noiwegian heiitage, they
coopeiate with the iegulai hikei anu the spoity people, anu use this as an
impoitant iole in the uevelopment of piouucts anu theii image. Beigans
piouucts in uiiect competition with FC is the Bown anu Beat Insulating-
categoiy. In this categoiy they have insulation anu heat enhancing
gaiments. They aie eithei filleu with uown of the highest quality oi
pauueu with lightweight polyestei. Bigh quality to a ieasonable piice,
fiom aiounu 2uuu,- N0K. Beigans uistiibute piouucts in in 21 countiies
thioughout the woilu, Fiance anu Rhne Alpes incluueu, anu Inteinet
uistiibution. Theii main segments aie men, women, chiluien anu youth in
all ages with an active lifestyle.


//060D IC$ R3-'C Q,%$
The Noith Face was establisheu in 1966 in San Fiancisco.
(www.thenoithface.com) Touay they aie one of the laigest supplieis in the
woilu in this inuustiy. Theii mantia is Nevei Stop Exploiing". The Noith
Face pioclaims that they aie fiist choice of some of the woilus most
accomplisheu climbeis, iunneis, snowboaiueis anu skieis. Theii clothing
anu equipment lines aie baseu upon the wilueiness chic teim anu they
want to cieate clothing foi customeis that face uiffeient challenges in life.
Technical anu Innovative inspiieu by piofessionals. Biight colois, laige
piouuct - line, specializeu in outeiweai, fleece, coats, shiits anu othei
equipment. Bigh quality anu focus on both biight colois as well as classical

71
black anu white. Piouucts aie in the same piice iange as Fleishei coutuie
anu they can compete with theii jackets anu base layei. Solu thiough
Inteinet, ietaileis anu outlets thioughout thiee uiffeient continents.
Fiance anu Rhne Alps. The Noith Face is touay a well-known bianu
among youth anu active people, both women anu men in all ages.

//060F N$,< N$-93-+,2%$
Peak Peifoimance was establisheu 1986 in Sweuen by thiee talenteu
skieis that cieateu a bianu combining function with simple, attiactive anu
classic uesign. (www.peakpeifoimance.com) Touay they aie iepiesenteu
in many countiies anu enjoy a goou ieputation. The founuation of the
bianu is theii love of natuie anu goou uesign. The main piouucts in
competition with FC aie the Peak Peifoimance collection with new fabiic
technology, uesigneu with innovative featuies foi activities anu an
enviionment that uemanu ieliable piouucts. They aie uetaileu, maue foi
tiaining, skiing anu uiban living. The focus is moie on the classic, casual
anu spoity uesign iathei than fashion. The wintei coats aie in the same
piice iange as FC but mostly not as expensive. Peak Peifoimance
uistiibutes clothes in 1S uiffeient countiies wheie Fiance, anu the Rone
Alpes is iepiesenteu anu on the Inteinet. Theii taiget gioup is Nen,
Women fiom the age of 18-SS anu chiluien. The customei piofile is active,
classic anu uiban anu buys the clothes because it is attiactive anu not to
flashy.

//060H Z,-( I-,,
Kaii Tiaa is an 0lympic Champion in fieestyle with thiee 0lympic Neuals.
(www.kaiitiaa.no) The piouuct poitfolio is inspiieu by vigoious
Noiwegian uesign. The style is feminine anu meet iequiiements foi an
active, spoity anu auventuious lifestyle. Kaii Tiaa says that hei collection
is suitable foi both "lauies" anu outuooi people. The main piouucts in
uiiect competition with FC is hei base layei collection, hei hats anu the
hoous in coloiful uesign. The piices of the piouucts aie in the same piice-
iange as FC base layei anu hat collection. Kaii Tiaa uistiibute thiough 11

72
countiies, Fiance anu Rhne Alpes Incluueu anu on Inteinet. The main
segment is women anu giils fiom 18-SS with an active lifestyle anu
uemanus a feminine touch combineu with uiban uesign.

//060J e(:4$ G3*$*
Wilu Roses pioviues a clothing iange uesigneu exclusively foi active
women anu pioviue skiing- anu hiking-fiienuly appaiel that combines
functionality anu feminine appeal. (www.wiluioses.it) They uesign
clothing exclusively foi active women. The life of women is not always
about ieaching the highest mountains; it is about passion anu to things foi
othei self-actualization. Wilu Roses piesents two piouuct lines pei yeai;
jackets anu othei clothing foi spoits anu activity; one summei collection
anu a wintei collection. The collections aie limiteu anu appiox. 1uu pieces
each. Italian uesign manufactuieu in Euiope. Focus on top quality high-
tech mateiials with mouein functional chaiacteiistics. The piice is faiily
high anu in the same extent as FC piouucts. Wilu Roses uistiibute
piouucts in moie than 14 countiies anu they have a well-uevelopeu
piofessional netwoik. Wilu ioses piesent themselves as a piemium bianu
anu taiget women in close touch with the natuie. The segment is those
women between 18-4u who piefei to move outuoois anu passionately
woik on theii uieam.

//060L K@$$' 8-3'$%'(32
This Noiwegian company was set-up by a gioup of snowboaiueis in 2uuu
with coopeiation fiom the woilu known snowboaiuei Teije Bkonsen.
Touay they piouuce appaiel, technical clothing, helmets anu equipment
foi mountaineeiing, skateboaiuing anu the active lifestyle. Inspiieu by the
mountain in Noiway, the Califoinian suifing cultuie, skateboaiuing anu
cultivating chiluhoou activities as an auult. They piouuce high quality
piouucts with technical uetails anu biight colois. 0ne of theii main
piouucts that can compete with FC is "The Resolution Seiies". The clothes
aie of high quality piouuction anu in the same piice-iange as FC piouucts.
Bistiibution of the piouucts is touay in 16 uiffeient nations, Fiance anu

7S
Rhne Alpes incluueu. They also have uistiibution thiough uiffeient
online - ietaileis. Nainly to the action spoits maiket, this is a subcultuie
with a giowing populaiity among youth anu young auults in the woilu.
They sell clothing to both men anu women within the same segment as FC.

e$ C,)$ 8:,%$4 'C$ *'-,'$=(% =-3&8 ,2,:.*(* (2 '@3 4(99$-$2' $#C(;('*h




)'O0-+ DS^V N%-$%+O', \-/04 65$*F('(

The fiist exhibit illustiates how many maikets the companies covei
geogiaphically anu theii uiveisification. By uiveisification means how big
theii piouuct-line is anu whethei they focus moie on uiveisification oi
uiffeientiation anu the niche maiket.
D
i
v
e
r
s
i

c
a
t
i
o
n
H
i
g
h
High
L
o
w
Low Extent of geographical coverage
Fleischer
Couture
Wild Roses
Sweet
Protection
Bergaans
Norrna
Peek Performance North Face
Kari Traa

74

)'O0-+ DS_V N%-$%+O', \-/04 65$*F('(
The seconu exhibit illustiateu how many maiket segments the uiffeient
competitois seive at the woilu maiket; anu to what extent they piofile
theii bianus as high quality with a piemium piice.

//0> 732%:&*()$ -$+,-<*

It is obvious that Wilu Roses anu Kaii Tiaa taiget the same segment
because they cieate clothes foi women only. Wilu Roses have placeu
themselves within the same piouuct, quality anu piice-iange. Sweet
Piotection also taigets the same segment with iegaiu to age anu quality.
The competitois have an auvantage touay as they have expanueu
geogiaphically anu thiough uistiibution on the Inteinet. The biggest
competitois anu the laigest playeis on the woilu maiket aie uefinitely The
Noith Face, Peak Peifoimance, Beigans anu Noiina. Though, they taiget
moie segments anu uo not have a focuseu uiffeientiation stiategy as FC
have touay. It is woith mentioning that all the competitois have at least
two uiffeient collections each yeai; one foi each season.



P
r
i
c
e
/
q
u
a
l
i
t
y
/
i
m
a
g
e
H
i
g
h
High
L
o
w
Low Number of market segments served
Fleischer
Couture
Sweet
Protection
Wild Roses
Kari Traa
Bergaans
Norrna
Peek Performance
North Face

7S
/60 Q(2,2%(,: G(*<*

Naiketing in foieign countiies leaus the company in to new anu unknown
situations (Solbeig, 2u1u). Noieovei, the company meet unceitainty of
expoitation. Theie aie uiffeient types of iisks anu the most impoitant foi
FC is the financial iisk anu can be uiviueu into thiee sub categoiies.
(Solbeig, 2u1u).

./22+-,'$* -'(3(V The cieuit woithiness of customeis. Customei stiuctuie
anu payment conuitions aie uepenuent on this.

]/*'%',$* -'(3(V Economical anu political uecisions affecting impoit, anu the
political situation in the countiy. Both can pievent payment fiom impoit
countiy to expoit countiy.

@,/5/2',$* -'(3(V Possibility foi changeu conuitions foi the expoiteis
calculations, iesulting in lowei, as well as highei piofits. Fluctuations in
exchange iates. Changing inteiest iates anu the uiscount level oi changes
in piices.

Foi FC as a small expoitei the most essential will be the customei
geneiation of piofit anu the commeicial iisk aspect. Theie is uiffeient
ways of ieuucing the commeicial iisk (Solbeig, 2u1u):

Spieau the sales on a bioauei customei base,
Spieau iisk on moie paits of the value chain
Cieating payment conuitions anu cieuit assessmentS

If the exchange iate between the Euio anu Noiwegian kioneis changes
uiamatically, this will have a significant impact on FC's sales. A
uevaluation of the Euio means that the piouucts will be moie expensive
on the Fiench maiket; anu weakens FC competition capability.


76
Noieovei, theie is the tianspoitation iisk anu iisk of piouuct
iesponsibility (Solbeig, 2u1u). "#/ #$( %#+ -+(4/5('J'*'%F 'I %#+ 4-/=0,%(
O+% */(% /- =$2$O+= J+I/-+ I'5$* =+(%'5$%'/57 It is suggesteu that unuei an
inteinational agieement a choice of law clause shoulu be implementeu in
the contiact anu FC must cieate uocument collection agieements with the
uomestic anu the buyeis bank if they choose tianspoitation thiough a S
iu

paity. (Schaffei , Beveily, 2u12) Finally; the iisk of piiacy is huge in
fashion (newyoikei.com). This can uamage the ievenues anu FC
ieputation. A stiong piotection of theii name anu symbols shoulu me
maue unuei inteinational laws of patents anu tiauemaiks.

/>0 IC$ Q-$2%C %&:'&-,: 4(+$2*(32*

Cultuie is about what that is taken foi gianteu anu it contiibute to how
uiffeient gioups iesponu anu how they behave. Bence it is impoitant to
uistinguish the uiffeiences between Fiench anu Noiwegian cultuie anu the
impact this will have on the stiategy. The cultuial influences exist at
multiple levels anu we will iuentify the uiffeience in the business
enviionment. (Pientice Ball, Exploiing Cooipoiate stiategy: p 196)

Theie aie ceitain aspects in the Fiench business enviionment FC shoulu
be awaie of; ueeit Bofsteue is a Butch piofessoi that has stuuieu how the
cultuial uimensions influence ceitain stanuaius in the business
enviionment. Noieovei, he have collecteu a laige uataset within a
multinational company calleu IBN ovei an six yeais peiiou fiom 1967 to
197S anu incluues ovei 7u nations he have categoiizeu in a five uimension
mouel with the following uimensions; The Powei Bistance Inuex,
Inuiviuualism, Nasculinity, 0nceitainty Avoiuance anu Long Teim
0iientation. (http:geeit-hofsteue.com)



77
/>0/ IC$ Q()$P4(+$2*(32 +34$:

)'O0-+ DS`V G#+ I';+ U ='2+5('/5 2/=+*
/>0/06 IC$ N3@$- Y(*',2%$ 124$# P NY1
This uimension expiess that inuiviuuals in societies aie unequal anu how
this change oui attituues. Powei uistance is uefineu as !G#+ +W%+5% %/ L#',#
%#+ *+(( 4/L+-I0* 2+2J+-( /I '5(%'%0%'/5( $5= /-O$5'Z$%'/5( L'%#'5 $
,/05%-F +W4+,% $5= $,,+4% %#$% 4/L+- '( ='(%-'J0%+= 05+a0$**F8S Fiance
scoie quite high on the scale of the PBI anu Fiance is a society wheie
inequality is highly accepteu. Fiance is one of the most hieiaichical
countiies in the woilu. The powei is centializeu, the attituue towaius
management is foimal anu the flow of infoimation is hieiaichical.
Infoimation is contiolleu anu associateu with powei. Noiway scoie S1 on
this uimension anu exemplify that Noiwegians aie moie inuepenuent,
hieiaichy is foi convenience only, anu they value equal iights. The powei
is uecentializeu anu contiol is uislikeu. The communication is moie uiiect,
paiticipative anu baseu on consensus.

78
/>0/0> 124()(4&,:(*+ P 1Y^
This uimension auuiesses the !M+O-++ /I '5%+-=+4+5=+5,+ $ (/,'+%F
2$'5%$'5 $2/5O '%( 2+2J+-(S The uimension measuies how inuiviuualistic
the society is - oi whethei they aie collectivistic; wheie one belong moie
to a gioup that take caie of them in exchange foi moie loyalty. Fiance
scoie with 71 on the inuiviuualistic inuex anu explain that they aie highly
inuiviuualistic anu favoi inuiviuual anu piivate opinions. Likewise, they
take caie of themselves anu the closest family iathei than a gioup. In the
business enviionment this means that woik is baseu upon contiacts, task-
oiienteu anu autonomy is favoieu. They communicate quite uiiect anu
voice out opinions to otheis. Nanagement is the management of the
people as inuiviuuals anu it is expecteu to ieceive iecognition of ones
woiks. Noiway scoie 69 anu they aie quite similai to Fiance. Theie is a
cleai line between the piivate life anu woik anu business ielationships aie
contiactual.
/>0/0A B,*%&:(2('. i Q$+(2(2('. - BK^
If one scoies high on this; it inuicate that the society in the countiy is
uiiven by masculinity, competition, achievement, success anu suivival of
the fittest. 0n the othei siue; a low scoie means that the society is moie
feminine anu that the values in the society is uominateu by caie foi otheis
anu that quality of life shoulu be in accoiu with success. The funuamental
in this uimension is what motivates the inuiviuuals in the society. Fiance
scoie 4S; they aie ielatively feminine with a caie foi life quality anu the
focus on woik is puiely to live. The mateiial signs of success shoulu not be
highly visible anu value suppoitive management. Noiway scoie 8 on this
inuex anu is one of the most feminine societies in the woilu. Soliuaiity,
fiee time anu flexibility is impoitant anu the focus is moie on well-being,
self uevelopment, iathei than status.


79
/>0/0D \2%$-',(2'. ,)3(4,2%$ P \E1
This uimensions measuies !G#+ +W%+5% %/ L#',# %#+ 2+2J+-( /I $ ,0*%0-+
I++* %#-+$%+5+= JF $2J'O0/0( /- 0535/L5 ('%0$%'/5 $5= L#+%#+- %#+ J+*'+I(
$5= '5(%'%0%'/5( $-+ ,-+$%+= %/ $;/'= %#+(+S8 It is to what extent a society
ueals with the unknown futuie anu anxiety. Fiance scoie 86 on this inuex
anu is one of the countiies with the highest scoie. They favoi ceitainty anu
ieach this thiough a concept that iesponu foi neeu of uetails, backgiounus
anu context. They have ceitain iules anu secuiity to avoiu stiess anu
planning is veiy impoitant. Noiway is a piagmatic cultuie with a scoie Su
on this inuex. Theie is a neeu foi both geneialists anu expeits. People aie
moie oi less ielaxeu anu not aveise to taking iisks.
/>0/0F ?32=P '$-+ 3-($2','(32 - LT0

This uimension is; !G#+ +W%+5% %/ L#',# $ (/,'+%F (#/L( $ 4-$O2$%', I0%0-+U
/-'+5%+= 4+-(4+,%';+ -$%#+- %#$5 $ ,/5;+5%'/5$* #'(%/-',$* (#/-%U%+-2 4/'5%
/I ;'+L8S Fiance scoie S9 on the inuex anu theiefoie is a shoit-teim
oiienteu society. Fiance values tiauitions, noims, viitue anu tiuth as
guiuelines. In business this means that they focus on quick iesults, the
social tienus anu iituals uiive consumption in the society. Noiway scoie
44 anu is like Fiance a shoit-teim oiienteu cultuie.

/>0/0H 732%:&*()$ -$+,-<*
When FC expanus to Fiance, they shoulu know that the Fiench business
enviionment involves foimality, use of titles anu last names. Theie is a
high powei uistance anu in business negotiations, they aie both ueal anu
ielationship-oiienteu; hence the impoitance to talk about cultuie such as
ait anu heiitage. They favoi ceitainty anu ieach this thiough a concept
that iesponu foi the neeu of uetails, backgiounus anu context. Noieovei
Fiench like uebate, elegant phiasing anu ielish uiscussions. 0ne shoulu
follow the noims anu iules that exist anu be awaie of that one neeu to go
to the management oi those with authoiity to gain infoimation anu be
awaie of the impoitance of contiacts anu consensus.

8u

/A0 "#'$-2,: ,2,:.*(* *&++,-.
We have analyseu the macio enviionment with the PESTEL fiamewoik
anu the micio - enviionment, oi the inuustiy with Nichael Poitei's five
foices. This has given a bettei unueistanuing of the inuustiy anu the
powei of the enviionmental foices.

The ieview of the inuustiy globalization inuicateu that the fashion
inuustiy is globalizeu thiough easiei communication, tianspoit anu
technology. 0utsouicing of piouuction anu tiaue libeialization has maue
expoit easiei. Customeis look ovei boaiueis when they seek new tienus
anu all of these foices cieate oppoitunities foi FC.

The stiategic gioup imply that companies such as The Noith Face,
Beigaans, Peak Peifoimance anu Noiina aie companies with a high
maiket shaie anu high piouuct uiveisification. Finally; the closest uiiect
competitois in Fiance foi FC aie Sweet Piotection, Kaii Tiaa anu most
significantly the Italian bianu, Wilu Roses who taiget the same segment
anu have positioneu themselves on similai levels within the maiketing
mix.












81


KIGEI"[X

82

/D0 K'-,'$=.

/D0 / KeWI
The SW0T fiamewoik compiises the most impoitant finuings fiom oui
inteinal anu exteinal analysis in foui uiffeient uimensions; (%-+5O%#(?
L+$35+((+(? /44/-%05'%'+( anu %#-+$%(, (}ohnson, Whittington, Scholes,
2uu8) This is helpful to cieate a stiong backgiounu foi a stiategy anu an
entiy moue foi Fleischei Coutuie.

/D0/06 K'-$2='C*
FC is a small company with two owneis anu they have stiong contiol ovei
the business opeiations anu the value chain.

Theii close ielationship miiiois the cultuie anu they have a common
vision anu goals foi the heauing business uiiections.

The company have stiategic iesouices fiom knowleuge in the maiketing
anu uesign uiscipline. Thus, this is an auvantage foi futuie uesign,
maiketing, sales anu economics.

The company Image is cleai anu embouy the maiketing aspect. Likewise
have the choice of communication channels been selective anu they have
moveu towaius a focuseu uiffeientiation moue.

The piouuct poitfolio can easily follow the maiket tienus because the
company is small anu infoimation fiom the maiket channels iathei fast
thiough the value chain activities.

FC founu theii niche in the maiket anu they have the stiategic capability to
positioning themselves with uiffeientiation in a fiagmenteu maiket
stiuctuie with high competitive iivaliy.

8S

/D0/0> e$,<2$**$*
Theie aie limiteu iesouices of capital anu FC is sensitive foi the financial
aspect in the value chain.

The piouuction is outsouiceu anu FC is sensitive to coiiect piouuction. If
any eiiois occui they uo not have the possibility to pievent this anu might
loose sale fiom jackets that cannot be solu.

FC might not have the possibility to check if all the ietaileis aie cieuit
woithy.

Ceitain aspects of the activities anu the opeiations might be neglecteu
because FC manages the majoiity of the value chain.

FC uoes not have any coie competence anu they aie foiceu to continuously
pay attention on the competitive iivaliy.

FC has no knowleuge of inteinational business.

/D0A W883-'&2('($*
The incieaseu focus on the enviionmental issues cieates a oppoitunity foi
FC to piouuce innovative piouucts anu inciease sales at a maiket with
uemanu aftei eco-fiienuly piouucts.

The company shoulu seek Investment oppoitunities anu enlaigement of
piouuct-poitfolio.

The Fiench goveinment focus laigely on uomestic touiism anu FC can take
auvantage of theii stiategies.


84
Fiench consumeis puichase moie goous fiom Inteinet ietaileis, thus this
cieates an oppoitunity foi FC to taiget Fiench consumeis fiom an online-
uistiibution.

ulobalization anu tiaue among nations aie giowing iapiuly; hence the
clothing inuustiy anu tienus is a mannei of inteinationalization foices anu
cieate maiket possibilities in Fiance foi a Noiwegian company.

The piouuct poitfolio has huge potential.

The Euiopean 0nion anu the Foui Fieeuoms piinciple simplify tiauing
among the membei countiies anu EEC membeis - this easy the entiy
moue foi FC to the Fiench maiket.

/D0D IC-$,'*
Theie aie many competitois at the maiket anu the iivaliy is high, thus it is
uifficult to gain sustainable maiket shaie.

The iecession in Euiope cieates unceitainty anu the ueciease in piouuct
puichase powei makes it uifficult to pieuict a uefinite outcome of expoit
to Fiance.

The exchange iates can fluctuate anu FC may lose competitive stiength if
the E0R0 uevaluate against the N0K as it will be moie expensive to buy
the piouucts.

The cultuial uiffeiences can cieate challenges anu misunueistanuings anu
FC must be piepaieu to cope with those challenges.

The goveinmental foices, buieauciacy anu iegulations might cause
pioblems foi a small company anu one neeu to collect enough infoimation
of the uiffeiences.


8S

/D0F 732%:&*()$ -$+,-<*
It is obvious that Fleischei Coutuie has inteinal stiengths to cope with the
weaknesses anu thieats to cieate applicable oppoitunities at the Fiench
maiket. In conclusion, an inteipietation the weaknesses anu thieats must
be consiueieu when we suggest an entiy stiategy so FC can cieate
sustainable maiket oppoitunities. The SW0T mouel is illustiateu in
appenuix 6.1.


/F0 K'-,'$=(% N-3;:$+ 4$9(2('(32

The following pait of this iepoit compiehenus an intiouuction to a global
stiategy foi FC anu entiy moue suggestions. The fiist anu most impoitant
featuie of a stiategy is the stiategic pioblem uefinition composeu by
finuings fiom the SW0T-fiamewoik.

!A/L ,$5 ). 0(+ %#+'- (%-$%+O', ,$4$J'*'%'+( %/ ,/4+ L'%# %#+'- L+$35+((+( '5
/-=+- %/ ='II+-+5%'$%+ %#+2(+*;+( $5= ,-+$%+ 2$-3+% /44/-%05'%'+( $% %#+
)-+5,# 2$-3+%78

/F0/ K'-,'$=(% +,-<$'(2= =3,:*

The basic piepaiation befoie an expansion is the cieation of cleai stiategic
goals. !65 +II+,%';+ 2'(('/5 (%$%+2+5% (#/0*= ,*+$-*F $-%',0*$%+
/-O$5'Z$%'/5$* O/$*( (0,# $( O-/L%#? 4-/I'%$J'*'%F? (%$J'*'%F? /- (0-;';$*?
(%$%+= '5 (%-$%+O', (+5(+8 (}ones & Bailett Leaining). The objectives have
been uiviueu into shoit-teim goals anu long-teim goals. Shoit-teim goals
aie those FC shoulu meet befoie expansion. Seconuly the long-teim goals
shoulu FC mainly achieve at the Fiench maiket within the next S yeais.



86
/F06 KC3-' O '$-+ =3,:*

The shoit - teim goals aie influenceu with the infoimation fiom the SW0T
fiamewoik anu aie the following;
Cieate investment oppoitunities anu attiact investois
Incieaseu maiket-activities anu piomotion campaigns to attiact
new customeis anu cieate gieatei bianu awaieness.
Collect infoimation anu know-how of the inteinational clothing
inuustiy anu inteinational business
Expect incieaseu sales ievenues with 2u%

/F0> ?32= O '$-+ =3,:* (2 $#8,2*(32

The long - teim goals aie influenceu by the exteinal enviionment in
Fiance:

Naiket-activities; Aggiessive piomotion campaign anu bianuing
ueneiate positive total tuinovei piofit in Fiance within the fiist
thiee yeais of expoitation
Incieaseu sales with 2S% annually fiist S yeais
Cieate a stiong netwoik anu maiket know-how within the fiist 2
yeais
Expanu the piouuct-poitfolio with accessoiies such as bags anu
key-stiings
Launch a summei collection in the uomestic iefeience maiket anu
eventually expoit the piouucts to Fiance







87
/F0A 7-('(%,: K&%%$** Q,%'3-*

!G#+ ,-'%',$* (0,,+(( I$,%/-( $-+ %#+ +((+5%'$* $-+$( /I $,%';'%F %#$% 20(% J+
4+-I/-2+= L+** 'I F/0 $-+ %/ $,#'+;+ %#+ 2'(('/5? /JY+,%';+( /- O/$*( I/- F/0-
J0('5+(( 4-/Y+,% ! (minutools.com).
The iuentification of ciitical success factois can help FC geneiate a bettei
chance of success anu we founu the ciitical success factois to be the
following:
FC must uiffeientiate themselves fiom competitois with innovative
uesign.
Effective uistiibution chain with contiol ovei all the ciitical uetails
Tiust-woithy paitneis anu a goou netwoik in Fiance
Naiket oiienteu management
Cultuial unueistanuing anu ielationship oiientation
Naiket activities thiough communication channels


/H0 K'-,'$=(% ;&*(2$** &2('*

A stiategic business unit (SB0) is the pait of FC wheie theie is an exteinal
maiket foi theii piouucts that is uiffeient fiom othei SB0.(}ohnson,
Whittington, Scholes, 2uu8) Iuentification of the SB0s eases by the
following ciiteiia can help as iuentify appiopiiate SB0s foi FC anu the
founuation of business level stiategies.

/H0/ B,-<$' ;,*$4 %-('$-(,0

FC offeis piouucts to one customei gioup. Bowevei, the uistiibution is
thiough significantly uiffeient uistiibution channels. FC ietail the piouucts
to consumeis thiough specializeu stoies anu sell uiiect thiough
uistiibutois on the Inteinet, hence this is uiffeient SB0s.


88


/H06 N-34&%'P;,*$4 %-('$-(,

The vaiiety in the piouuct-poitfolio is uiffeient SB0s. They uiffei fiom
each othei, as the piice-levels aie uiffeient. The ieasoning behinu the
piicing stiategy of each SB0 must be communicateu out to the customeis
uiffeiently. This means that one must justify the piices on theii jackets by
the extenueu piouuct featuies; anu why this is moie expensive than the
hats oi the base layei clothing. This is exemplifieu by the quality of the
piouuct anu that the jackets aie piouuceu in limiteu numbeis.

/H0> 7,8,;(:('($*P;,*$4 %-('$-(,0

The oiganization has the same similai stiategic capabilities, thus the
stiategic capabilities is the same SB0 as they manufactuie bianueu goou
fiom one business-unit to the same uistiibution channel anu enu-
customei taiget gioup.

/H0A [,+$ 'C$3-.

uame theoiy conceins the inteiuepenuent ielationship between
competitois, as one competitoi will be uepenuent on the next move oi
choices maue by the otheis. (}ohnson, Whittington, Scholes, 2uu8) The
assumption is maue to unueistanu the competitive uynamics in the teims
of this theoiy anu baseu on the following piinciple have guiueu oui
uevelopment of stiategies; Analyze the competitois, theii choices anu
theii stiategies so we can ueciue stiategy guiueu by the outcome of the
most impoitant competitois.




89

/H0D G$*8324(2= '3 %3+8$'('()$ 'C-$,'

Competitois taiget the same customeis, although on the basis of a
uiffeient competitive stiategy, the pieseivation of the competitive
auvantage can be unuei thieat. (}ohnson, Whittington, Scholes, 2u11) It
has been suggesteu uiffeient iesponus to the competitive thieats. We will
only uiscuss those that aie impoitant foi FC fiom oui finuings in the
competitoi analysis.

Fiist, FC shoulu focus on multiple bases of uiffeientiation. This will
emphasize theii benefits anu FC shoulu focus moie on uesign anu
innovation. Netwoiking, pieseivation of ielationships with ietaileis is
thus moie impoitant so they piesent FC piouucts piopeily in the stoies.

Seconuly, FC must ensuie a moie meaningful founuation of theii
uiffeientiation. The customei shoulu be able to uiscein a meaningful
benefit of the piouuct anu peisuaue customeis of the benefit of choosing
theii piouuct. FC shoulu highlight the value of the limiteu euitions each
yeai, the high quality anu the tienuy uesign to justify the high piemium
piice.

Thiiu, they must minimize the piice uiffeiences foi supeiioi piouucts anu
focus on less piice-sensitive maiket segments. Consequently the lowei-
piice alteinative is iegaiueu as less beneficial.

Finally, the uiffeient piouucts in the poitfolio shoulu be consiueieu as
sepaiate SB0s as the piouucts have a uiffeient piice piemium. Also, the
jackets aie moie expensive than the hats anu shoulu be maiketeu
uiffeiently.



9u

/H0F IC$ K'-,'$=. 7:3%<

The 'Stiategy Clock' is constiucteu by Cliff Bowman anu his stuuy of
competitive positions, appenuix 7.1 (}ohnson, Whittington, Scholes, 2u11)
In auuition to the vRI0 analysis anu Poiteis ueneiic Stiategies we
evaluateu FC competitive position with Bowman`s Competitive Stiategy
0ptions. The fiamewoik consiueis that competitive auvantage is closely
ielateu to cost oi uiffeientiation anu Bowman geneiateu eight stiategic
options. FC Is placeu among uiffeientiation anu focuseu uiffeientiation. In
othei woius; FC use uiffeientiation with a piice piemium to geneiate
competitive auvantage. The peiceiveu auueu value shoulu be is sufficient
to beai the piice piemium of the piouucts.

/H0H 732%:&*()$ -$+,-<*

FC uiffeientiates themselves fiom the stiongest competitois - theie is a
high level of competition anu they shoulu inciease the focus towaius; high
quality, technology anu fashion. The buyeis have a lot of choices anu the
switching cost to othei bianus is low. Neveitheless, with a stiong anu
establisheu name in the maiket, anu uemanu aftei the bianu, can exeit
powei ovei the buyei. Since a stiong bianu is a magnet anu FC is not well
known at the Fiench maiket - the buyei has stiong powei. Thus, FC must
face a bianuing challenge if they aim to succeeu at the Fiench Naiket.








91

/J0 R(2$ *'-,'$=(% @(243@*

The inuustiial stiuctuie anu inteinationalization capability suggests what
stiategy that shoulu be implementeu (Solbeig, 2uu9). Noieovei, in the
mouel 5'5+ (%-$%+O', L'5=/L( we can se what type of stiategy FC shoulu
obtain in theii expoit plans, appenuix 7.2

The inteinal analysis of FC saiu that they uo not have much knowleuge of
inteinational maiketing anu business. Besiues, the financial iesouices aie
only baseu on equity; anu FC inteinationalization ability is in consequence
low.

The inuustiial aspect of fashion will nevei become an absolute global
inuustiy; implicit uesciibeu in the liteiatuie; ! G#+ I$(#'/5 '5=0(%-F
%F4',$**F +2J/='+( $5F 4-/=0,%? (+-;',+ /- 2$-3+% L#+-+ %#+-+ '( $5 +*+2+5%
/I (%F*+ %#$% '( *'3+*F %/ J+ (#/-% *';+=? 'I 5/% ,/5(%$5%*F ,#$5O'5O L'%# %-+5=(
!9Chiistophei, Lawson, Peck, 2uu4). Neveitheless, fashion can be
uesciibeu as an inteinational inuustiy as companies piouuce anu sell
clothes among the uiffeient countiies in the woilu. Bence the inuustiy
globalization is at a meuium level in the Nine-winuow fiamewoik. In
consequence FC is positioneu in the winuow wheie one shoulu; (++3 5',#+(
'5 '5%+-5$%'/5$* 2$-3+%(S Also this is a conclusion in accoiu with pieviously
assumptions; FC woulu benefit fiom a stiategy with focuseu
uiffeientiation.







92

/L0 B34$ 39 "2'-.

A uistiibution channel can be uefineu as a component in the value chain
wheie the piouuct is solu to the enu-consumei. (Solbeig,2uu9) The
uistiibution channels at the maiket shoulu be evaluateu befoie the
selection of entiy moue. Bistiibution abioau with laige geogiaphical
uistances can cause pioblems. Likewise, the cultuial anu institution
baiiieis might geneiate uifficulties foi an expoitei. Bence, theie shoulu be
a connection between the company anu the maiket thioughout a suitable
uistiibution-system. The system shoulu ease the following issues:
Piomotion anu sale of piouucts on the maiket, tianspoitation, baiiieis,
taxes anu quotas when the piouucts pass the boiueis, the financial aspect,
payments, aftei-sale-seivices anu finally; subsiuise maiket tienu
infoimation. The main moues of entiy choices suggesteu by Solbeig aie;
Wholesalei, Impoitei, Agent, Sales office oi expoit without iepiesentation.
We will only focus on entiy moue suggestions tangible foi FC touay.

/L0/ "#83-' 'C-3&=C (+83-'$-

The positive of an entiy moue with expoit thiough an impoitei is the
possible ieuuction of financial iisk. The activities in the value chain will be
uispatcheu anu sepaiateu anu the impoitei can manage anu contiol
piimaiy activities such as piomotion, sales, savings in the maiket anu
outbounu tianspoitation. Thus, the impoitei has the financial
iesponsibility of maiketing activities anu sales. (Solbeig, 2uu9).
Neveitheless, an impoitei might have seveial bianus in theii piouuct
collection anu some maiket activities anu piomotion of FC might be
neglecteu in favoui of othei bianus. Likewise, the iequiiements of all
iights ieseiveu in the impoiteis countiy can cause uifficulties with iegaiu
to a bianuing, segmentation anu positioning in accoiu with FC stiategy.


9S

/L06 "#83-' 'C-3&=C ,=$2'

FC is a small company anu expoit thiough agency safeguaius contiol of
maiketing anu sales activities within the management. (Solbeig: 2uu9:
2S4) An agent shoulu piomote the sales anu pioviue maiket-oiientateu
feeuback to the FC heau office. (Solbeig 2uu9) The main benefit with this
stiategy is that an agent has maiket infoimation, goou netwoik anu
ielations with uiffeient uistiibution channels. Likewise, an agent is the
most affoiuable choice exempt fiom expoit without a iepiesentative. FC
can then appioach the ietaileis inuiiect, manage the financial aspects anu
paiticipate actively in maiketing activities.

The uisauvantage is howevei that agents live fiom piovision of sales anu
can think volume anu act with caielessness of what is most beneficial foi
FC. Consequentially, uue to inteinational agieements a piincipal-agent
contiact shoulu incluue a clause anu a choice of laws. If FC employs a
uepenuent agent in the host countiy, the goveinment might iequiie
subsiuy tax payment, as the laws of Foieign Biiect Investments will apply.
In conclusion; FC shoulu coopeiate with an inuepenuent agent in oiuei to
avoiu unnecessaiy costs.

/L0> "#83-' @('C3&' , -$8-$*$2','()$

The moue of entiy without a iepiesentative is beneficial foi FC because
they have contiol ovei all the activities without anu uo not iequiie
payments to othei iepiesentatives. (Solbeig, 2uu9) Noieovei, with uiiect
expoit, the management in FC can ieach the enu-consumei at the maiket,
access maiket infoimation anu incieaseu pioficiency. Besiues, FC can
taiget a fixeu segment anu implement the most beneficial maiketing mix
stiategy fiom own peispective. The ieseaich of }ohnson, Scholes anu
Whittington expiess how small - inexpeiienceu companies moie easily can

94
save costs entiy seveial foieign maikets with this stiategy anu taiget a
laigei gioup of customeis.

/L0A "2'-. *'-,'$=.

The capability FC has to uay with iegaiu to financial iesouices iequiie that
management maintain the contiol mechanism in the value chain.
Fuitheimoie, foi futuie stiategy piopositions we suggest that it is
impoitant foi FC to finu theii niche in the maiket anu uiffeientiate
themselves fiom theii competitois uue to high competitive iivaliy anu the
low switching cost foi consumeis. The impoitance of a goou positioning
anu contiol leaves no choice foi FC to coopeiate with an impoitei. Bence
FC shoulu entei Fiance with an Agent in which can pioviue buieauciatic
expeiience, cultuial knowleuge anu establisheu netwoik, appenuix 7.S. FC
maintains theii contiol ovei the value chain activities wheieas the agent
only paiticipates with piomotion, sales anu maiket activities. Nonetheless,
an agent shoulu act as the link between FC anu possible ietaileis at the
Fiench maiket.

In auuition, FC shoulu use the oppoitunities of the socio-cultuial tienus;
moie customeis puichase goous online, as this is convenient anu less time
consuming. This means that piomotion anu uistiibution activities thiough
an agent anu an online stoie inciease bianuing, communication anu easy
access to the piouucts.

We uiscoveieu in the inteinal anu exteinal analysis that it is impoitant foi
FC to move away fiom the question maik in the BCu-fiamewoik shoulu
attiact an investoi ovei time anu expanu theii piouuct-poitfolio.
Noieovei, FC shoulu uiffeientiate them anu ieach theii main taiget gioup
with help fiom the agents netwoik anu online uistiibution channels. It is
also suggesteu that FC can benefit fiom tianspoitation uiiectly fiom
piouuction plants to the ietail stoies in Fiance in oiuei to avoiu uouble
taxation. The agent ought to supeivise assuiance of piouuct quality anu

9S
that the piouuct is in accoiu with the minimum iequiiements. In
conclusion, this stiategy can seize those oppoitunities FC have touay anu
meet the ciitical success factoi

6M0 K$=+$2','(32S I,-=$'(2= ,24 N3*('(32(2=
A maiket segment is !$ O-/04 /I ,0(%/2+-( L'%# ('2'*$- 5++=( %#$% $-+
='II+-+5% I-/2 %#+ ,0(%/2+- 5++=( '5 /%#+- 4$-%( /I %#+ L#/*+ 2$-3+%8
(}ohnson, Whittington, Scholes, 2u11). The concept of segmentation
shoulu be implementeu on giounus of those specific customei neeus that
aie to be met by FC piouucts. Noieovei, the taigeteu maiket segment in
Fiance must be iuentifieu befoie we can uesign any paiticulai maiketing
mix foi the Fiench maiket. (Etzel, Walkei, Stanton, 2uu4).


6M0/ K$=+$2','(32

The customei neeus vaiy foi uiffeient ieasons, anu the segmentation
evolves fiom consumei buying behavioi anu what they value when they
puichase any goous. Thus, we will incluue the finuings fiom the exteinal
enviionment analysis anu maiket uynamics in oiuei to taiget the gioup
that geneiate piofits anu cieate maiket shaie oppoitunities. Besiues, FC
stiength anu theii competitive auvantage shoulu be attiactive within the
segment anu the specific gioup of customeis. (}ohnson, Whittington,
Scholes, 2u11)

Theie aie seveial uiffeient suggestions foi maiket segmentation FC can
apply in theii stiategy; unuiffeientiateu offei, uiffeientiateu offei, oi
concentiateu offei. (Kotlei anu Kellei,2uu6) The segmentation piocess in
Fiance uepenus on the maiket stiuctuie anu to what uegiee the segment
neeu inuiviuual auaptation. (Solbeig, 2uu9) By this means the uegiee of
piouuct auaptation, special communication anu uistiibution channels oi
uiffeientiateu piice-offeis.


96
Biffeientiateu maiketing is wiuely spieau among Noiwegian expoiteis
touay which means that the expoitei establish a niche in the maiket to
cope with competitive iivaliy. (Solbeig, 2uu9) Fuitheimoie, It has been
uiscouiseu how FC uiffeientiate themselves at the Noiwegian maiket; FC
focus on a specific a segment in the maiket with a uemanu foi custom-
maue uesign, a tienuy appeal foi an active anu uiban lifestyle. The benefit
of this stiategy is that FC can follow maiket tienus; specific customeis
neeus anu bianu loyalty.

Bianu awaieness is impoitant foi FC in a maiket wheie the piouucts anu
bianu is unknown; customei loyalty geneiates incieasing sales. In
consequence, theii choice of segment will ueteimine futuie piofit anu
maiket shaies. Thus, we have iuentifieu a segment FC shoulu appioach on
giounus of geogiaphical, uemogiaphical, pshycogiapical anu behaviouial
ciiteiia. (Etzen, Walkei, Stanton, 2uu4).

6M0/06 [$3=-,8C(%,: *$=+$2','(32
ueogiaphic segmentation means that one subuiviues a maiket in segments
by location ciiteiia; iegions, countiies, cities, anu towns wheie people live
anu woik (Etzen, Walkei, Stanton, 2uu4). Likewise we suggest that the
segment in Fiance is natuially placeu in the Rhne-Alps. The methouology
ieseaich conclusion implies that FC segment in Fiance aie active,
inteiesteu in outuoois activities anu that the specialist stoies in the Alps
geneiate sales potential. Nonetheless theie is also many touiists anu
stuuents in the suiiounuing aiea; hence both national anu inteinational
potential customeis with a neeu foi FC piouucts.


6M0/0> Y$+3=-,8C(% *$=+$2','(32
Examples of uemogiaphic segmentation aie age, genuei, family life - cycle,
income, anu euucation anu a usually incluueu in segmentation pioceuuies.
(Etzen, Walkei, Stanton, 2uu4). Fiom oui finuings we suggest that FC
shoulu taiget women fiom 2u-4u yeais wheieas the biggest maiket

97
potential is among women with fulltime job anu a ielatively goou income.
Neveitheless, stuuents might puichase FC piouucts uue to that the
peiceiveu value of wintei jackets is highei than othei casual eveiyuay
clothing.

6M0/0A N*.%C3=-,8C(% *$=+$2','(32
By psychogiaphic segmentation means those chaiacteiistics ielateu to
how a consumei thinks, feels, anu behave. (Etzen, Walkei, Stanton, 2uu4)
Noieovei, the featuies can be sepaiateu fuithei in to; peisonality, lifestyle
anu values. The FC woman in Fiance is conceineu by enviionmental issues
anu woulu pay moie foi innovative anu eco fiienuly piouucts. Likewise;
she is uiban anu pay attention towaius hei own appeaiance, thus fashion
anu tienu is just as impoitant as quality anu comfoit. We choose not to
focus moie on the peisonality chaiacteiistic, as it is uifficult to ieach a
gioup baseu on peisonality. (Etzen, Walkei, Stanton, 2uu4), Besiues, an
impoitant aspect of maiketing activities is to avoiu wasteu maiketing
effoit anu iesouices. (Etzen, Walkei, Stanton, 2uu4).

6M0/0D U$C,)(3&- *$=+$2','(32
The behavioui segmentation aie the most piouuct-ielateu. (Etzen, Walkei,
Stanton, 2uu4). The FC woman is innovative, a natuial "fiist-movei anu
she is constantly upuateu on maiket tienus in the Fashion-inuustiy.
Noieovei she ieaus magazines anu fashion aiticles on the Inteinet. The FC
woman uiscusses fashion, activities anu tienus with fiienus, thus she
iuentify heiself with what is cuiiently appiopiiate within hei iefeience
gioup. When the FC woman likes a ceitain bianu she spieau this thiough
woiu-of-mouth anu she woulu puichase clothes fiom the bianu again.
Bence the BC woman is loyal towaius the company. In conclusion; the FC
woman is active, social passionate, inuiviuual anu love outuooi activities.

6M0/0F 7&*'3+$- 2$$4*
Naslows hieiaichy of neeus suggest that is impoitant foi a peison's
inuiviuuality anu self-esteem to puisue theii goals. This fiamewoik

98
illustiates that the physical neeus aie one of the most funuamental ones
foi a customei; anu this incluues the neeu foi foou, safety anu in this case
most impoitantly clothing. (Wikipeuia.oig) The theoiy of self -
actualization is the component on top of the hieiaichy of neeus anu
uemonstiates the impoitance foi the customei to have fieeuom anu
choices. In conclusion, the FC woman neeu functional clothing with
featuies that incluue quality, value anu comfoit to puisue outuooi
activities anu that give hei self-esteem to ieach those goals of self-
actualization. The mouel can be seen in appenuix 7.4.

6M06 I,-=$'(2=

Conclusive obseivations fiom oui segmentation piocess help us to uefine
the taiget population. Reseaich suggests that a company with focus on
niche maiketing anu uiffeientiation shoulu taiget theii segment with a
Single - Segment Stiategy (Etzen, Walkei, Stanton, 2uu4). Likewise, FC
taiget one specific chaiacteiizeu segment within the total maiket anu can
be uefineu as;

G#+ ). ,0(%/2+- '( $5 $,%';+ L/2$5 J+%L++5 BCU_C F+$-( %#$% *';+ '5 $5
0-J$5 +5;'-/52+5% $5= L'%# 5++= I/- a0$*'%F ,*/%#'5O '5 /-=+- %/ 40-(0+
4+-(/5$* O/$*( $5= /0%=//-( $,%';'%'+(S










99

6M0> N3*('(32(2=
The position of a company is how theii piouuct, bianu oi oiganization is
peiceiveu compaieu to competitois by piospective customeis (Etzen,
Walkei, Stanton, 2uu4). It is impoitant to finu the position FC shoulu have
so they can attiact the customei segment with theii uiffeientiation
stiategy, appenuix 7.S. Thus, FC shoulu position themselves as a company
with the following Image;

). '( J-$5= L'%# */;+ $5= ,$-+ I/- %#+ +5;'-/52+5% %#$% /II+-( %#+ ,0(%/2+-
$ (4/-%F $5= I$(#'/5$J*+ '2$O+ L'%# %-+5=F '55/;$%';+ =+%$'*(S

6/0 B,-<$'(2= B(#

6/0/ N-(%$

It is possible with inuiviuual piices in one maiket without the influence of
the piice level in anothei maiket. Bence the piicing stiategy uepenus on
uiffeient stiategic situations (Solbeig, 2uu9). The finuings fiom the
methouology anu the exteinal analysis shoulu typically be the foimation of
the piices. In the clothing-inuustiy with a competitive situation wheie
each venuoi has its own uniqueness in ielation to quality, image, bianu
value anu so on, the piices will influence each othei (Solbeig, 2uu9).
Likewise, FC must take the cuiient iecession in Euiope into consiueiation
anu the fact that the puichasing powei in Fiance has ueclineu moie
significantly than the situation in Noiway. FC piicing stiategy is uefineu
fiom to what extent the inuustiy is globalizeu anu theii
inteinationalization capability anu foui uiffeient piice situations; Nulti
Local piices, Loc, local piice followei anu global piice auaptei. We will
only uiscuss the situation with ielevance foi FC. The fiamewoik with the
uiffeient stiategic situations is illustiateu in appenuix 7.6.


1uu
6/0/0/ Q3-+,'(32 39 8-(%$
FC is a local piice followei. They have low inteinationalization capability
anu opeiate in a multi-local maiket anu must be piepaieu to accept the
cuiient piice situations they shoulu face in the Fiench maiket. The main
challenge is that FC has an unfoitunate financial iesouice situation anu
limiteu unueistanuing of local maiket foices. Bence, the foimation of
piices is foimeu by pioviueu maiket infoimation anu shoulu be aujusteu
along with the leaining expeiience. Also, a full cost calculation is suggesteu
foi both the Noiwegian anu the Fiench maiket in a situation with
unceitainty. In the suivey, the iesponuents agieeu that spoity,
appiopiiate anu tienuy piouuct featuies aie extia auueu value anu FC can
thus chaige a highei piice piemium. Bowevei, the gioup in the suivey
expeiiment that ieceiveu the pictuie with FC most expensive piouuct with
the explanation of a fashionable jacket woulu pay a mean of S72 Euios.
The iesponuents in the suivey expeiiment that saw the pictuie with the
explanation of a spoity, quality jacket woulu pay a mean of 172 Euios.

Noieovei 71% saiu they woulu uefinitely not buy the fashionable jacket
with a piice of 7Su Euios oi neithei woulu they pay that much foi the
jacket in the expeiiment with the spoity uesciiption. Besiues only 8%
woulu pay 4Su-6uu Euios foi a jacket anu this shoulu be taken into
consiueiation. Bowevei, one can assume that is not possible to meet the
piice piefeiences of all the customeis within a taiget gioup.
Consequentially, if 8% within the segment woulu pay the piice piemium
foi the jacket - this might geneiate sustainable piofits. Besiues, ovei time,
a majoiity within the segment might pay moie when they can associate
anu ielate to the bianu. Auuitionally, ovei time, anu with moie expeiience,
FC has moie infoimation to manage a bettei piice policy. It is eviuent that
if they chaige a ceitain piice that is low enough, they can moie easily get a
giip within the maiket. This is because if FC chaiges a highei piice
piemium than the main competitois, they can enu up in a niche segment
that is naiiowei than uesiieu. (Solbeig: 2uu9 - S86-S87)


1u1


In the stiategic gioup analysis of competitois, we founu that the main
competitois chaige a piice between Suu - 6uu Euios foi theii jackets. In
conclusion, it is suggesteu that FC uo not iaise theii cuiient piice at the
Fiench maiket anu shoulu not chaige moie than 7Su Euios foi theii most
expensive jacket when enteiing the Fiench maiket. Theii piice piemium
foi theii most expensive jacket is justifieu by the fact that it has a hoou
with fui. Noieovei, the jacket uesign that is most similai to the
competitoi's collection shoulu not cost moie than 6uu Euios. This is also
in accoiu with the maiket tienus in Fiance touay wheie the consumeis
aie veiy piice-sensitive. The piice suggestion is also close to the uppei
limit fiom what the stiongest competitois aie chaiging. This is also the
case foi Wilu Roses that focus on uiffeientiation anu segments with
clothing foi active, spoity anu feminine women.


6/06 N-34&%'

A piouuct is piouuceu to satisfy the neeus of the puichasei may anu
shoulu be evaluateu in the context of the iole it will play foi the buyei. A
company in many uo not sell piouucts, but solutions. Fuithei, baseu on
Kotlei 1994, the piouuct is analyseu with a foui level uivision; (Solbeig,
2uu9) appenuix 4.2. The coie piouuct miiioi the customei neeus FC
shoulu covei, the physical piouuct is the components that pioviues a
function, the expanueu piouuct aie the featuies anu seivices incluueu so it
can be biought to the customei. Finally, we have the symbolic piouuct anu
compiehenu the bianu, coloui, packaging, quality anu son on. We founu
the main featuies FC piouucts shoulu covei to meet the segment neeus to
be the following;




1u2


6/060/ 73-$ N-34&%'
The piouuct must meet the iequiiements foi piofit anu the final buyei's
neeu foi status, appiopiiate functions anu comfoit.

6/0606 NC.*(%,: 8-34&%'
The piouuct must have specifications in teims of sizes, flexibility, quality,
uesign anu component uetails that all togethei fulfil the iequiiements foi
the functions.

6/060> "#'$24$4 8-34&%'
The extenueu piouuct level incluues FC logistics, uistiibution anu those
piouuction facilities that must be in oiuei so FC can pioviue quality,
function anu uesign. The suggesteu hiking touis in the mountains in the
piouuct packaging anu the peisonal messages fiom the uesigneis behinu
FC aie also a component of the extenueu piouuct.

6/060A K.+;3:(% 8-34&%'
Theii tiauemaik anu bianu will give the buyei confiuence anu signalize
Image, status, quality anu that theii clothes aie helpful tools foi women
puising theii uieams anu goals.

6/060D ?3=(*'(%*
Logistics is a pait of the total piouuct customei iequiiements foi ueliveiy
time, fiequency anu safety. We also consiuei this as a pait of the piouuct
FC offei as it has uiiect implications foi how FC shoulu uevelop the logistic
system. Logistics must be uelibeiateu if FC expanus theii piouuct-poitfolio,
as they might neeu to ient a laigei place foi stoiage. FC pioviues
tianspoitation foi the piouucts, anu make suie this is in accoiu with
contiactual uetails they have with ietaileis. Inteinational logistics is
complex anu FC must encountei many challenges on the way. The cuiient

1uS
global logistics systems aie ieliable anu FC can easily obseive wheie in the
value chain the goous aie situateu.


6/060F 7&:'&-,: %324('(32* (2 Q-,2%$
The cultuial conuitions as we uiscouiseu eailiei have to uo with how the
maiket uefines its own solutions to theii neeus. Theie aie vaiious options
to ueal with the cultuial uiffeiences. It is suggesteu that FC auapt to
maiket uemanus in Fiance but this must not be on the expenses of the
cultuial content in the piouuct; The Noiwegian natuie anu heiitage. The
best solution shoulu be keep the uesign anu iuea behinu the piouuct but
aujust the context of the messages that come with the jackets. This means
that it must be tianslateu to Fiench anu enlighten backgiounu, iueas anu
inspiiation behinu the uesign.

6/060H I$%C2(%,: -$*'-(%'(32*
FC must be awaie that it piouuct appioval by the goveinment uue to
stanuaius can be time-consuming anu shoulu be significantly piepaieu
befoie the expoit. (Solbeig, 2uu9) It is notewoithy that ethical anu
enviionmental consciousness in Fiance incieases anu FC ought to pioviue
tianspaiency in ielation to theii opeiations anu that piouuction-methous
meet ceitain stanuaius

6/060J N-34&%' :(9$%.%:$
In ielation to the finuings in the BCu matiix, we have two choices of
iemaining customeis in the piouucts phase of giowth, anu we neeu to
acquiie new customeis. FC shoulu concentiate on spieauing to new
maikets to extenu a piouuct's life, (Solbeig 2uu9). Appenuix 4.7.

6/060L N-34&%' 83:(%.
Theie aie foui possible piouuct policies foi FC; Ethnocentiic piouuct
expansion, multi-local piouuct customization, global piouuct
customization oi global piouuct management. (Solbeig,2uu9) We only

1u4
consiueieu the ethnocentiic piouuct expansion anu multi-local piouuct
customization, as those aie ielevant to FC.

6/060/M "'C23%$2'-(% 8-34&%'P$#8,2*(320
Fiist, the maikets aie somehow isolateu fiom each othei when it comes to
competition anu FC neeus a stanuaiuizeu piogiam. Bence, with the
ethnocentiic oiientation policy the home maiket also uefine the piouuct
level in the foieign maiket. It is implicit in this oiientation that if local
iequiiements anu stanuaius in ielation to the technical piouuct it shoulu
be sufficient foi expoitation. Seconuly, we assume that FC woulu move
towaius multi-local piouuct customization ovei time. The company will
still have same constellation in inteinational maikets, but eventually they
must get an investoi anu financial maiket activity inputs. Besiues, the
benefit with iegaiu to the seconu policy is incieaseu fieeuom within
uevelopment, maiketing, anu positioning.
The multi-local auaptation policy iequiies a moie stanuaiuizeu stiategy
call auapteu ethnocentiism. In conclusion; in a uefineu niche position
wheie the segment have the same attituues, expeiience, iefeience points,
etc. acioss the national bounuaiies; FC shoulu position themselves the
exotic aspect of the piouuct anu the Noiwegian heiitage.

6/060// 732%:&*()$ -$+,-<*
The most impoitant finuings ielateu to FC piouucts in the suivey weie
that quality is veiy impoitant anu piouucts shoulu pioviue comfoit anu
appiopiiate functions. The fashionable anu tienuy uetails shoulu
someway be incluueu in the uesign because the customei ielates this to
theii self-esteem anu theii appeaiances. Fuithei, it is notewoithy that
Fiench habitually weai neutial colouis anu that FC shoulu piomote both
neutial anu biight colouieu jacket in this maiket. In conclusion, FC have
coie piouuct with no significant neeu foi mouification, neveitheless; the
symbolic piouuct anu the uesciiptions shoulu be mouifieu with
infoimation in Fiench.


1uS
6/0> N:,%$

The competitois uistiibute piouucts fiom ietaileis in the ski iesoits anu
the Rhne Alps suiiounuings. The iesponuents in the focus gioup saiu that
!L/-= /I 2/0%#" implies that the stoies in the ski-iesoits have the latest
fashion anu that theii assoitments is cuiiently upuateu in accoiu with the
tienus. We iecommenu that FC also uistiibute thiough specialist stoies in
those aieas. This is also baseu on the assumptions that the FC segment
tiavel to concentiateu places in the Alps to buy wintei clothes. Noieovei,
The finuings in oui suivey suggest that the customeis piefei specializeu
stoies when they buy wintei clothes anu spoits weai because they
peiceiveu as ietaileis with highei quality piouucts.

Conveisely, the competitois uistiibute thiough online ietaileis anu
Inteinet theii homepage ietail-stoie. FC shoulu launch an online ietail
stoies with thiee uiffeient languages; Fiench, English anu Noiwegian so
that that inteinational customeis can navigate anu puichase the piouuct.
Finally, as iecommenueu in the entiy stiategy, FC shoulu uistiibute in
Fiance thiough Inteinet uistiibution because one can assume that not all
of theii customeis in the segment have possibilities to tiavel anu puichase
fiom special stoies in the Rhne Alps aiea. In conclusion; FC shoulu select
uistiibution ietaileis to uistiibute in the Rhne Alpes anu at the ski-
iesoits wheieas the competitois aie establisheu.
( http:www.leainmaiketing.net)

6/0A N-3+3'(32

The teim maiketing communication means that FC must cieate a uemanu
foi theii piouucts. (Solbeig; 2uu9) Bianuing anu awaieness of the bianu is
impoitant to geneiate piofits anu FC must justify why the customei
shoulu pay moie foi theii bianu than something less expensive. The
selection of maiket segments, piouuct offeiings, piicing anu uistiibution

1u6
channel iepiesents components of maiket communication. Bence, the
components uefine how FC shoulu uesign the piomotion anu maiket
impact anu position themselves among existing anu potential customeis.
Fuithei, the tools of how to impact the maiket shoulu be cooiuinateu anu
one can choose fiom seveial communication channels. Conveisely we will
only consiuei the ielevant channels foi FC baseu upon theii size, financial
situation anu segment.

In Fiance we iecommenu auveitisement thiough magazines, newspapeis
anu Inteinet. Cieating piomotional measuies such as uiffeient giveaways,
stoie mateiial anu biochuies when they launch the piouuct can geneiate
impoitant attention towaius the bianu. Noieovei, the measuies of shoit-
teim goals shoulu be a piomotional campaign, iepeateu auveitising in the
long-teim peispective inciease maiket awaieness anu loyalty to the
company. (Solbeig, 2uu9) Also, public ielation management with PR in
uiffeient meuia aiticles cieates positive attention. A maiketing buuget foi
expoit anu a "push" stiategy with maiketing channels uiiectly anu
inuiiectly position the company among existing anu potential new
customeis. Nost impoitantly foi FC touay is to cieate bianu awaieness
anu woiu of mouth maiketing. (Solbeig,2uu9) Fuithei, FC must not foiget
the necessity of local conuition auaptation. Be Nooiji(1994) aigues that
auaptation can be uiviueu into thiee impoitant consiueiations: Analysing
the most impoitant cultuial aspects, finu the most appiopiiate appioaches
that can be useu anu make suie this uoes not cause unsustainable costs foi
FC. (Solbeig 2uu9:).

The pioposal foi a piomotion stiategy is illustiateu aftei the conclusive
iemaiks. This pioposal shoulu be useu as a guiue foi piomotion in Fiance
anu incluues; shoit anu long-teim communications goals, anu channels
that geneiate maiket attention anu thus incieaseu sales.. A majoi gioup of
customeis in Fiance puichases fiom online uistiibutois Inteinet in
geneial. Noieovei. Inteinet is a platfoim anu a communication channel FC
shoulu focus on anu it can be manageu easily fiom Noiway. It is also

1u7
woith mentioning that the piomotion shoulu be moie aggiessive uuiing
the wintei-season because FC touay only piouuces one collection each
yeai. _K3:;$-=5 6MMLa

6/0A0/ 732%:&*()$ -$+,-<*
The featuies FC piouucts occupies must be tianslateu to the consumeis in
a ielevant language anu cieate associations. FC shoulu cieate a buuget foi
auveitisement, aggiessive piomotion campaigns, anu giveaways - Bence
",/2205',$%+8 to the segment that they aie innovative, piouuce high
quality piouucts anu that those piouucts can help them covei theii neeus.
The symbol anu theii bianu chaiactei shoulu be useu with theii logo in
auveitising anu packaging uesign.



















1u8
6/0D 73++&2(%,'(32 %C,22$:* ,24 ,24 %C3(%$ 39 %C,22$:* (2
Q-,2%$ 0


G$8-$*$2','(32 Biiectly to the customei
73+8$'('(32 ). $-+ (2$**? $5= 2/(% *'3+*F
<5;'('J*+ I/- %#+ ,/24+%'%/-(
KC3-'P '$-+ =3,:* Cieate image anu bianu
awaieness
?32=P'$-+ =3,:* Bianu loyalty
Sustainable Image
Incieaseu influence anu sales
Positioning
Biffeientiation
Positive attituues anu woiu of
mouth maiketing
N-3+3'(32 %,+8,(=2* Entiy campaign thiough
ieuuceu piices
uive aways"
Biochuies
N&;:(% G$:,'(32* Neuia aiticles
"Push" stiategy at exhibitions
PR anu cooiuination thiough
bianuing in the stoies
Sponsoiship of small events
73++&2(%,'(32 %C,22$:* Inteinet auveitisement
Nagazines; Elle, Cosmopolitian,
Naiie-Claiie
Woiu of Nouth



1u9
22. Conclusion of the project

In order to make a valid conclusion we will first consider the research problem;

!"#$% '( )*+'(,#+- ./0%0-+1( 2$-3+% 4/%+5%'$* '5 %#+ )-+5,# 6*4(78

Fiist, we iuentifieu the oppoitunities foi Fleischei Coutuie in the Fiench Alps
with methouology anu liteiatuie analysis. The finuings fiom the macio-
enviionment saiu that easiei communication, tianspoit anu technology,
outsouicing of piouuction anu tiaue libeialization has maue expoit easiei. We
see that FC has exteinal anu inteinal oppoitunities to geneiate moie piofit anu
attiact investment. With a focus towaius key stiategically issues FC shoulu
oveicome theii weaknesses anu thieats.
Noieovei, the uecieasing puichasing powei has changeu the Fiench attituue
towaius bianus. Piouucts fiom specialist stoies aie not consiueieu as ioutine
puichases because they offei pleasant expeiiences anu auueu value. This
applies to FC because they uiffeientiate themselves with niche piouucts that aie
uistiibuteu thiough specialist stoies.

The incieasing focus on touiism in the Rhne-Alps cieates oppoitunities foi FC
to uistiibute thiough specializeu stoies in the ski-iesoits. We see that theie is a
concentiation of women FC can taiget in this iegion. In the segmentation we
see that the typical FC women neeus functional clothing with high quality, value
anu tienuy uetails. Fleischei Coutuie has a uiffeientiation stiategy anu taiget
customeis with niche piouucts.

The capability FC has to uay with iegaiu to financial iesouices iequiie that the
owneis anu management have contiol ovei the activities in the value chain. We
iecommenu that FC shoulu attiact an Investoi anu entei Fiance with an agent
because they have knowleuge anu netwoik. The agent only paiticipates in
piomotion, sales anu maiketing activities. Also, the agent shoulu be the link
between FC anu possible ietaileis so FC finu theii niche in the maiket anu
uiffeientiate themselves fiom theii competitois. The Fiench consumei tienus

11u
inuicate that moie will buy goous fiom the Inteinet in the futuie because of
busy lifestyles. FC shoulu use these oppoitunities of the socio-cultuial tienus
anu uistiibute thiough Inteinet anu inciease the consumei bianu awaieness
ovei boiueis. In conclusion FC have maiket potential at the niche maiket I
Fiance, hence we suggest that FC "Seek niches in inteinational maikets" anu
launch theii piouucts in Fiance thiough an agent anu online uistiibution.




























111
6>0 U(;:(3=-,8C.

6>0/ U33<*5

Etzen, Walkei, Stanton (2uu4): T$-3+%'5O D^%# +='%'/5, Ncuiaw Bill
Iiwin, p: 1S1


uiipsiuu, 0. 0lsson, R. Silkoset (2u1u): T+%/=+ /O =$%$$5$*F(+ BS0%OS
Byskolefoilaget. p: 49 - S2, 14S - 146, 1SS

}ohnson uaiiy, Scholes Kevin, Whittington Rickaiu (2uu8): @W4*/-'5O
./-4/-$%+ N%-$%+OF b
%#
+='%'/5S Pientice Ball, Financial Times, Peaison
Euucation Limiteu. P: 7S, 77-8u, 9S, 196-2uu, 22S-24S, 278

Nalhotia anu F. Biiks (2uuS), T$-3+%'5O P+(+$-,#V 65 644*'+= 644-/$,#,
FT Pientice Ball Financial Times.

Nalhotia,(2u12) [$(', T$-3+%'5O P+(+$-,#? 4
th
euition, p: 18S

Petei }. Paul, 0lson C. }eiiy (2uu8): ./5(02+- [+#$;'/- $5= T$-3+%'5O
N%-$%+OF? b%# +='%'/5? Ncuiaw - Bill Inteinational Euition.

Solbeig, Cail Aithui (2uu9): <5%+-5$(Y/5$* T$-3+=(I>-'5O? B 0%OS
0niveisitetsfoilaget, p: 1SS-1S7, S28-S47, S62 - S6S, S8S -S86

Schaffei Richaiu, Agusti Filibeito, Bhooge Lucien }., Eaile Beveily(2u12):
<5%+-5$%'/5$* [0('5+(( c$L $5= <%( @5;'-/52+5%? <5%+-5$%'/5$* @='%'/5? b
%#

+='%'/5S South - Westein Cengage Leaining





112

6>06 E-'(%:$*5

Batia, Aaion Ahuvia, & Richaiu P. Bagozzi (2u12): [-$5= c/;+, }ouinal
Naiketing of Ameiican Naiketing Association

Chiistensen mfl, G#+ .$0(+ $5= %#+ .0-+

Chiistophei Naitin, Lowson Robeit anu Peck Belen (2uu4): !.-+$%'5O
6O'*+ N044*F .#$'5( '5 %#+ )$(#'/5 <5=0(%-F." Inteinational }ouinal of
Retail anu Bistiibution Nanagement

Baniels B. Alfieu, )$(#'/5 T+-,#$5='('5O, Alfieu B. Baivaiu Business
Review of 0se Restiictions, Nay 2uu9

Euiomonitoi Inteinational
[0F'5O <5%+5%'/5( '5 )-$5,+ =0-'5O %#+ -+,+(('/5, 2u12
./05%-F 2$-3+% '5('O#%? ]+-(/5$* \//=(? 2u1u
./05%-F 2$-3+% '5('O#%? G-$;+* $5= %/0-'(2 '5 )-$5,+, 2u11
.0(%/2+- c'I+(%F*+( '5 )-$5,+? 2u12
<5%+-5+% -+%$'*'5O '5 )-$5,+? ]$((4/-%? BCDB

}ansson anu B. Powei, Fashioning a ulobal City: \*/J$* .'%F [-$5=
.#$55+*( '5 %#+ )$(#'/5 $5= [-$5= <5=0(%-F, Centie foi Reseaich on
Innovation anu Inuustiial Bynamics, Bepaitment of Social anu Economic
ueogiaphy, 0ppsala 0niveisity, 2uu9

}ones anu Bailett Leaining, LLC, T$-3+%'5O N%-$%+OF .#$4%+- B, p. 4S.

Richins, Naisha L. (1994), !d$*0'5O G#'5O(V G#+ ]0J*', $5= ]-';$%+
T+$5'5O( /I ]/((+(('/5(?8 }ouinal of Consumei Reseaich


11S
Nouen, Ryan, G+,#5/*/OF $5= %/0-'(2: www.woiluywise.pbwoiks.com

News papei aiticles; Biivhuseffekten by Siguiu Rnningen anu Klei
kvinnei i ueies uimmei by Eline Bvamstau 2u1u,
http:fleischeicoutuie.nomeuia.html

6>0> 73+8$'('3-* O b3+$ 8,=$*
Beigans, www.Beigans.no
Kaii Tiaa, www.Kaiitiaa.no
Noiina, www.Noiina.no
Peakpeifoimance, www.peakpeifoimance.com
Sweet piotection, www.sweetpiotection.com
The Noith Face, www.thenoithface.com
Wilu Roses, www.wiluioses.it



6>0A W2:(2$ *3&-%$*

Naiketing Stiategy anu Supply Chain, Ameiican Appaiel
http:www.wikinvest.comstockAmeiican_Appaiel_(APP

Choosing Bianu Elements to Builu Bianu Equity,
http:www.managementstuuyguiue.comchoosing-bianu-elements-to-
builu-bianu-equity.htm

Ciitical Success Factois, 1u.u6.2u12:
http:www.minutools.compagesaiticlenewLBR_8u.htm

Bofsteue ueeit, Reseaich, Cultuial Bimensions
www.ueeithofsteue.com

Iuentify customei neeus, 1u.u6.2u12:
http:toolboxes.flexibleleaining.net.auuemositesseiiesSS16cscs_c
u2.html


114
Fleischei Coutuie home page: http:fleischeicoutuie.no

Fiench Law on tiaue maiks, 27.uS.2u12:
http:www.fienchlaw.comtiaue_maiks.htm

Fiench unemployment iate, u9.uS.2u12:
http:www.english.ifi.fifiance2u12u427-fiench-unemployment-iate-
hits-12-yeai-high-aheau-piesiuential-iun

Naiketing Nix - Place
( http:www.leainmaiketing.netPlace.htm)


Naslow's hieiaichy of neeus:
http:en.wikipeuia.oigwikiNaslow%27s_hieiaichy_of_neeus


Neiiiam Webstei, tianslation "Baute Coutuie":
http:www.meiiiam-webstei.comuictionaiyhaute%2ucoutuie

Poitei's five foices mouel, 16.uS. 2u12:http:www.uegiee-
essays.comessaysbusinessessaysinuustiy-anu-maiket-analysis-
baigaining-powei-of-supplieis.php

Stakeholuei analysismapping, 1u.u6.2u12:
http:www.minutools.compagesaiticlenewPPN_u7.htm

The EEC agieement, Noiway anu the E0, 16.uS.2u12: http:www.eu-
noige.oigNoiges_foiholu_til_E0E0S_avtaleneos_hoveu

The haiiieu life of the woiking mothei, 27.uS.2u12:
http:www.pewsocialtienus.oig2uu91uu1the-haiiieu-life-of-the-
woiking-mothei

The Piiacy Paiauox, 1u.u6.2u12:
http:www.newyoikei.comtalkfinancial2uu7u924u7u924ta_talk
_suiowiecki


Touiism in Fiance, u9.uS.2u12:
http:wiki.answeis.comQBow_many_touiists_visit_the_Fiench_Alps_p
ei_yeai


E44('(32,: *3&-%$* O N3@$- N3(2' N-$*$2','(32*h
Caiole uaily, Fiench Society, uuSB, 2u12
Baviu Beavan, Ethical Business Enviionment,, uuSB , 2u12




11S


ENN"RY1f

/0 N-34&%' 83-'93:(3

1.1 Fleischei Coutuie logo anu symbol
















/0> 73,' @('C C334$4 9&-0 jE:*3 &*$4 (2 'C$ %,&*,: $#8$-(+$2'

116
?(+('$4 "4('(32 O R&+;$-$4 9-3+ /P>MM
N-(%$ HDM "&-3*




/0> Y3@2 k,%<$' O ?(+('$4 "4('(320 R&+;$-$4 9-3+ /P>MM
N-(%$h FMM "&-3*


/0A U,*$ :,.$- 8-34&%'* 8-34&%$4 (2 *(:< ,24 +$-(23P@33:0

117
U:&$ *@$,'$-h JD "\GWSP
K%,-9h /JD "\GW0P
K3%<*h AD "\GWSP







60M Q3%&* =-3&8 *&++,-.

118

Foi the focus gioup inteiview we wanteu at least 6 paiticipants fiom a
iepiesentative gioup. We simply askeu 6 female fiienus if they wanteu to
paiticipate in a focus gioup, helping us with oui bacheloi thesis. They ieceiveu
a hat uesigneu by Fleischei Coutuie foi theii paiticipation anu to show oui
giatefulness. We cieateu seveial questions in auvance mainly iegaiuing
shopping habits, impoitant peisonal aspects with clothing anu othei socio -
cultuial questions. It was impoitant foi us befoie anu uuiing the focus gioup
not to infoim any of the paiticipants what type of piouuct oi company we
uiscusseu. This is because we inteiview we ievealeu the type of company anu
showeu the clothing they pioviue.

IC$ 8,-'(%(8,2'*5
The focus gioup consisteu of six female paiticipants between the age of 2u anu
28 yeais. Theii countiy of oiigin was: S fiom Fiance, 1 fiom Canaua anu two
fiom Sauui Aiabia. All of couise hau liveu in uienoble foi a longei peiiou of time.

Y,'$ 39 $#$%&'(325
Weunesuay 11.u4.2u12

?3%,'(325
Foi the location of the focus gioup we bookeu a ioom at uienoble uiauuate
School of Business, because it facilitates goou conuitions foi holuing a piopei
uiscussion. Fuithei, all of oui paiticipants weie stuuents at uuSB, also making
the choice of location easiei. Impoitant factois when choosing a location foi this
type of uiscussion aie the possibility of holuing a goou conveisation wheie
eveiy paiticipant can see both each othei anu us as leaueis in the eyes when
talking. The school classiooms aie peifectly uesigneu foi this mannei.




G$%3-4(2=5

119
Bence to the latei analysis of the conveisation we iecoiueu eveiything with a
film cameia. Naking it possible foi us to finu the impoitant uetails of the
conveisation on a latei stage. The iecoiuing was of couise cleaieu with eveiy
paiticipant in auvance of the inteiview.

IC$ V&$*'(32*5
We uiviueu the questions in to thiee sub-gioups; piobing questions, main
questions anu auuitional questions. In auuition to the questions we hau maue in
foi hanu of the focus gioup we askeu questions uuiing the focus gioup in
accoiuance of uncleai answeis.

N-3;(2= V&$*'(32*5

Bow often uo you buy clothes.

What kinu of clothes uo you buy moie often.

What kinu of clothes uo you buy maybe once a yeai oi moie
iaiely.

What kinu of stoies.

Boes it vaiy aftei season.

Bo you buy clothes most often because you ieally neeu it oi is it
moie impulsive.

Is theie any uiffeience in youi ciiteiia when you buy clothes at
winteitime anu the summei.













B,(2 V&$*'(32*5

12u


The fiist we want to know is what iecognize the wintei clothes
young women aie weaiing.

Fiom youi own opinion - uo you see something in common in the
clothes women aie weaiing.

What uo you think is the most impoitant featuies when they buy
neeu clothes.

Boes this vaiy fiom what type of clothing it is.

Bow many uiffeient consumeis uo you think exist.


E44('(32,: V&$*'(32*5

Bo you uo shop alone.

Bow much woulu you be willing to pay foi clothing if you neeu it
fiom a scale between Su - 6uu Euios.

What uo you like to uo uuiing youi spaie time.
Bo you uo shop by youiself oi with othei.


W&- -3:$*5

Facilitatoi numbei one was Naiius who woikeu mainly as the heau
speakei of the focus gioup, giving infoimation, asking the questions anu
guiuing the paiticipants towaius the wanteu uiscussion. Be also maue
assuie that the paiticipants uiu not get out off hanu uuiing the
conveisation.
Naiius was also contiolling the filming of the inteiview.

Kaien was aheau of the notes uuiing the session, summeu up the
uiscussion aftei it was finisheu, as well as assisting in the leaueiship of
the conveisation.
Finally, Kaien was in chaige of asking auuitionally questions.




121

I(+$',;:$ 39 93%&* =-3&85

u-S min: Intiouuction anu infoimation
1u-2S min: Piobing questions
2S-SS min: Nain questions
SS-1 h 1S min: Auuitional questions
1 h 1S min - 1 h 2S min: Infoimation of company anu enuing of session with
hanuing out hats.

E2,:.*(2= 'C$ 93%&* =-3&85
A couple of uays aftei the focus gioup we sat uown an analyseu the impoitant
finuings anu conuucteu what we wanteu to biing fuithei into the upcoming
suivey.

















122
>0M K&++,-. (+83-',2' 9(24(2=* V&$*'(322,(-$
Nean age: 2S
Responuents: Seveial countiies
Numbei of iesponuents: S4

Expeiimental pait:

1. What uo you think of the quality of the piouuct.



2. In my opinion this piouuct is.







12S

S. Now consiuei that this jacket cost 7Su Euios, if you neeu to buy a new wintei
jacket, what woulu be youi intention to buy it.






Suivey questions:

4. When you buy clothes, who uo you usually biing with you.








124

S. When I buy new clothes a get infoimation fiom..







6. When I buy new clothes I'm influenceu by.






7. I caie about otheis opinion of what is tienuy.

12S







8. Bow much woulu you pay foi a wintei jacket that is spoity, tienuy anu with
high quality.










126
9. When I buy new clothes I usually feel.






1u. I feel moie confiuent weaiing a jacket I think is tienuy.












127
11. Bow often uo you buy wintei coats, hats anu gloves.







12. Bow impoitant aie the following chaiacteiistics foi you when you buy a
wintei coat. This question hau a an eiioi in the softwaie**








1S. It is impoitant that my wintei clothes aie tienuy

128






14. I think most people buying clothes in the ski iesoits aie.











129
4. 1 ACE - Nouel








4.2 Kotlei's concept of the piouuct



Attitudes
Competence Embodiment
Basic
product
Physical product
Extended product

1Su



4.S Stiategic capabilities anu Coie competence




4.4 Poitei's thiee geneiic stiategies



Resources Competences
Threshold capabilities
Capabilities for
competitive advantage
Threshold resources
- Tangible
- Intangible
Threshold competences
Unique resources
- Tangible
- Intangible
Core competences
Competitive advantage
Lower cost Differentiation
Broad target
Narrow target
Competitive
scope
Cost leadership Differentiation
Focus cost
Focus
differentiation

1S1
4.S BAKKA - Nouel



Trial
Export
Extensive
export
Intensive
export
Multinati
onal
export
Global
marketing
Export
motive
Operative Operative
Strategic/Ope
rative
Mainly
Strategic
Mainly
Strategic
Market
Choice
Random
neighbour
country
Many
Markets
Market
concetration
Market
expansion
Consolidatio
n in the triad
Market
share
The company
is invisible
Insignificant Growing
Large in
chosen
markets
Large in key
markets
Organizat
ion
One man
show on
part-time.
Distribution
One man
show on
full-time.
Distributor
Export
department.
Agent
International
division. Sales
office
Global
transnational
organization.
Sales office.
Entrance
strategy
Warehouse.
Piggy back
Agent
Sales office in
main markets
Licensing.
Production
Production.
Alliances
Marketin
g Mix
Limited
promotion.
Low prices
Product
adoption.
Some
promotion.
Low price
Culture
adoption.
Product
advertisemen
t. Medium
price
Culture
adoption.
Profile
building. High
price
GLobal
products and
promotion.
International
PR
Economic
result
Marginal or
negative
Marginal or
negative
Positive
supplement
Mutual
dependent of
reference
market
Price leader.
Main source
of income.












1S2
4.6 BCu - Natiix





4.7 Piouuct life cycle


Market Share
M
a
r
k
e
t

G
r
o
w
t
h
Star ?
Dog Cash Cow
P
r
o

t
0
Introduction
Growth
Majority
Decline

1SS
4.8 Stakeholuei mapping















Interest
Low
Low Power High
Keep satised Manage closely
Minimum effort Keep informed
High
Suppliers
Interest groups
Potential employees/agent
Potential shareholders
Customer
Government
Retail customer

1S4
4.9 Cultuial web







Stories
Symbols
Power
structures
Organizational
structures
Control
Systems
Rituals and
routines
The paradigm
- Innovative Company
- Inspire girls to use
the nature
- Fashion and sporty
- Limited edition
- Quality and inspired
by nature and environment
- Care about the nature
- Protect the nature and
use it for what its worth
- Sporty and active
- Routines reects their
beliefs
- Down to earth
- The two owners where
their own clothing in bright
colours to reect their
image
- Flat informal structure
- Owners as well as the
managers
- Organic
- Share of information
- Based upon teamwork
- Cost controlled
- Customer billed for
their order
- Quality emphasized
- Get work done
- The best product for
as little direct cost as
possible
- Owners have the real
power and inuence the
decisions
- Middle prot model

1SS
S.1 PESTEL - Analysis







S.2 Poitei's five foices
P
! #$%&'%()*+ ,+-%*.'%*/. 0&'.1+ 2343!2323
! 5.1&+'-+6 7/18- /. 9:;.+ ! <=>-
! ?@A??B
! 0&++ C&'6+ <&+'
! 9+1+--*/. *. ?8&/>+
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! 9+681+6 ->+.6*.)- /. :*): ! +.6 >&/681%-
! 98=+- /7 0&+.1: 0'-:*/.
! 5.1&+'-+6 7/18- /. +.D*&/.E+.% '.6 +1/ ! 7&*+.6=F >&/681%-G >'F %/ )/ )&++.
! 0/18- /. :+'=%:G ->/&%- '.6 -%'F*.) *. -:'>+
! J*):+& >+&1+.%')+ /7 H/E+. 6/ :*):+& +681'%*/.
! ,/E+-%*1 %/8&*-E '.6 %/8&*-E %/ 0&'.1+
! K/&+ +7L*1*+.% >&/681%*/. '.6 6*-%&*I8%*/. -F-%+E
! ?'-*+& %&'.->/&%'%*/.
! ,+D+=/>E+.% /7 %+1:./=/)F >/-*%*D+ 7/& %/8&*-E
- ?'&%: %+E>+&'%8&+ *.1&+'-+- H*%: 2!M NB .+O% P3 F+'&-
! ?.D*&/.E+.%'= 1:'.)+
! ?E*--*/. IF +1/./E*1 ! )&/H%:
! 0/18- /. BQ2 +E*--*/. IF 1/E>'.*+-
! $%&*1% &8=+- /. %&'6+E'&R 68+ %/ %:+ 7'-:*/. *.68-%&F *. 0&'.1+
! 0&+.1: ='H /. '6D+&%*-+E+.%G -'F*.) +D+&F%:*.) H&*%%+. E/-% I+ *. 0&+.1:
! 0&++ E/D+E+.% /7 ='I/8&G E/.+FG -+&D*1+- '.6 >&/681%-
E
L
E
T
S

1S6














Threat of New
Entrance
Bargaining
power of
Supplier
Threat of
Substitutes
Bargaining
power of
Buyer
Competitive
Rivalry

1S7
6.1 SW0T - Natiix



7. 1 Bowmans Stiategy Clock:


7.2 Nine stiategic winuows
S W
O T
- Strong control of business
- Knowledge from every aspect
- Marketing
- Easily adaptable
- Niche in the market, differentiation
- Limited resources, both capital and
time
- No core competence to take
advantage of
- No knowledge of how to do
business internationally
- Increasing focus on environment
- Getting an investor
- Focus on tourism in France
- Globalization and internationalization
within fashion and trade
- Expand to sub - products
- Trend towards internet shopping
- Free trade area within EU/EEC
- Many competitors and substitutes
- Recession in Europe
- Culture differences
- Bureaucracy and regulations
Price High Low
P
e
r
c
e
i
v
e
d

a
d
d
e
d

v
a
l
u
e
H
i
g
h
L
o
w
Hybrid
4
5
Focused differentiation
Differentiation
3

1S8


7.S Expoit thiough Agent



7.4 Naslow's hieiaichy of neeus:
Search new
business markets
Prepare
Globalization
Strengthen your
global position
Consolidate your
export markets
Consider
expansion in
international
markets
Seek global
alliances
Stay at home
Seek niches in
international
markets
Prepare for a
buy - out
H
i
g
h
L
o
w
P
r
e
p
a
r
e
d
n
e
s
s

f
o
r
i
n
t
e
r
n
a
t
i
o
n
a
l
i
z
a
t
i
o
n
Low High
Industry Globality
Distribution/retailers Marketing and sale
Transportation
and logistics
Financial aspects After sale service
Fleischer Couture
Independent
Agent
Border

1S9




7.S Nap of competitois anu uiffeientiation possibility




Physiological
Safety
Love/Belonging
Esteem
Self - Actualization
Comfortable
Sporty
Fashion
Unoccupied
position
High status
Durable
North Face
Peek Performance
H&M
Go Sports
Wild Roses
Fleischer Couture

14u
7.6 Piicing in uiffeient stiategic situations















Global price
leader
Global price
adapter
Local price
follower
Multi local prices
I
n
t
e
r
n
a
t
i
o
n
a
l
i
z
a
t
i
o
n

c
a
p
a
b
i
l
i
t
y
High
Low
The industry globalization
Multi local
Global

141