International Business

SUBMITTED TO: MA’AM SADAF RAZAQ

SUBMITTED BY: M. SUBHAN ZAHEER 2017-BBA-210

Assignment
Sana Safinaz:
Sana Safinaz is part of SSFR(PVT)LIMITED. Established in 1989 Sana Safinaz,
founded by Sana Hashwani and Safinaz Muneer, is an established fashion label and
one of the most prestigious and diversified in Pakistan. Sana Safinaz are true
innovators and trailblazers in all their business and creative endeavors and have set the
bar high for the business of fashion in Pakistan. Sana Safinaz are only premier luxury
retailer offering elegant ready-to-wear and fashion fabrics, tastefully printed and
embroidered along with Avant -grade silhouettes for modern woman. Their position is
professionally very strong. With around 30 stores nationwide and a brand that ranks in
the top three in terms of ready to wear in the country, Sana Safinaz not only command
respect and recognition but they keep proving themselves worthy.

Gucci:
Gucci is a luxury fashion house based in Florence, Italy. Its product lines Include
handbags, ready-to-wear, shoes and accessories, makeup, home decorations and
fragrances. Gucci was founded in 1921 by Guccio Gucci in Florence, Tuscany. Gucci
operated 487 stores around the world and it became a worldwide-known brand. Gucci is
a subsidiary of the French luxury group Kernig.

Why Pakistani brands facing problems

against International business?
International businesses are more successful than Pakistani brands due to
some main reasons:

Traditions and Culture:

Ideologically, Pakistan is an Islamic state. Pakistani culture is primarily based on Islamic
way of life. All other cultural aspects are inspired by Islam. Pakistani culture is
highlighted by its grandeur, simplicity, firm convictions and noble deeds and ideas. In
Pakistan people managed to stick to their roots and following the traditions of their
forefathers. In this circumstance the company focus based on consumer demand. In
ready-to-wear consumer mostly demanded their traditional clothes. Due to this main
reason Sana Safinaz cannot go abroad. In foreign countries the amount of Pakistani
people is not enough to make that brand popular and successful. The domestic brand
Sana Safinaz do not compete with international brand Gucci because of its demand.
Gucci discovers new innovative and creative ideas in ready-to-wear for both men and
women. Their innovations and ideas become trendier and more famous in people.
Gucci has vast variety of clothing products and fashion.

Marketing:
Before entering in new market brands must heavily invest in their marketing but for a
Pakistani brand it is very difficult to market it in the different counties of ethnicity.
Showing their presence to a new country which requires a lot of budget because Sana
Safinaz is new company started in 1989 but Gucci is very old brand. Pakistani brand
must need huge finance to set their operations abroad. Moreover, a Pakistani brand
doing marketing of their designs in a country where there is a small amount of Muslim
community will also cause a lot of troubles.

Operations:
Sana Safinaz have around 30 outlets in a various city that covers almost whole of
Pakistan, while Gucci is operating in more than 487 outlets in all around the world. If
Sana Safinaz went abroad it will be difficult to keep an eye on operations outside
Pakistan. Most of the brands clothing is made in Pakistan so it is difficult for a Pakistani
brand to make their brands clothing in one country and then export them and pay extra
levy on its product. Operating in countries very standard from Pakistan can also cause
a lots of troubles because they need to hire the local workforce, staff and then shipment
charges that add up to transportation, holding cost that makes a Pakistani brand seems
overpriced. One more thing a Pakistani brand can do is to outsource their outlets across
the world which makes them easier to operate in the world and get successful.
Logistics:
Company that is originated in Pakistan have majority of operations in Pakistan why
need to put extra effort to make some dollars in a foreign venture. Domestic brand Sana
Safinaz has their logistic partners in Pakistan but not in every part of the world. Having
logistic partner outside Pakistan it must be large enough for the logistic company to be
profit but unfortunately low demand means low branches and low requirement of
logistics. Because Gucci has been operating in various contents and has operating in
several locations which makes them profitable for a logistic company.

Production sources Firm Infrastructure

Production is happening in Pakistan what is the need of the Pakistani brand to go
abroad. if Pakistani brand have to go abroad, they have to set up a production facility in
that country too which could cost a lot for the brand of Pakistan with limited finances.
Moreover, the management style is autocratic but the foreign countries have
management style democratic which also causes troubles for brand in Pakistan .But
Gucci has its operations in over all world and has its production facility in the whole
world so they do not require huge infrastructure problems in the world.