This thesis analyses the British market of luggage and leather goods and strives to assess the attractiveness of the market for the Danish company DECADENT A/S whilst taking their growth plans into account. More specifically it analyses the market of leather handbags which is the main product that DECADENT A/S design and sell along with other leather accessories. The company is already exporting to a number of other countries in Scandinavia, Europe and the rest of the world, however the British market is viewed both as a geographically- and culturally close market thus leaving the question as to why the company has not yet started selling their goods on this market and that is why this thesis seeks to explore the attractiveness of the British market. In order to assess the attractiveness of the market, the thesis is divided into three main parts that are initiated by an introduction to the company and its strategy and growth plan. The subsequent three parts explore the overall framework conditions in Great Britain, the industry, the market, the company’s strategy, business portfolio, core competencies and the likelihood of obtaining a competitive advance on the British market. The thesis uses both primary and secondary sources and the adopted methods and models include a PESTEL-analysis, Porter’s Five Forces, and an STP-analysis that covers the first part of the thesis in order to address whether or not there is a potential demand for DECADENT’s products on the British market. The second part of the thesis uses the value chain, the PLC-curve and the BCG-matrix to determine whether DECADENT A/S has the resources to obtain a competitive advantage on the British market. Lastly the third part of the thesis addresses the likelihood of DECADENT A/S obtaining a competitive advantage on the British market by discussing export- and distribution theory and correlating it to the company’s strategy and growth plan on the background of the findings in the first and second part of the analysis. The thesis analysis indicates that DECADENT A/S does not have the resources nor the risk tolerance to make a significant dent in the British market of leather handbags, however by taking the usual steps and applying their vast experience with agents and distributors in other export markets, their unique offering of timeless design, excellent quality and affordable prices is expected to be adopted by the British consumers and thus creating a demand for DECADENT A/ HD IB AFGANGSPROJEKT - FORÅR 2015 !2 S’ products and in time, attractive profit margins for the company. Therefore the thesis recommends that DECADENT A/S carry on with their well acquainted export strategy, allowing them to steadily penetrate the British market within the range of their risk tolerance and growth strategy.
|Educations||Graduate Diploma in International Business, (Diploma Programme) Final Thesis|
|Number of pages||70|