Globalization Of Acne Studios Into United States Market

Globalization of Acne Studios into United States market
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Globalization of Acne Studios into United States market
Organizations seek to expand their operations into worldwide markets when local markets are near or already reached saturation point or for any other relevant reason. According to Cao et al 2016, indeed, the main objective of engaging into any business venture is first to make profit. Being in the fashion industry, circumstances are no different. People around the globe are fashion conscious about them and will seek new trends of clothes that may present themselves. Others dress for comfort or according to the weather patterns. Therefore, there is a great potential in expanding activities elsewhere and beyond the home country. The company Acne Studios started operations initially in Sweden and was only dealing with women’s clothes but later on decided to venture into men’s clothes which were a huge success. More stores were open continuously as a result until it came to a point where there was a need to seek new markets across United States of America and expand operations there. International trading raises the levels of profits and sales while enhancing the prestige of the company, creating numerous job opportunities. Similarly, going global means the company devises ways to overcome fluctuations that occur repetitively.
Thesis statement
Indeed the paper seeks to analyze what economic factors to consider for Acne Studios to enter United States market.
Firm level factors:
Firstly, technological advancement plays a crucial role in the globalization process. Improvement of communication and transport has enabled firms decide to expand operations on a global scale. Firms are able to move their products to new centers of operations at ease. Also, branches operating everywhere are able to pass business information courtesy of the technological advancement which affects how companies transact business. Over the years, there has been remarkable transition in the way information is disseminated. Previously, business information would take too long to arrive at the required destination using such methods as post mails. With the booming introduction of the internet, branches of business can easily coordinate and pass information using email and other online platforms.
Additionally, technology has an impact upon transportation in that companies can move their products faster reaching the customer within short time periods. As such, technology in general improves the prospects of companies going global. In addition, auxiliary services include all institutions that offer facilitative services which make it easier to conduct business in foreign markets. Such services include banking, logistics and shipping services among others. Therefore, companies are constantly empowered to venture into new markets. For instance, when making sales, the business outlets in overseas markets need to have a way to safely bank their money. Security services are such auxiliary institutions which offer escort services for the money to be transited to the bank for safe keeping. The bank also is an auxiliary service since they may offer loan services required to boost the financial status...