he business model presented in Inditex Global Growth Opportunities (Inditex 2012) each brand entering a new market does not use advertisement. However, in case of Bershka, advertisement is important to draw Norwegian consumers attention to company s products. The importance of the advertisement results from Norwegian being highly influenced by media and their icons in music, cinema or fashion industry (Euromonitor 2013a). According to Euromonitor (2013a) this trend is expected to increase so as the usage of celebrities for marketing purposes.
«The selection of the entry mode influences the future performance of theand it requires extensive attention» (Heres 2007, p. 101). Especially that the potential market is the first choice that the company makes later on deciding which entry mode will suit the situation best. Although there are lots of possibilities to enter a new market, the company concentrates on three entry modes: franchising, joint ventures and wholly owned subsidiary. The difference between those forms of development is mainly expressed by «the degree of ownership and market commitment» (Heres 2007, p. 101) with location playing also a vital role. Since the company has always tried to maintain possibly high level of control, using wholly owned subsidiary seems to be the right choice for Bershka (Heres 2007). Such a strategy was also used for most of Scandinavian countries when other brand, Zara, was opening its first stores (Appendix 29) (Lopez and Fan 2009). Furthermore, Norway is a country with high growth potential, stable economy and quite low business risk what indicates that this strategy can be considered as the most suitable for this country (Chapter 5.1.2. And AIG nd)
Conclusions and recommendations
Bershka has fair chances to succeed on the Norwegian apparel market due to the construction of its business model and the characteristics of the market itself. Norwegian apparel market is characterized by several key factors which constitute company s success and these are quality of products, so highly valued by Norwegian consumers, the speed of response to changing fashion styles and Norwegians preferences as well as the reputation of international brands, so highly acclaimed by Norwegian consumers. Combining differentiation with low cost also can not be omitted, especially that apparel market is quite fragmented. In order to be successful the company has to distinguish its products to some extend remembering as well to save cost where possible so that the final price of products is competitive. Bershka s business model enables the company to meet those key success factors due to its vertical integration which enables the company to control major of its manufacturing activities resulting in being less dependent on external firms and speeding up the production cycle. Thanks to its model the company is also able to cut costs where possible as it prefers small delivers that allow faster response and less inventory at stores. Constant communication with store managers plays also an important role in company s success as their feedback allows designers to quickly modify products. Putting lots of emphasis on store interiors and using display windows instead of advertisement are what makes Bershka different from its competitors.wholly owned subsidiary as a mode of entry also seems to be the right one for Bershka since the company always strives for having as much control as possible using this form of development for countries being economically stable with high growth potential and low business risk., in order to attract Norwegian consumers, the company should consider using the advertisements and celebrities to promote their products as prime locations may not be sufficient. Furthermore, the possibility of online shopping is considered to be valued among young consumers therefore it is also advised to consider the investment in online store at the beginning of the expansion.
References
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.about.hm 2013c. Facts about H amp; M. [online] Available at:
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.Bernstein Re...
