1) The document analyzes the potential of the US market for an international apparel retail company based in Mexico called EZ. 2) Key advantages of the US market include its large population, high GDP, cultural diversity, stable political system, and the value of the US dollar for imports. 3) The document recommends EZ enter the US market through a joint venture equity alliance to leverage local knowledge and reduce costs compared to a wholly owned subsidiary.

1. GM507 INTERNATIONAL BUSINESS AND MANAGEMENT
Group Assignment: Foreign Market Analysis
Mohammad Emrul Hassan Emon – 1001541092
Md.Arafat Hossain – 1001542070
Li Xin Wei – 1001130507
Group Members:

2. Background & Introduction
The apparel industry requires high and cheap labor with little capital
investment which suits best the actions of developing nations.
Financial constraints of the society present there do not contribute to the
purchase of the manufactured items, hence requiring the capitalization of the
purchasing power of developed nation’s consumers.
US has significant purchasing power per capita and is the most developed
nation, it makes it highly desirable to market these products.

3. Background & Introduction (Continued)
This retail company that is used in this market evaluation is company EZ
who has already establish proper sales portfolio within the South American
region.
Their manufacturing factories are centralized in Mexico. Ease in logistics and
trade restrictions.
EZ company strategy is by capitalizing a niche market.
E-commerce as a mode of sale can be a strength to the US market.

4. Steps to Access Foreign Market
 Market Potential
 GDP
 Public Infrastructure
 Surface Transportation (Roads, Bridges and Transits)
 Airport, Inland Waterways & Marine Ports

5. GDP Potential (US)
Figure 1: Graph of GDP Potential. Source: E-Marketer,
2015

6. Effects of Failure in Infrastructure Investment
Figure 2: Tabulation of Effects. Source: ASCE, 2015

7. Level of Competition
None of the successful apparel competitors fall within the luxury segment as
most falls under the low-middle segment group.
 Copying strategies from other successful entrants are part of the new
competitors strategy.
 Proposed distribution strategy to look into by EZ in the US would be niche
marketing.

8. Market Share of Competitors
Figure 3 : List of Apparel Competitors Within US.
Source: KPMG, 2015

9. Industry Statistics
Figure 4: Projection of US Apparel Industry. Source: E-Marketer 2015

10. Legal & Political Environment
Very safe market to penetrate due to its political and economic stability.
 US has some of the world’s amazing distribution systems
No internal customs or trade barriers as well as no foreign exchange controls.
Protectionism exist. Nonetheless, this applies to the US manufacturing plants
and not the apparel industry.

11. Sociocultural Influencers
 Cultural environments is made up of the influences of religions, family, educational
and social systems within a potential market.
US is made up of very diverse background due to the various nationalities living there.
In terms of values, time, religion and taboos, the citizens of US are very much
adaptable to various differences and changes and are not to affected by it.
This tolerance to diversity and values allows better prospect for foreign investors, in
this case EZ company to market its apparel products (Boundless, 2014).

12. Benefits That USA Market Offers To Large International
Apparel Retail Company – High Population
Easier for a company to target a particular or multiple market segments.
The more the segments targeted, the more the chances of a company
becoming successful .
The information on the population of the United States offers promising news
for an international Apparel retail company that is focused on venturing in the
United States.

13. Technological Advancement
High level of technological advancement.
 E-Commerce as an asset.
Close working rapport between the retailers and manufacturers.

14. Currency Benefits
An international apparel retail company will enjoy the benefits of operating in
the world's largest national economy.
The U.S. dollar is one of the most valuable currencies in the world.
The dollars will tend to make imports cheap and exports expensive.
Operating in the United States will allow an international apparel retail
company to borrow and also import cheaply from other nations.

15. Market Entry Mode
Being a large international apparel retail company, we hold
the resources to have the Foreign Direct Investment in USA.
 Foreign Direct Investment: Joint Venture

16. Decision Factors

17. Decision Factors (Continued)

18. Suggestion for the form of Strategic Alliance

19. Reasons to Choose Equity Alliance
 Reduce the cost of re establishing a new company or the acquisition of a subsidiary.
 Connect the profits and the common goal.
 Promote the reduction of competition among these companies.
 Make it harder for other companies to take over.
 Be mutually beneficial, complement each other, and form a more powerful
competitiveness.

20. Reasons to Choose Equity Alliance (Continued)
Our company focuses on multiple strategies as per different economic
conditions, time and geographical locations. Therefore, it is necessary to carry
out cooperation, to achieve the purpose of complementary advantages, especially
when they have obvious disadvantages, but also for the time being no capacity or
energy to take into account, it is necessary to find a partner to make up for their
own shortcomings, the advantages of the advantages of potential.
Fast, complementary, low cost, effective, and so on
(it’s relatively easy to implement strategy).

21. Thank you