This document compares the business environments in the US and India markets for the clothing brand Hollister. It outlines differences between the two countries in areas like politics, economics, society, technology and law. It then discusses opportunities and threats for Hollister to expand into India, and recommends entry strategies using Porter's model of national competitive advantage. Factors like workforce, textile industry, demand from young consumers, and low costs provide opportunities, while currency risks and competition pose threats. Overall expanding to India could be successful if Hollister uses a relevant strategy.

1. Group Members: Hung Piu Leung
Cap Duy Anh
Jinn Peng
Amaris Li
Bonny Le
International Business
Presentation
2013

2. Compare Business Environment
USA (Home Market) India (Host Market)
Political Trade regulations are important
as Hollister exports products
USA taxes increase the selling
prices of Hollister’s products.
Increasing economic
liberalisation since 1991.
Market now more open to
foreign investment.
Economical The US economy becoming
stronger and expected to bounce
back.
8-10% growth rate encourages
foreign investment.
BRIC (Brazil, Russia, India,
China) economy
Social Fashion in the US is eclectic and
mainly informal.
Cheap and large workforce.
Traditional clothing in India: Sari,
Sherwani, Lungi.

3. Population Pyramid
US
India
People’s median age: 37.2 years old.
People’s median age:26.7 years old.

4. Compare Business Environment
USA(Home Market) India (Host Market)
Technological Many companies prefer to
pay higher USA prices for
better products.
India manufactures 14% within
textile and garment industries.
India is third largest producer of
cotton in the world.
Legal The USA has several
regulations regarding trading,
selling and manufacturing.
India is based on common law
Environmental USA has smaller variation
in climate than India
Indian clothing market demand
different textures and materials.
Rapid industrialisation and a
growing population are straining
natural resources and environment

5. Hollister’s Opportunities and Threats
Opportunities Threats
 Growing reputation of brand
allows setting up concept stores
outside USA, which is a
highlight of the brand.
 Expanding in emerging markets
like India, where teens have
growing spending power.
 Create discount stores
 Expand internationally outside
US/Europe core.
 Exchange rate can add to costs.
 Increasing rental in India
 External forces such as sudden
change in population size,
government policies.
 Threat from other brands and
the price war in the market .

6. Entry Strategies
Griffiths, A. & Wall, S., 2011. Economics for Business and Management. 3rd ed. Essex: Pearson Education
Limited.

7. Porter’s Theory of national
competitive advantage
Demand conditions:
• Demand for fashion for young people
Related and Supporting industries:
• Strong textile and garment industry
• Cotton manufacture industry
Firm strategy, structure and rivalry:
• Low entry barriers
• Intensive rivalry
Factor conditions:
• Huge workforce and low wages
• Available factories

8. Conclusion and Recommendation
• Many opportunities to bring Hollister from the USA
to India.
• By contrast, the US market and India market have
lots different factors that can bring Hollister
disadvantages compare to competitors.
• Overall, with a relevant strategy Hollister can has a
successful business in India.

9. Reference list
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• CIA World Factbook, 2013. India. [Online] Available at: <
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2013].
• Docstoc, 2012. SWOT Analysis of Hollister Co By Jessica Gray Weebly [online]. Available
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Available
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November 2013].
• Griffiths, A. & Wall, S., 2011. Economics for Business and Management. 3rd ed. Essex:
Pearson Education Limited.

10. • Mbaskool, 2008.Hollister.[Online] Available
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[Accessed 15 November 2013].
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<http://prezi.com/0ahurzmoeipn/pestle-analysis-india/> [accessed 26 Oct 2013].
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<http://www.mbaskool.com/brandguide/lifestyle-and-retail/3784-hollister.html>
[ Accessed 7th Nov 2013].
• Slideshare, 2012. Hollister case study [online]. Available at:
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2013].
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%20Pres.pdf> [accessed 30 Oct 2013].
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11. Questions Time
Thank you