This document is part of a group project of expanding the company Nordstorm more specifically we are looking to expand Nordstrom local into France. Linked below is a presentation on the marketing plan (469 final presentations). My part is market entry pages 6-9 in the example provided below. First, create a country swot analysis on France related to Nordstrom local.Secondly, look at the potential partners in France. start with galleries Lafayette who is the most important partner with which we will have a joint venture. include a few more partners who will help us with Nordstorm local because it has an emphasis on customer service. Potential partners can include department stores or other manufacturers. include their logos and other pictures when appropriate. In The proposed entry part which you should mention after the potential partners. Please mention that we decided to enter into a joint venture with Galleries Lafayette. for reasons that you can find in the 469 final presentations which I linked. also, I will link a lecture in chapter 9 that explains joint ventures.Please cite your sources (Apa citations)and no plagrism
Market Entry Strategy: Nordstrom into France
Nordstrom is one of the American high-end fashion companies that have a sizeable market size. The firm intends to make an entry into France. The state is known as a home of fashion; thus, it would be a viable choice for the firm. The company requires a market entry strategy that would evaluate the probability of its success in France. The strategy involves adopting a joint venture strategy to cushion its entry. Without a proper market entry strategy, Nordstrom’s expansion to France will be an utter loss; therefore, it is essential to establish a feasible entry strategy for Nordstrom.
France SWOT Analysis
France is a home of fashion. France is one of the most fashionable states. Individuals especially at its capital, Paris, are keen on fashion (Bekhrad, 2019). The high demand for fashion products makes the state a perfect place to set up a fashion company. Nordstrom entry into France would be feasible since it already has a ready market. Consequently, France is the best choice for Nordstrom’s new market entry.
France offers incentives that offer sustenance to corporations. Given the Covid-19 pandemic, most stores’ operations were strained (White & Merriman, 2020). The curfews and restricted movements reduced every business sales drastically. Interestingly, the French government offered support to these enterprises to sustain their operations and employees (Moody, 2020). With a supportive government, Nordstrom is most likely to thrive. The provision that the government offers to enterprises would facilitate the success of Nordstrom’s entry into the state.
The France fashion industry is already flooded with high-end companies. Since France is a home of fashion, most companies focus on the production of fashion items such as women-wear, men-wear, cosmetics and jewellery (Bekhrad, 2019). Nordstrom has the exact product lines. Its entry into the France market will be faced with stiff competition. Without an existing niche in the French market, the entry will fail. Therefore, the competition in the fashion industry makes France unsuitable for Nordstrom’s new entry.
France provides an opportunity for focusing on masculine wear. France is more of a feminine country (Bekhrad, 2019). The focus on women’s fashion provides a gap in the men’s wear industry. It offers an opportunity for new firms to explore men’s fashion. With this opportunity, Nordstrom can focus on both men and women’s fashion but concentrate more on masculine styles. The strategy would aid the company to overcome the already flooded fashion industry in France. Indeed, France presents an opportunity for Nordstrom to establish its business.
The coronavirus pandemic threatens Nordstrom’s entry into France. With the Covid-19 pandemic, conducting business in France is relatively hard. Most enterprises have shut down with the sales continuously dwindling (White & Merriman, 2020). Due to these conditions, Nordstrom will have a hard time conducting its operations in France. It faces a risk of incurring losses because of minimal to zero sales. Therefore, the state of the country makes Nordstrom vulnerable.
Reasons for a Joint Venture in the Nordstrom’s Entry Plan
Galleries Lafayette is one of the leading companies in the fashion industry. It is one of the recommended sites for shopping as it provides a wide array of the product (Haussmann, n.d.). Due to its popularity, the company has a large market base. Nordstrom opts for a joint venture with Galleries Lafayette to downsizes the impact of risk by sharing it with the latter. Nordstrom is fairly new in France and would need a pre-existing company that has a well-established market base. With Galleries Lafayette, the company be assured of a percentage of customers. It will aid the firm in evading financial risk such as little to zero sales that would translate to losses. Therefore, its partnership with Galleries Lafayette is critical.
Printemps is one of the luxurious stores in the fashion niche. It has been in existence since 1865 and is one of the oldest fashion stores in France (White & Merriman, 2020). Since it deals with products similar to Nordstrom, the corporation could provide essential information to Nordstrom. The partnership will provide an avenue for the company to learn about France. The corporations will learn about the peaks and lows in the fashion industry in France, how to customize products and the tastes and preferences of the French. Since Printemps has been in existence for a long time, it could share some of its lessons with Nordstrom. Equally, due to its longevity in the market, Printemps is one of the most trusted brands in the fashion industry. Getting into a partnership with them will portray Nordstrom’s product as trustworthy and high-quality. As a result, the company will make a breakthrough in its entry.
In conclusion, France is the perfect state for Nordstrom foreign investment. The state favours the establishment of fashion-related ventures. The company’s partnership with Galleria Lafayette and Printemps will make the entry process easier. They will help the company in minimizing the impact of new entry risks and provide a platform for the company to learn about France.
Bekhrad, J. (2019). Why are the French so chic?. Retrieved 29 April 2021, from https://www.bbc.com/culture/article/20191007-why-are-the-french-so-chic
Haussmann, G. L. Galeries Lafayette Haussmann
Moody, K. (2020). Business daily – France to do ‘everything it can’ to support businesses during Covid-19 curfew. Retrieved 29 April 2021, from https://www.france24.com/en/tv-shows/business-daily/20201015-france-business-aid-coronavirus-restaurants-curfew-tech-industry-eu-unemployment
White, S., & Merriman, J. (2020). French luxury retailer Printemps to shutter some stores in virus fallout. Retrieved 29 April 2021, from https://www.reuters.com/article/us-france-retail-printemps-idUSKBN27Q30V