Joint Venture entry mode of Marks and Spencer in China - Essay Example

Extract of sample
Joint Venture entry mode of Marks and Spencer in China

This research will begin with the statement that entering into a new market has been commonly accounted as one of the major challenges faced by companies seeking the benefits of internationalization market expansion. In its course to diversify in the global plethora, the company needs to deal with many barriers including cross-border trade regulations, cultural paradoxes and various other socio-economic factors that are deemed to influence business operations in the targeted host country. Contextually, entering into the market of China also posed considerable challenges to Marks & Spencer (M&S), which is a renowned British multinational retail chain. Critics have thereon argued that it is fundamentally owing to lack of market understanding and appropriate strategies adopted by companies to mark its failure in Asian countries like China. Several challenges and problems encompass the entry of M&S in the market of China. With the opening of their first outlet in the Chinese market, the company experienced a dip in its performance, which was accounted as considerably lower than the expected level in the Chinese market. The outlets opened by M&S, at the initial phases of its operations in the Mainland China, failed to satisfy the needs of the Chinese local customers owing to the company’s lacuna to identify customers’ preferences in the market and offer services accordingly. For instance, the M&S stores were unable to provide garments of smaller sizes, as preferred by the customers in China. ...Show more

Summary

The discussion will aim at analyzing the reasons for the breakdown of M&S in the Chinese market. Correspondingly, a comparison will be made with Tesco’s failure in China, where both the multinationals, i.e. M&S and Tesco had penetrated the market through joint venture

Author : loragusikowski
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