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XYZ Ltd produces sports shoes which are worn by elite athletes and the general public in North America - HSC - SSCE Business Studies - Question 23 - 2012 - Paper 1
Question 23
XYZ Ltd produces sports shoes which are worn by elite athletes and the general public in North America. XYZ Ltd is keen to expand into Europe and Asia. (a) What is ... show full transcript
Worked Solution & Example Answer:XYZ Ltd produces sports shoes which are worn by elite athletes and the general public in North America - HSC - SSCE Business Studies - Question 23 - 2012 - Paper 1
Step 1
What is ONE possible benefit to XYZ Ltd of using global branding as a marketing strategy?
Answer
One possible benefit of using global branding for XYZ Ltd is the enhancement of brand recognition across diverse markets. By leveraging a consistent brand identity globally, XYZ Ltd can establish itself as a reputable presence in both Europe and Asia, which can lead to increased customer trust and loyalty. This can help the company reduce marketing costs in the long run as they do not need to tailor their marketing message for each region.
Step 2
Describe TWO physical distribution issues that XYZ Ltd will have to consider as part of their expansion.
Answer
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Logistics Infrastructure: XYZ Ltd will need to assess the logistics infrastructure in Europe and Asia. This includes evaluating transportation networks, warehouse capabilities, and distribution centers to ensure timely and efficient delivery of products.
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Inventory Management: Managing inventory levels across different regions is crucial. XYZ Ltd must develop strategies to balance stock levels according to local demand while minimizing costs related to overstocking or stockouts, which can impact customer satisfaction and operational efficiency.