Research Korner

Job Costing and Process Costing Systems

Job Costing and Process Costing Systems Job-order costing is used in situations where the organization offers many different products or services, such as in craft manufacturing, hospitals, and legal firms. These system is used by companies whose products, or its wide range of products, are treated as individual jobs (1985). These companies receive requests from customers that include detailed specifications regarding the product. The specifications are used as a basis for estimating the total cost of completing the job and submitting a bid or the cost to the customer. Process costing is used where units of product are homogeneous, such as in flour milling or cement production on a continuous basis. Manufacturing costs, unlike job-order system, are accumulated in processing departments rather than individually (2002). However, the two systems also share the same characteristics. The basic purpose of the two system is to assign material, labor and overhead cost to its product, and the flow of cost through the manufacturing accounts is basically the same (Manufacturing Overhead, Raw Materials, Work in Process and Finished Goods). To explain further process costing, let’s take a look at Laura Foods which produces garlic flavored tomato sauce. The production of the sauce requires two major processes, chopping, and mixing and canning. Now assuming that Laura foods incurred $20,000 in the mixing and canning process to mix 100,000 pints of tomato sauce, how would they be able to compute the mixing cost per pint? Laura could simply divide her incurred cost from mixing and canning to the number of pints of tomato sauce it produced ($20,000 / 100,000 = 0.20/pint). One good example of job costing is the David, Bryan and Co. furniture manufacturing business. They received an order for 10 chairs all the way from Kansas City. The total cost of the job was $500, dividing the total cost of the job to the number of chair manufactured, we would know that the price for each chair is given at $50 ($500/10 = $50). The differences between the two systems are more obvious than its similarity. Process system manufactures a single homogenous product that is produced on a continuous basis over a long period of time, while job-order costing may manufacture many different products in single period. This is because production in job-order costing is done individually and not departmentally. And that is why process costing key document is the department production report of costs accumulation while job-order costing key document is the individuals job-cost sheet.

Job Costing and Process Costing Systems

Job Costing and Process Costing Systems Job-order costing is used in situations where the organization offers many different products or...

THEOLOGY

INTRODUCTION   According to ‘Transforming Mission’ which was written by David Bosch basically has the involvement regarding Matthew’s use of the Old Testament (OT) that could be deeply pastoral and missionary, as Bosch begins by considering  the idea of mission and how the missionary claims from the OT has evolved and been enacted in the world from a Jewish perspective and looking into the mission paradigm of post modernity, highlighting the difference between what the church perceives to be its missionary authorization and the work of God. (Bosch, 1991) It can be said that David Bosch’s engagement within the missiology of Matthew seems very interesting, as moving into discipleship in lieu to Matthew’s Gospel as it affirms an immense deal of the Old Testament experience. (Bosch, 1991) Thus, Matthew has been a journeyer attempting to live out the teachings of Christ. Bosch’s analysis of Matthew’s use of OT relates to ‘’Great Commission’’ that was enlightening to begin the journey towards intended ministry with the theme relating to the cost of discipleship. (Kinnamon, 1991) Moreover, Bosch’s claims relate to certain exploration of the Christian consent to love that, ‘’Christians should relinquish all desires to judge others; their behavior should be exemplary against the civil order’’, as it can be said that a Christian lifestyle should also be winsome and it should attract outsiders and invite them to join the community. (Kinnamon, 1991)   MAIN BODY   Bosch’s have explored the multifaceted missionary motivations relating to Matthew’s use of the Old Testament as deeply pastoral and missionary that is much greater than the traditional paradigm which was the underlying motive of the church that being ‘conversion of the heaten.’ (Cunningham et al., 1987) As Bosch made use of the ‘paradigm shift’ rather than a break in mission thinking and practice in both pastoral and missiological terms on the cusp of a paradigm shift. There was a reframing of mission whilst being positive for the continued existence of the Church through worldwide missionary work and societal maturity. (Cunningham et al., 1987) In recent years, the terms ‘mission’ and ‘missional’ have increased in use, but ‘mission’ referred to:   Ø      the sending of missionaries to a designated territory Ø      the activities undertaken by such missionaries Ø      the geographical are where the missionaries were active Ø      expansion of the reign of God Thus, David Bosch describes the post-modern paradigm for mission without doubting its value and usefulness for teaching missiology in important respects. Bosch's claim that his missiology is host-modern. The weakness of Bosch's "emerging ecumenical consensus" on mission was apparent in its very year of publication (1991) when the seventh assembly of the World Council of Churches (WCC) famously failed to find a consensus. (Cunningham et al., 1987) The tact that Bosch's paradigm can be described as a truly post-modern one, even by his criteria; it reveals both Bosch's lack of a creation theology and suggests also the limited nature of pneumatology. (Cunningham et al., 1987) Furthermore, Bosch is keen to emphasize the missionary nature of the Spirit but he stops short of discussing the mission of the Spirit in which the Spirit is an "afterthought used to explain God's activity in the church in connection with Jesus, ignoring the mystery of the Spirit as an equal modality or persona of the divine nature". (Bosch, 1991 p. 14) Moreover, the mission of the spirit is bound thoroughly to the missionary activity of the church, when Bosch seeks to broaden mission to take account of the "comprehensive" nature of salvation, he can do so only by increasing the scope of the church's missionary activity (Bosch, 1991 pp. 393-400). Henceforth, mission appears as a work to be achieved by organization and strategy and Bosch paradigm is very much in the mould of the enlightenment project and the possibilities raised by missio Dei for deriving mission from the very nature of God are not fully realized. (Ibid. p.22) There was a consequence of Bosch's involvement of the Spirit with the Church is the uncontextual nature of missiology brought to the attention of the church by theologies on the validity of a global theology but Bosch follows the traditional ecumenical approach of thinking globally and applying as his hope is in the institutional church in its Western form despite its legacy of "missionary war", holocaust and apartheid. (Ibid., pp. 384-9). Bosch acknowledges the role of the Spirit in other faiths in preparatio evangelica (Bosch, 1991 p. 484) but he hesitates to give any value to the faiths themselves. Bosch's approach of "bold humility" which recognizes an "unresolved tension" cannot point to any other way of salvation than Jesus Christ; at the same time cannot set limits to the saving power of God" (Bosch, 1991 p. 483). Matthew’s use of OT as deeply pastoral and missionary was concerned with the situation and the consciousness of God’s teachings as Matthew begins the use of OT by taking the descendants of Jesus because he wanted to show that Jesus was the son of David per se. Matthew's use of the OT is amicably written for a Jewish Christian audience living within the proximity of their homeland. (Gundry, 1967) The community for which Matthew was written for a Jewish Christian community that has encountered some original tensions in the period of renewal as it would appear that they've been there a longer time and shows the realization of an older legacy of Jesus' traditions. In Matthew, in the Sermon on the Mount, Jesus says, "think not that I've come to destroy the law and the prophets: I've come not to destroy them but to fulfill them." (Gundry, 1967 p.23) Furthermore, one of the indications of the situation of Matthew's community comes up when Matthew's use of the OT that gives regulations for how to discipline members within the society. It says if one of the members of the parishioners’ commit sins then go and tell them about it and if they refuse to listen to you, take a friend and tell them about it and if they refuse to listen to them, take them to the church and if they refuse, kick them out. (Gundry, 1967). The way Matthew told the story of Jesus draws on a lot of symbols from Jewish tradition that conveys a clear picture of Jesus. Jesus goes up on to a mountain to teach and there talks about the law as this indicates pastoral as well as missionary claims from the OT as Jesus delivers different sermons just like the five books of Torah. Matthew is to portray a Jesus whose Jewish identity is beyond doubt. Matthew takes no chances as he Jesus' lineage way back to Abraham in short, Jesus is a Jew. (Gundry, 1982) Thus, Matthew uses his resources in order to create a different narrative in which Jesus frequent teaches the people. Matthew's concern about the church is reflected as he tells the story of Jesus stilling the storm. (Gundry, 1982) According to one interpretation, this story is really a metaphor: the disciples represent the Christian community, the boat is the church. In the face of upheaval and uncertainty that challenges faith and threatens to undo the church, Jesus gives assurance to the faithful: "Behold, I am with you until the end of days." (Gundry, 1982 p. 25).  In Matthew 4:12, Matthew begins his account of the ministry of Jesus, introducing the preparatory preaching of John the Baptist (Matthew 3:1-12), the baptism of Jesus that culminates in God's proclaiming him his "beloved Son" (Matthew 3:13-17) and the temptation in which he proves his true sonship by his victory over the devil's attempt to deflect him from the way of obedience to the Father (Matthew 4:1-11). Moreover, the central message of Jesus' preaching is the coming of the kingdom of heaven and the need for a complete change of heart and conduct, on the part of those who are to receive the gift of God (Matthew 4:17). There are great discourses of Jesus, with the formula "When Jesus finished these words" (Matthew 7:28; 11:1; 13:53; 19:1; 26:1) which is an important structure of the gospel. The discourses are the "Sermon on the Mount" (Matthew 5:3-7:27), the missionary discourse (Matthew 10:5-42), the parable discourse (Matthew 13:3-52), the church order discourse (Matthew 18:3-35) and the eschatological discourse (Matthew 24:4-25:46). In Matthew 4:23 a statement of Jesus' activity speaks not only of his teaching and proclaiming the gospel but of his "curing every disease and illness among the people"; this is repeated almost verbatim in Matthew 9:35. The nature of the community that Jesus will establish is shown; it will always be under the protection of him whose power can deal with dangers (Matthew 8:23-27), but it is only for those who are prepared to follow him at whatever cost (Matthew 8:16-22) not only believing Israelites but Gentiles who have come to faith in him (Matthew 8:10-12). The disciples begin to have some insights into the mystery of Jesus' person. They wonder about him whom "the winds and the sea obey" (Matthew 8:27) and they witness his bold declaration of the forgiveness of the paralytic's sins (Matthew 9:2). The forgiveness of sins is now not the prerogative of Jesus alone but of "human beings," of the disciples who constitute the community of Jesus, the church. (Matthew 10:5-42). Jesus is moved to pity at the sight of the crowds who are like sheep without a shepherd (Matthew 9:36), and he sends out the twelve disciples to make the proclamation with which his own ministry began, "The kingdom of heaven is at hand" (Matthew 10:7; Matthew 4:17) and to drive out demons and cure the sick as he has done (Matthew 10:1) their mission is limited to Israel (Matthew 10:5-6) as Jesus' own was (Matthew 15:24) yet the perspective broadens to speak of the mission that the disciples will have after the resurrection that will attend it (Matthew 10:18). The reason given for Jesus' speaking to the crowds in parables is that they have hardened themselves against his clear teaching, unlike the disciples to whom knowledge of "the mysteries of the kingdom has been granted" (Matthew 13:10-16). In Matthew 13:36 He dismisses the crowds and continues the discourse to his disciples alone, who claim to have understood all that God has said (Matthew 13:51). Jesus is shown preparing for the establishment of his church with its teaching authority that will supplant the blind guidance of the Pharisees (Matthew 15:13-14), whose teaching is repudiated by Jesus as the norm for his disciples (Matthew 16:6, 11-12). The church of Jesus will be built on Peter (Matthew 16:18), who will be given authority to bind and loose on earth, an authority whose exercise was confirmed in heaven (Matthew 16:19). Once again, the perspective of the evangelist includes the time of Jesus' ministry but that of the preaching of the gospel after the resurrection. The narrative culminates in Jesus' denunciation of the scribes and Pharisees, reflecting that of Matthew's church (Matthew 23:1-36). In addition, Matthew's portrayal of Jesus in his passion combines both themajestic serenity of the obedient Son who goes his destined way in fulfillment of the scriptures (Matthew 26:52-54) positive of his vindication by God and the depths of fear and abandonment in face of death (Matthew 26:38-39; 27:46). Matthew offers a model for taking religious heritage seriously. Matthew's approach is one of being thoroughgoing and positive. Henceforth, faith communities need to keep people connected to their roots, finding proofs from prophecies which meant something else. Matthew's strong emphasis on the integrity of behavior and attitude and pretence are important correctives of the Christian faith which give major emphasis to religious experiences and appeal to Christian status. (Gundry, 1982) Matthew's emphasis on authority was a legacy which has not always blessed the church and his emphasis on Jesus has spawned versions of the Christian message against which one needs good news. (Towner, 1995) It is easy to hear Matthew's gospel as declaring that we should act in certain ways and have certain attitudes, because Matthew is interpreting the rightful demands of the Scripture in order to win people to the notion that God is compassionate. Matthew appears to have believed that threat of judgement from the judge to come and the promise of life on the basis of right interpretation of demand produce change in people and achieve the goals of pastoral and missionary works. (Howard, 1986) It is important to bring Matthew's gospel into dialogue about the enabling and liberating power of grace which sets people free to bear fruit. The authority structure runs through much of Matthew's theology and produces Jesus who is the supreme scribe, the authoritative interpreter of scripture. (Howard, 1986) Here the focus is on the power of the mission to which one can appeal while Matthew affirms Jesus' influence, he is at pains to demonstrate Jesus' consistency with the law and to show Jesus dependent on it as the Son of God that will emphasize Jesus' authority based on the right to power of the substance of what is said consistent with Matthew's approach to the OT scripture. (Howard, 1986) Generally, preaching from Matthew must always be more than translating Matthew into the modern terms. (Howard, 1986) Matthew does not stand alone, interpreting Matthew for preaching means listening to Matthew in its stipulations but within a critical reflection and appropriation which has hierarchy of values because the people of the society have been able to acclaim, 'this is the word of the Lord' and the acclamation is naive without the living proclamation which engages in important indication and personal encounter with thy word. It is important to realize that most of Matthew's use of the OT is so straightforward that it is not liable to the charge of OT’s misinterpretation. (Longenecker, 1975)  The use of the Old Testament since, Matthew as God’s biographer was not accountable of interpreting the scripture in ways alien to how Old Testament authors interpreted the Old Testament. (Longenecker, 1975) Thus, many of Matthew's documents are rueful in nature, as he uses and mentions the OT to show how Christ fulfilled His missionary journey within the scripture deriving from the OT meanings as a result of realization of His words to the people. Matthew was held to be using pesher approaches to the OT and that God's intent when He inspired the OT author was more intense than the OT author himself. (Longenecker, 1975) Thus, Matthew quotes texts that predicts but uses the passages that have thematic significance that exceeds the need for pastoral deeds as well as missionary works as viewed from the significance of the OT and its meaning to the people and that few concerns over Matthew's use of the OT may be tempered by a better sense of what Matthew intended when he said ‘’Christ fulfilled a scripture’’. Similarly, views noted differences of opinion be surprising giving worth and value of the nature and importance of Christian mission that implies the range of ways in which the Christian community relates to the Jewish Scriptures.   David Bosch’s treatment of mission in the Old Testament in was limited in ways and Bosch’s view that ‘’ there is, in the Old Testament, no indication of the believers of the old covenant being sent by God to cross geographical, religious and social frontiers in order to win others to faith in Yahweh’’ has been seen as unduly narrow. Then, Bosch certainly believed the Old Testament highlighted themes of importance to Christian mission and among commentators on biblical theology of mission there is attention is commonly drawn to the universal concerns of Matthew’s use of the OT as deeply pastoral and missionary along the importance of the prophets promises with Israel’s neighbors and the vision of Isaiah’s role as a ‘’light to the nations’’ in the experiences of the Church seem unduly philosophical, relevant to Christians with the temptations and responsibilities of an experience of the knowledge of God as creator mankind. (Schreiter, 1991) God-given purpose of the Church can be considered in terms of its worship, and its responsibilities towards its environment. It is a distortion of the nature of the Church to collapse the dimensions of life into its external mission. (Towner, 1995) Nevertheless, if the value of its worship and community life is not in doubt, it is useful to use the word ‘’mission’’ to refer to the responsibility of the people of God towards outside the community of faith which constitute that mission and its changes over time. (Schreiter, 1991) CONCLUSION Therefore, God as the creator and sustainer of mission, there is a need to focus on churches as reconciling and healing communities of engagement in mission raises with the ability of the Old Testament to address those does not necessarily answer the question of the missionary nature of the Old Testament, but reinforce its relevance for some issues arising out of mission such as the attitudes towards religions and cultures, attitudes towards other cultures, the role of God in realizing promises and the realities of leadership in a political world that inform the study of the Bible and the Old Testament in relation to mission. Matthew’s use of the Old Testament does not correspond in showing points of resonance with the development of the redemptive themes of pastoral and missionary claims in the OT as Matthew may show how to interpret the OT by indicating that the early scriptures have projective functions as they reiterate the theology of an earlier motif and anticipate total realization in future acts of God. Nonetheless, the use of interpretive methods in scripture significantly strengthens the confidence of contemporary missionaries who are committed of careful exegesis that honors the intent of God. Lastly, the Matthew’s use of the OT has been precisely celebrated and essential as Bosch himself points out; no paradigm is the last word in missiology (Bosch, 1991 p. 511). It may be that in retrospect Bosch's claim will be seen not as setting out a new paradigm but as seeing the old in a different perspective that relates to the reality of mission as of today’s epoch. As the modern paradigm will take into account the mission of the Spirit which is a mission that takes place in the context of supplementary spirits. Hence, in any truly missionary encounter, there needs to have a recognition of the application of the claim as the nature of the mission has discerned by the Spirit of Christ himself.

THEOLOGY

INTRODUCTION According to ‘Transforming Mission’ which was written by David Bosch basically has the involvement regarding Matthew’s ...

Strategic Business Analysis of IBM

Strategic Business Analysis: IBM   Table of Contents   Introduction.. 2 Internal and External Factors Affecting IBM.. 3 SWOT Analysis. 3 Strengths. 5 Weaknesses. 6 Opportunities. 7 Threats. 8 Strategic Choices of IBM.. 8 Openness. 9 Reduction of the Cost of Service. 10 References. 13 Appendices. 14 Appendix A: IBM: Background Information.. 14   Table of Figures   Figure 1 SWOT Analysis of IBM.. 4 Figure 2 Openness Strategy. 9 Figure 3 Reduction of the Cost of Service. 10 Introduction             As of now, there are different internal and external factors that are affecting the performance of each and every individual in an organization and the overall performance itself. In addition, it can be seen that those companies that are operating in the global market are the one that are directly affected due to the different changes. The said change is driven by transformation of local and international market such as the financial and economic situation of the world, trends in the local and international market as well as the changing tastes, preferences and behaviors of the customers. All of the said factors are considered as connected with each other, thus creating changes that are important in order to sustain the position of a company in the global market.             As a result, more and more companies are focusing on the process of evaluation of their current position in the local and global market which focuses on analyzing their internal strengths and weaknesses as well as the different external environment factors that can cause threats and opportunities for the company. All of the said factors can be used in the process of decision-making in different activities and plans that are needed to be done in order to ensure competitive advantage and position in the market.           Internal and External Factors Affecting IBM             International Business Machines Corporation (IBM), also known as the Big Blue is a multinational computer technology and consulting corporation that is located in Armonk, New York, USA. IBM is considered as one of the few Information Technology (IT) companies with a continuous history that dates back to the19th century. The company sells computer hardware and software and offers different infrastructure services, hosting services as well as consulting services in different IT areas from mainframe computers to nanotechnology. Aside from that, IBM is considered as the world’s largest computer history and considered as the largest IT employer in the world with 355,000 employees  SWOT Analysis             SWOT analysis is a strategic planning tool that is use n order to evaluate the strength, weaknesses, opportunities and threats that are involved in a project, business venture or in any other situation that requires a decision. Thus, the process of sizing up the internal strengths and weaknesses as well as the external opportunities and threats helps to provide a quick overview of the strategic situation of an organization (2007, ).             Figure 1 SWOT Analysis of IBM                                                           Figure 1 shows the SWOT analysis of IBM, showing the current strengths, weaknesses, together with the opportunities that can be exploited and the threats that must be prevented. Strengths             The most important advantage of IBM is its image or brand. This is due to the fact that IBM was the first important player in the industry or in the field. The said aspect gives the company their competitive advantage due to the fact that they have already established a name as well as relationship with their customers. In 2003, IBM topped the study regarding the brand perception of IT services. Buyers of different IT services perceive IBM as the top brand in all vital aspects of the market. The result of the study had showed that most of the 197 respondents and consumers of IT services that were surveyed by Gartner put Big Blue as the top company in the business and IT consulting, systems development and integration, as well as IT outsourcing (Sharma 2003).             Another advantage is the strong global presence of the company. The IBM Business Continuity and Resiliency Services has a worldwide presence across four important geographies and provide consulting services as well as recovery support for the large systems, midrange and even distributed environment customers. In addition IBM brings their customers the convenience of doing business in their customer’s own language and culture because it can help to reduce efforts, time and cost of traveling, that enables an easy access to a business environment where in their customers will be comfortable (IBM).             In connection to the long history of the company, it enables them to get hold of different valuable intellectual property, software, patents as well as ideas due to the fact that they have established and gathered group of people with wide knowledge and skills regarding computers and application of IT. This enables the company to have a vast research and development aspect. Weaknesses             The most important weakness of the company is that it is starting to show a declining share in the market, due to the growing competition in the national as well as global business industry. In 2007, the market share of the company had decline, making HP its leading competitor to gain the previous number one place of IBM in the worldwide market share. HP narrowly beat IBM in terms of worldwide market share, showing a 29.6% points, compare to the 28.9% points to IBM. It is important to consider that HP’s gain over the year was IBM’s loss, which shows that the companies are switching places. However, both of the manufacturers had been able to report positive revenue growth per year (2008).             It was mentioned in the strength of the company, that its human resource of work force is considered as the primary factors that drive the success of the company, however, it is always important to consider that too much of everything is bad. Thus, in the case of IBM, it has a huge employee population, and they are all highly paid. The said aspect can affect  the entire operation of the company in terms of the production cost. Aside from that, it can also affect the communication process and management activities inside the company because of the huge population. Opportunities             Currently, there are so many opportunities that can be exploited by the company in order to maintain their competitive advantage and eventually helps to continue the growth of the company in terms of size, sales and market share. One of the most important factors is the aspect of globalization. This can be done by market development, where in the company will focus on looking for new possible market. In addition, innovation is a very important aspect, thus it can be done by have a collaborative or partnership with other IT-related company in order to produce new products that will support the ever-changing needs of the clients. With connection to that said aspect, it will be important for the company to focus on the growing demand of the public and other organizations towards open source software. This is due to the fact that some of the competitors of the company and other players in the software and IT-services industries are offering products and services that are too high that cannot be afford by the clients, primarily those small businesses, but IT is considered as a must in most of the businesses.             Another opportunity of the company is the growing demand for IT and Information Systems. This is due to the fact that most of organizations, companies and businesses in the world are becoming more aware regarding the importance of application of technology, particularly IT in their processes.   Threats             The major threat that must be analyzed by the company is the current changes in the global economic and financial status. This is important because it will affect not only IBM, but also other businesses in the world. As a result, it will affect the individual performance of each and every client of IBM that will affect their buying behavior. The company will be hurt by the slowdown in the Systems and Technology business ( 2008).             Another important aspect is the increasing competition. Due to the fact that computer is already considered as one of the basic needs of most of the individual, there are many IT companies that are entering the industry. And although the major competitor of IBM is Hewlett-Packard, it is also competing in some of small players or competitors such as Dell and Accenture. Strategic Choices of IBM             Based on the said internal capabilities, the strategic choice of IBM must focus on two important aspects: the openness; and the reduction of cost of services.                           Openness   Figure 2 Openness Strategy                                                       It is important to consider the vitality of the current strength of the company and how it can be used in order to exploit the opportunities that can be found in the external environment. In the case of IBM, the primary strengths focus on the different technologies as well as knowledge that are available for the employees in order to start doing their innovation. In addition, the company also holds a strong team that focuses on research and development of the company.             On the other hand, the primary opportunity focuses on the fact that there is a growing demand for open-source products and services, in addition to that standards in the economic expansion. The said aspect is important due to the fact that customers from different part of the globe are looking for an integrated solution in order to solve their application development needs (Novell 2006).             The said action will be done by different partnership with different IT-related companies that are engaged in developing different open-source software and application. Open source is a human-readable source code that was made available under a copyright license that meets the Open Source Definition, where in it permits the users to use, change as well as improve the software, and then redistributes it. More often, than not, it is developed publicly and collaboratively. The reason behind the growth of demand for open source software is that it enables the customers to save up to $60 billion every year (2008; 2008).             The said strategy will help IBM to focus on the greater demand of the customers, thus, making the company more aware regarding the behavior of the customers. It is also important to consider that the said strategy will help to boost the image of the company towards their customers, due to the fact that the company is helping their clients to save money and effort. Reduction of the Cost of Service   Figure 3 Reduction of the Cost of Service                                           Figure 3 shows the reduction of cost and services strategy of IBM. The main weakness of the company focuses on the huge population with very high salary or pay. There is nothing bad about offering high salary or payment for the service or effort of the employees due to the fact that it is considered as one of the major driver of motivation inside an organization. As a result, it can help to improve the performance of each and every individual, and then later on reflect on the overall performance of the company. However, due to the different changes that are happening inside and outside the environment of the company, particularly during the time of global economic and financial crisis, it is important to focus on the negative impact of huge population and high salaried employees of the company, even though, they are considered as very talented and skilled employees. The company must focus on the fact that the human resource cost can affect the entire pricing strategy towards the products and services that the company is offering, as a result, the company will not be able to compete in terms of price.             In order to prevent the said future problem regarding the financial negative impact of having huge human resource, it will be important for the company to lessen the number of employees. On the other hand, outsourcing can be applied in order to save time, money and effort. Outsourcing is considered as a contracting activity with another company or person in order to do jobs function. As of now, most of the company is outsourcing in some and different ways. More often than not, the functions that are being outsourced are considered as a non-core activity to the business (2008). The said strategy will help the company to save money due to the fact that the outsourcing company will be directly responsible in the process of selection, hiring and positioning employees to a given project.             On the other hand, the company can also take advantage of the low labor cost in China. This can be done by establishing production sites and headquarters in China. The per-hour cost for an employee in an American or European plant is between $15 and $30 or evens more, and this is mainly dependent on the decision of the workers’ union in the plant, the location and degree of welfare the plant provides. On the other hand, in China, the average per-hour cost for a worker in a Chinese plant is below 1 dollar, showing a dozen times lower compare to the two first mentioned nations ( 2004).             The said strategy will help the company to lessen their labor cost that will later on reflect in their production cost. In addition, it can help the company to focus on the competitive advantage that will focus on price differentiation. This is due to the fact that more and more people, especially those from developing countries that are looking for computers and IT-services that are affordable. By doing this, the company will be able to hit two birds in one stone, where in first it will help to lessen their production cost that will help to focus on the pricing strategy of the company; at the same time, focuses on the changing demands and behavior of the customers regarding their products and services.          Appendices   Appendix A: IBM: Background Information

Strategic Business Analysis of IBM

Strategic Business Analysis: IBM Table of Contents Introduction .. 2 Internal and External Factors Affecting IBM .. 3 ...

An Analysis of International Market Expansion of Taiwanese Fashion Brands Compared with the International Expansion of Western Brands

An Analysis of International Market Expansion of Taiwanese Fashion Brands Compared with the International Expansion of Western Brands           DECLARATION           Abstract   Globalising a fashion brand involves a complex and long-term process achieved through the determination of a contextually appropriate global brand strategy. A number of Taiwanese fashion brands have attempted or in the process of attempting to conquer the international market. Some have failed but there are also brands initially experiencing brand internationalisation viability. Since the direction of fashion brands is towards globalisation, it is important to determine the factors that led to the failure of Taiwanese fashion brands in the global market as well as the best practices derived from existing international fashion brands in achieving success in the international market. The research seeks to address this knowledge gap by comparing the internationalisation processes of Taiwanese brands seeking international status and international brands able to enter the Taiwanese market successfully. Results showed that developing brand strength and having a comprehensive global brand strategy are key elements to brand internationalisation.           Table of Contents Page Title Page                                                                                                                   1 Declaration                                                                                                                2 Abstract                                                                                                                     3 Table of Contents                                                                                                      4   1.0 Introduction                                                                                                         5 1.1 Background and Motivation for the Study                                          7 1.2 Aims                                                                                                         12 1.3 Objectives                                                                                                 13   2.0 Literature Review                                                                                               13 2.1 Working Definitions                                                                               13 2.2 Business Internationalisation                                                                 15 2.3 Global Brand Strategy                                                                            16 2.4 International Brand Strategy & Brand Environment                         20 2.5 International Fashion Market                                                                23 2.6 Taiwan Fashion Industry & International Market                              25   3.0 Methodology                                                                                                        26 3.1 Research Design                                                                                      26 3.2 Data Requirements                                                                         27 3.3 Data Gathering Method                                                                         28 3.4 Data Analysis                                                                                           29   4.0. Results                                                                                                                 29 4.1 History of Taiwanese Fashion                                                                29 4.1.1 Early Taiwanese Fashion                                                        29 4.1.2 Modern Taiwanese Fashion                                                    32 4.2 Case Study of Taiwanese Brands & International Expansion           33 4.2.1 Shiatzy Chen                                                                            33 4.2.2 Jamei Chen                                                                               38 4.3 Case study of Western Brands Going Into Taiwan                             41 4.3.1 LVMH (Louis Vuitton-Moet Hennessy)                                 41 4.3.2 Calvin Klein                                                                              45   5.0 Analysis and Evaluation                                                                                     48   6.0 Conclusion                                                                                                           57                                                                                                       Appendices                                                                                                                65     1.0 Introduction The fashion industry in Taiwan has come a long way and it has developed into an endeavour that integrates traditional culture and the country’s international perspective. With the internationalization of fashion, Taiwan is looking forward to enhancing its participation in the international fashion industry by looking into the possible upgrades into the cultural substance of fabric, textile and design coming from the domestic fashion industry. The (2007) has shown support for the internationalization of Taiwan’s fashion industry that it has encouraged and sponsored fashion shows to motivate local fashion firms to design fashion representative of the modern Taiwan. Apart from fashion shows, other means of supporting the internationalization of the fashion industry include the development of fashion design teams, international exchanges through exposure to global fashion industry, and fabric and textile development to contribute to the dynamism of the fashion industry. After years of effort towards the development of Taiwan’s fashion industry in preparation for its internationalization, improvements are visible. Fashion has already become an important factor on our society today, which means market support for both established and emerging fashion brands. Following the wave of globalization, fashion companies are building marketing plans in preparation to introducing their brands in the international market. The internationalization of Taiwan’s fashion brands fits the contemporary business context of globalization so that an outward looking perspective is the way to go for local fashion brands. According to  (2001), “An international perspective on marketing management is critical in the contemporary era of global competition.”(). On the side of the international market, consumers are awaiting innovative and unique brands from local fashion companies such as Taiwan while on the part of local fashion companies the international market is a very attractive potential market. The growing interest of fashion companies to engage in the international market, a number of Taiwanese fashion companies are leaving Taiwan to display their brands in other countries. However, the success rate is extremely low. Nevertheless, with the support that the fashion industry is receiving from the Council of Cultural Affairs and fashion companies, the endeavour should eventually meet success. Since internationalization of Taiwan’s fashion brands is a learning process, it is important to draw lessons from fashion companies that attempted to introduce their brands in the global market but failed as well as the best practices to be drawn from fashion companies that have successfully introduced their brands into the international market.   A review of successful international fashion enterprises shows that their products mainly concentrate on design and quality. Fashion companies such as Gucci, Louis Vuitton, Prada and Channel have established their presence in the international market due to their unique designs and high product quality. The brands have become icons in the international fashion industry propelling the fashion companies as big players in the international fashion arena so that their designs have revolutionized international fashion and determined changes in fashion trends. Fashion companies seeking entry into the global market can draw important lessons from the strategies of these companies. Important questions to ask include how these companies managed to globalize their fashion brands, how these brands influenced international fashion trends, and the best practices of these companies in globalizing their fashion brands. By addressing these questions, new entrants and existing fashion companies in Taiwan are able to follow the steps of these global fashion companies to establish their brands in the international market. However, since existing international fashion companies usually operate in a different business context in terms of geographic location of the initial markets, marketing technologies available in the home country, and their level of acceptability to the international market, not all of the strategies that worked for successful international fashion companies work for the Taiwanese companies. Taiwan’s fashion companies seeking entry into the international market will not necessarily achieve the same success as the global companies. As much as best practices are derivable, the application of these by fashion companies in Taiwan needs to be made contextually so that the actual marketing needs and objectives of the company are addressed.   In this study, the internationalization strategies that match the different needs and objectives of fashion companies in Taiwan will be investigated in order to provide internationalization best practices based on the context of Taiwan’s fashion industry. The investigation will be accomplished through the comparison of the business plans of two successful fashion enterprises in the international market and two unsuccessful fashion companies from the Taiwanese market. The comparison covers the advantages and disadvantages that these firms experienced by following their business plans.    1.1 Background and Motivation for the Study The most successful brands in the fashion market today are normally historic brands. These took years to establish and years of gaining experience to able to build successful brands. Brand building in the international market poses a number of challenges especially when companies have to adjust constantly to market movements. According to  (2005), “movements are always challenged by counter movements; the familiar and the alien crop up, form a scenario, and together contribute to the drama of the twentieth century.” ( 2005) The strength of fashion brand equity is determined by the years of operation of the company that coincides with the richness of its experience in introducing international fashion brands. Movements in the international fashion industry are distinguishable into FOUR generations ( 2005; 2006). Enterprise established in different generation, their designing idea and business strategy differ. The following four generations differ in the establishment of different brands and the effects to these companies, respectively [See Table 1.1 in Appendix]. l   Hundred Years Brand (1800-1899) : Clothes that were mostly custom-fitted to individual consumers characterize the fashion established in this generation. The main material would be leather because this is the common material during this time apart from its utility and protective purposes. Clothes were also mainly hand made with traditional sewing skills. The main market at this time is normally the noble or rich man (2002). These traditional skills of cutting and designing directly affect the image of the companies, which were established during this generation. Since the traditional clothing companies mainly concentrate on customized or specialized cutting and design, the result are high quality and well-designed products. During this time, companies still had not formed their own brand so each product they made was independent. l   Historic Brand (1900-1960): 1900-1960 is a very important revolution in fashion history because manufacturers became more creative in the design of their clothes. To stand out in this generation, companies had to create their own unique product lines the process later on became associated with ‘BRAND’. Fashion companies focused more on ‘creative design and new era outline’ or the process of ‘INNOVATION’ (2006). Several renowned fashion companies exemplify the development during this period. In 1910, CoCo Chanel introduced the revolutionary concept of new “ideas, experiments, and Clean outs.” The owner and designer of CoCo Chanel “ruthlessly discarded everything which she considered superfluous in order to expose the substance of a garment that modern women could wear.” ( 2005 By 1947, Christian Dior brought in the idea of ‘New Look’. According to business information centre, “Christian Dior’s success is guaranteed when he ‘propositions’ women with fashions that they cannot refuse. Following years of austere fashion, he presents tightly fitted bodices with are difficult to move in, long, full skirts-or pencil-slim ones-which are utterly unsuitable for work, and accessories that have no function. Dior states simply. “I wanted to make women beautiful again.” During this period, invented the “MINI SKIRT” (2006). All this new ideas propelled the fashion market towards a new generation. During this time, enterprises were normally operated by the designers themselves or as a family business. l   Trendy Brand (1961-1989): Designer clothes during this generation were suited to the living style of the market in the local market where the fashion company operated. As an example, Ralph Lauren represented the American fashion lifestyle, Dolce & Gabanna represented the fashion sense of Palermo, and Vivienne Westwood represented the trendy UK Punk. In Asia, there was Yohji Yamanoto who represented the fashion of the Far East ( 2005). The proliferation of the different brands commenced brand competition motivating fashion companies to seek new and bigger markets. Most of the established fashion companies already had plans to target the international market. However, the feat involved massive amount of investment and a complicated retail management system. This meant that designers needed to work out a good management system to able to bring their product to next level. l   Global Brand (1980-2002): Starting in the early 1990s, propelled by the inevitability of globalisation, fashion companies were not just aiming to expand their business into the international market but also seeking to establish a globalization management system to support their internationalisation endeavours. In operating an international brand with a global management system, fashion companies needed more investment to be able to bring them to the international market. To achieve all resource requirements, the company must seek financial support from other business enterprises through joint venture or other forms of business partnerships. With this support, marketing support for brands on the international market should be able to meet successfully their targets. A review of the Taiwanese fashion market shows that local fashion enterprises started to establish their own brands since the early 1980s [See Table 1.2 in Appendix]. In the study made by  (2000), they described the early Taiwanese fashion business environment as “Fashion shop management”. In the period from 1950-1960, the fashion market had no space or opportunity for development since the Ministry of Economic Affairs was still unsettled about its role in enhancing the fashion industry. As the early 1970s approached, following the development of the financial market, Taiwanese residents achieved the capability to look for better quality of life translated into an increase in demand from the fashion industry. Taiwanese fashion companies started to import different fashion products from another country to satisfy their needs. Due to this sudden high volume of market demand and the potential of the Taiwanese fashion market, local fashion enterprises achieved the idea of establishing their own brand. As the early 1980s approached, following the successful pick-up of the “Brand” idea, Taiwanese designers invested artistry and capital into their own production line and established their own brands as well. Individual fashion designers established the earlier Taiwanese fashion enterprises so that the firms are linked to the designer and vice versa. The earlier designers who established their brands in the Taiwan fashion market were (1980),  (1982) and  (1978). The younger generation fashion designers were Kevin Lee, Isabelle Wen and Jamei-Chen. Due to the influence of the globalization trend, some of the Taiwanese domestic designers tried to integrate into the worldwide fashion market. However, in considering the complexity of operation and staunch competition among international fashion brands, domestic designer brands still have a wide room for improvement by learning from outstanding international brands. Based on the status of operation of Taiwanese designers, as shown in Table 1.2 above, it shows that the domestic designer brands remain undeveloped in their entry strategies in the international market. Hence, by investigating the operating methods and logistic of Taiwanese fashion brands separately from the successful international fashion brands, the manner that these international fashion brands managed to become global brands and the success elements of marketing would help emerging fashion brands to determine the ways they can successfully conquer the international fashion market and compete with existing global brands.             Aims This study aims to provide recommendations to the Taiwanese fashion enterprise on the strategies they can use depending upon their business context in successfully entering the international fashion market by analyzing and comparing the brand operation strategies of the different international fashion brands in order to improve their competitive strengths and enhance their international development. Specific aims include the following:  1. Analyse and study the ideal entry mode of firms to the international marketplace. 2. Determine the most effective entry mode for Taiwanese fashion brands in entering the international fashion market. 3. Identify the focus points of various international market entry strategies for global brands.   4. Understand how international fashion brands adapted to the “globalization” and “localization” issues in translational operation. Study results should show the best practices in market entry strategies into the international fashion market and reveal the main factors for those successful international brands in managing their brand globally. Moreover, the relevant suggestions should be provided to Taiwanese fashion businesses by analyzing and comparing the brand operation strategies among different fashion brands in order to improve the competitive strengths of Taiwanese fashion business step onto international market.             Objectives In accomplishing the research aims, the study proceeds with the guidance of the following objectives: 1.      Discuss the definition, function and issues about international fashion ‘Brand’ and the current market status of fashion brands to provide a contextual and theoretical foundation for the study. 2.      Discuss the market entry strategies of business internationalization. 3.      Discuss the respective strategies of two foreign companies and two Taiwanese fashion companies. 4.      Compare the differences between these strategies in terms of the advantages and disadvantages. 5.      Discuss the international operation of these brands. 2.0 Literature Review 2.1 Working Definitions According to Martin Thoma, brand is “the sum total of all that is known, thought, felt and perceived about your company, service or product” ( 2006). This definition implies several things. One is that this determined by the market so that to a certain degree, companies do not hold any control over the feedback of the market over the brand. Another implication is the recognition that the market does not make mistakes. Business firms need to accept market feedback as it is. Still another implication is the changeability of brand feedback. Even if business firms cannot completely control consumer feedback on its brand, it can manipulate market perception by building on the content and innovative expression of the brand. Lastly, another implication is the fact that brand cannot be completely owned or controlled by any single business firm but this can be developed, managed and influenced. Kristin Zhivago discusses brand as “not an icon, a slogan, or a mission statement. It is a promise—a promise your company can keep…This is the promise you make and keep in every marketing activity, every action, every corporation decision, every customer interaction” (2007) This definition connects the business firm to customers through the fulfilment of a promise. A company offers a promise to potential customers so that they develop expectations that their payment of price would be traded with the value promised by the business firm. In the case of the fashion industry, brand pertains to the overall perception of the market of the clothing line of the company. This is also the promise that a fashion company offers to the market, such as high quality and trendy clothes for an affordable price, which customers expect to obtain in exchange for the money they pay in purchasing clothes from the company. Concurrently, branding refers to the process of creating products and services as well as business firms into brands. Martin Thoma  defines branding as “the process of making products and companies into brands…” or “the consistent and disciplined way we communicate a brand’s essence to the public—employees, shareholders, vendors, customers” ( 2006) This implies that branding is the way that business firms create and influence a unique and cohesive customer perception of the company or its products. This further implies that this process should result to the establishment of the distinctiveness of the brand.    In relation to the fashion industry, branding is the aggregate process of building the distinctiveness of the brand to the market so that if consumers see, read or hear the brand there is an instant and automatic association with a unique value or feature of the brand. Chanel as a brand represents simplicity and class. The brand would also be associated with the enduring ‘little black dress’ concept. 2.2 Business Internationalisation Contemporary business environment revolves around globalization implying intensified competitiveness for domestic and international firms. Surviving in a competitive business environment means that individual firms need to establish a competitive advantage over their competitors to gain a significant market share necessary in securing the viability of the company. Competitive advantage finds expression through differentiation, cost leadership or a combination of both with the nature and characteristic of the strategic integration dependent upon the business context of individual firms (1998). Brand is a form of differentiation. In the case of domestic companies experiencing the saturation of the domestic market due to the increasing number of emerging new companies making the competition stiffer, companies need to look for alternative markets and what better way to expand than to the global market. On the part of international companies, the increasing trend of internationalization by domestic companies challenges them to aggressively establish their foothold in the international market and search for new markets as first movers. ( 2004) Overall, competition in the international market is complex and full of challenges making it difficult but rewarding for domestic companies to expand globally. In application to the Taiwanese fashion companies, expansion into the international market involves the consideration of market demands, ideal global brand strategies, and the customisation of these strategies based on the particular needs, objectives and resource capabilities of the domestic company (2006). 2.3 Global Brand Strategy             Developing a brand is something not dependent on chance. This is because brand constitutes a construct and not existing on its own. Brands exists from being developed, stimulated, applied and manipulated by business organisations working towards the objectives of creating a worthwhile experience for customers to induce them to engage in behaviour suitable to the organisation. ( 2000; 2001) Global branding requires careful and diligent planning and preparation that occurs in a cyclical manner [See Figure 1 in Appendix]. Global brand strategy is a cycle that commences with the understanding of the business strategy of an organisation. This business strategy is directed towards particular targeted consumer behaviour. This means that the determination of the success of the business strategy depends upon the achievement of the desired consumer behaviour. If the targeted consumer behaviour is to purchase the goods or services marketed by the company and the company experiences an increase in sales after implementing the strategy, then the increase in sales attributed to the strategy defines its success rate. If the targeted consumer behaviour is to maintain purchasing the goods or services offered by the company even with an increase in price, then the achievement of increased revenue despite price increase constitutes the successful achievement of the objectives for implementing the strategy. In persuading consumers to exhibit these behaviours, brands work as an important tool in convincing consumers to support the objectives of the company through an exchange of value for value expressed through the brand. Overall, these relationships mean that business strategy holds a direct and influential link to brand strategy. (2003) Based on the brand strategy cycle, the next consideration is brand expression, which constitutes the translation of the business strategy into an expression for communication to consumers. Brand expression is defined as the manner that the products and services of the company together with communications exhibit and articulate brand essence. In accomplishing this process, business firms need to consider the available materials in articulating brand essence, choose the materials to use, plan execution and implement the plan. Although brand expression involves promotions and advertising as tools, this comprises the aggregate experience of consumers over a brand. (2003) After accomplishing brand expression, the next thing to consider is the marketing process. This involves the utilisation of the marketing mix in order to translate brand expression into an actual product or service, assigned with a particular price, saleable in defined marketing channels, and introduced to the market through communication endeavours. Consistency of the translation of brand expression into marketing mix is important because this reflects on the extent that consumers are offered the intended brand experience. In case any inconsistencies exist in the transition, the company would not be able to achieve its desired customer behaviour. After the transition of brand expression into the marketing mix, implementation follows. This involves the production and delivery of products and services together with the accompanying message to the targeted consumers. It is in this stage that the company is able to assess whether the experiences of consumers of the brand meets the intended purpose of the brand strategy. Since this is a process, business firms may have to go back to the initial processes to make the necessary adjustments or changes in case the initial attempt fails. However, this could have a positive or negative impact on the market or the company so that it would be ideal to succeed in the first attempt to create a positive initial impression on the market. (2003) Brand perception follows marketing. Although the unique brand essence has been translated into a workable marketing plan that was already implemented, this does not mean that the successful acceptance of the brand by the market is ensured. All the resources utilised into the development and execution of the brand may fail depending upon consumer perception of the brand. Since consumer perception cannot be precisely determined, companies can only achieve expectations of market perception by investigating the possible impact of its brand marketing by learning the nature, characteristics and propensities of the market. ( 2003) This means that companies should obtain as much information on the market to be able to predict consumer response and perception of its brand-marketing feat. In relation to market research, Van Gelder (2003) provides that branding perception should comprise the initial stage of the brand strategy cycle instead of brand expression. He argues that this should be the case because marketing managers should have an ample understanding of consumers even prior to the commencement of strategy formulation. In doing this, the strategy is sure to become market-oriented because of the sufficient appreciation of marketing managers of the specific context of consumers. The stage of brand expression then should be considered together with the issues of research and development, media channels and distribution in order to develop a more cohesive brand strategy.        In considering this difference in opinion, the brand strategy cycle that works for the company depends upon the context of the firm. The first perspective placed brand expression as the first stage of the business strategy because this approaches the endeavour as a strategic and organised process. This means that the process rightly starts with the development of the distinctive value represented by the brand before communicating this to the market. However, this assumes that the company has prior knowledge of the needs, expectations and motivations of the market. If a company engaging in brand strategy has prior information on the market then it can proceed with brand expression as the first step. The second perspective asserts brand perception as the initial step because it approaches the activity from a marketing perspective. Since the primary concern is matching the expectations of consumers with the brand sought to be introduced, the company should consider gathering information on the dynamics of consumer perception prior to the development of the brand strategy per se. Companies needing to have initial information on consumers benefit from accomplishing brand perception prior to brand expression. After the process of brand perception or marketing, depending upon the approach used by business firms, the next phase is brand recognition. This is commonly equated with brand awareness among consumers. However, brand recognition is more than just consumer awareness of the brand. Brand recognition is the extent that the market relates with the brand or the way that they discriminate between competing brands. This means that brand recognition is how consumers see themselves in relation to the brand, bordering on whether they will or will not purchase the product, and the relationship of one brand relative to competitor brands, reflecting on the determination of a better or preferred brand. In this market dependent process, companies hope that consumers relate positively and strongly to the company brand as well as consider the company brand a better option relative to its competitors. Since brand recognition is a cognitive activity, this is measured by sales and the extent of customer base of the firm. Finally, the last stage is consumer behaviour. This means that the brand should receive appreciation from the consumers to an extent that they are willing to part with their money in exchange for the product or service of the company and they end up satisfied after the value exchange. If this is achieved, then the company has successfully completed the brand strategy cycle by achieving its purpose. However, if the brand has not received the expected level of customer appreciation, marketing managers have to go back to through the stages to determine the reasons for the disparity in actual and expected results and then start the cycle all over again. (2003) 2.4 International Brand Strategy & Brand Environment             An international or global brand pertains to brands present in all or almost all markets in the world as well as brands with universal appeal (2003). However, achieving brand presence in the international market involves an understanding of brand environment [See Figure 2 in Appendix]. Brand environment refers to the aggregate factors that influence brands and brand strategy as well as the efforts invested by the organisation in developing the brand. Brands operate in specific environments involving two major areas. One area covers the internal factors particularly the elements of brand strategy and the other involves external factors such as local and international industry regulation, global competition, market characteristics, media concentration, and other similar factors. (Randall, 2000)   To understand the role of brand environment in global brand strategy, this could be perceived as consisting of the brand—defined by perception, expression and recognition—flanked by both internal and external elements that influence the brand. It is only when these elements are taken into consideration that management is able to understand the entirety of the brand proposed and the manner that is affected in the various markets. After recognising the necessity of considering brand environment, the next issue that marketing managers need to consider is to identify these elements and develop policies that unlock the overall potential of the brand in a specific international market as well as in different markets simultaneously. (2001)This means that the marketing manager should develop a framework that applies to the different markets to have a common foundation for brand analysis. The framework ensures consistency in the brand essence being communicated across the different cultures but the consideration of the particular elements intervening in the brand’s dynamics in a specific market ensures customisation for optimisation in the areas of brand perception, brand recognition and consumer behaviour.    Market comparison allows marketing managers to understand the way that different markets work, which is helpful in determining the means of managing the global brand. Comparison is achieved by identifying the similarities and differences in brand strategy, expression, and marketing and determining the extent that these indicate brand divergence and reasons for the deviation. A consideration of the situational factors involves the utilization of brand perception and recognition to determine the extent that the brand is perceived in a particular market and the causes of this divergence. This contextual analysis of markets based on the brand strategy framework provides companies with a positive reception of the key elements of its brand relative to the manner that the brand is perceived in different markets around the world. The thorough understanding of the relationship of environmental factors and brand strategy elements provides marketing managers with the basis for planning and strategizing for the branding process in the local, regional and international scale. It is only upon the acquisition of this information that issues of brand extensions, portfolio rationalization, and alliances or acquisitions are timely considered. (2000) (2003) proposes a global brand proposition model that covers internal and external analyses. Internal analysis provides information on the manner that the local and global organizational constructs influence the stages of brand expression or various brand expressions for different markets. This means that the aspects of business strategy, organizational structure, corporate culture, brand significance to the business, and the links between the local and global brand management groups contribute to moulding brand expression spheres. The particular elements should in turn support and direct marketing activities. The manner that brand determines its edge over competitors directs product development, channel options, promotions, staff demeanour and even supply chain management. A comprehensive and precise understanding of the manner that these processes connect enables firms to provide consumers with their expected brand experience. External analysis centres on the manner that conditions serve as lenses with which consumers look at the brand and the extent that this vantage point influences the understanding of consumers of the brand singly or relative to other competitor brands. Particular situational factors influence brand perception in certain ways such as influencing the brands salient points in a given context. Brand recognition in turn links perception with the situational environment, particularly the level of competition. The result of the external analyses offers new insight to internal analysis. Considering the dynamics of brand perception provides points in commencing brand strategy planning. Since brand perception constitutes the meaning and importance of a brand to consumers, business firms would want to influence this stage. The model constitutes a continuing feedback loop that helps in refining the international brand proposition. (2003) 2.5 International Fashion Market  (2007) provides that the luxury goods market in the global sphere earned more than $170 billion in 2006 constituting a slight increase from $169.9 in 2000. Dividing the amount into regional and country contributions, Europe contributed 40 percent, the United States added 24 percent, and Japan contributed 17 percent. The remaining percentage is spread across the other regions. In relation to contribution to global turnover in terms of customer nationality, the Japanese comprise the biggest number of consumers of luxury goods with 26 percent. Although Europe contributed the largest amount, the Japanese comprise the highest number of consumers because non-European travellers purchase luxury items while on tour to take advantage of lower prices relative to the prices in their home countries. In terms of the competitive environment, (2007) also provides that the leading fashion houses need to deal with the intensifying competition due to a changing market. Consumers are now inclined towards brands that balance fashionable with affordable instead of wearing only designer articles from a single fashion house or wearing exclusively designer fashion. The new trend for fashion companies is fast fashion or selling through mass-based retailers. As an example, the fashion designers and who are distributing their clothes through retail outlets such as Esprit and Mango. Moreover, fast fashion involves the unique selling idea of providing a continuous assortment of clothes to retail stores. This brings customers regularly to the retail stores to check out the new arrivals almost every week. With the proliferation of fast fashion companies, the large fashion houses needed to shift their strategy by making easy to sell goods that integrate style and marketability. However, large fashion companies retain their traditional fashion signatures while expanding into easily marketability items to retain their market base while tapping into the emerging markets. By doing this, large fashion houses are able to observe fashion trends popularly demanded as reference for their clothing lines for mass selling.   In relation to the current study, the general characteristics of the international fashion market show several important implications for local Taiwanese fashion houses seeking entry into the global market. First is the demand for something new. Taiwanese fashion could be that something new that the international market is looking for. This means that it is timely for new entrants, offering new brands—expressed in new fashion designs—to enter the international fashion market. Second is the market trend towards stylish but affordable clothes. New entrants into the international fashion market meet both these demands. Taiwanese fashion provides new styles because of the different inspiration for designs and the cost would be significantly less than the price of established international fashion houses because these are new brands ( 2007). This means that Taiwanese fashion companies need to focus on their global brand strategy to successfully introduced their brands in the international market, especially with the support of the Ministry of Economic Affairs. 2.6 Taiwan Fashion Industry & International Market According to the  (2004), the Taiwanese fashion industry is yet to make its mark in the international market. This is because of the divided opinion among fashion designers and critiques of the direction that Taiwanese fashion should go in internationalization. On one hand, some believe that Taiwanese fashion should stick with its oriental roots and make this as its selling point in the international market. On the other hand, others also believe that the fusion of Taiwanese designs with international designs would propel the entry of Taiwanese fashion brands in the global market, particularly with most Taiwanese fashion designers educated in foreign fashion schools, necessitating a mixture of design influences. After a year, the  (2005a) reported that two designers, Shawn Pan and Chien Yu-feng who use their names as brands, were the first people to present their clothing line during the Paris Fashion Week. This constitutes a step forward for Taiwanese fashion brands as firms and designers realize the possibility of existing alongside international fashion brands. Moreover, Taipei Times (2004) also reported that global perception over Taiwan is a venue for international designer brands. Local fashion brands need to make that effort to change global perception from Taiwan being a fashion hub for international brands, to a fashion hub for Taiwanese brands with high degrees of acceptability in the global market.   3.0 Methodology 3.1 Research Design To accomplish the aims of the study, the research will utilize the descriptive research approach. This is a type of study that tries to explore the causes of a particular phenomenon, present facts concerning the nature and status of a situation, as it exists at the time of the study, and portray an accurate profile of persons, events or situations (1997; 2003). The purpose of employing the descriptive method is to capture the nature of a situation, as it exists at the time of the study and to explore the cause/s of particular phenomena ( 2002). The approach undertaken for such type of study is appropriate for a number of reasons. The descriptive approach is quick and flexible giving rise to three advantages: first, when new issues and questions arise during the duration of the study, this approach allows a further investigation. Secondly, when there are unproductive areas from the original plan of the study, the researcher can drop them; and thirdly, the approach is more practical in terms of time and money. To derive required data, the qualitative research method will be utilised. This method used to elicit detailed verbal and written descriptions or accounts of characteristics, cases and situations. (1995) This approach is appropriate for the study because the research aims to elicit accounts of the physical education activities of schools particularly the physical activities to determine effectiveness in promoting health consciousness. This supports the derivation of comprehensive research data by covering the immeasurable aspects of the research such as the perceptions, attitudes and motivations of students, teachers and school administrators. (2004) Qualitative research approach is used to answer particular issues such as understanding what is happening, determining complexities and limitations, and assisting in the interpretation of situations. This approach works effectively in areas involving an in-depth look into implications or impacts not susceptible to quantification. Another benefit of the qualitative approach is the gaining of understanding on the parties affected by situations and the extent of the effect of certain elements. Still another benefit is the provision of reasons for the occurrence of situations and the respective impacts. Lastly, this approach also supports the derivation of conclusions and recommendations on the manner of enhancing systems. ( 2002) 3.2 Data Requirements Data requirement for the research covers both primary and secondary sources.  Secondary data comprise of concepts, definitions, past statistics, and research results contained in raw data and published summaries to serve as the foundation and context for the research. Secondary data fall into three main subgroups: documentary data, interview-based data, and those compiled from different sources. Documentary secondary data are derived from primary data collection methods while interview-based secondary data are collected through questionnaires that have already been analysed for their original purpose. Primary data comes from the results of the semi-structured interview with the fashion designers with brands in their namesake or the top managers of the Taiwanese fashion companies. Secondary data works as foundational support for the research while primary data serves to confirm the validity of the hypothesis, invalidate existing knowledge, and confirm some aspects but invalidate other separable aspects of theories based on the context of empirical evidence.  3.3 Data Gathering Method For this study, the semi-structured interview method will be used to gather pertinent data. Interview is a data-gathering tool that elicits insights, expands the understanding of concepts, searches for exceptions to general rules, and document personality and experience differences. (Rubin & Rubin, 2005) Semi-structured interview, that involves using a questionnaire as guide but allowing participants the opportunity to expound on significant answers, is a strategy that allows a researcher to have more control over the research process while at the same time obtaining wide-ranging data (Schostak, 2006). The semi-structured interview method will be used to achieve a comprehensive qualitative and descriptive data on the performance and brand strategies of Taiwanese fashion firms and international fashion houses to derive effective means of introducing Taiwanese brands into the global market. Data will be collected by holding one-on-one semi-structured interviews with two designers or the top managers of Taiwanese fashion brands and the managers of two leading international fashion brands in Taiwan. A set of questions will be prepared to serve as guide in the interview process but secondary questions will be asked to confirm the information given or to obtain clear, rich and in-depth data to obtain answers sufficient to address the research aims and objectives. 3.4 Data Analysis Data analysis will be accomplished by looking at patterns and emerging themes, as points of comparison, from the responses and eliciting the implications of these patterns and themes on the research problem. Deviations from the patterns and themes would also be determined together with the factors that explain the atypical response. Interesting answers and ideas would also be noted and the manner that these help in clearing up the research predetermined problem. The implications of the patterns to the possible need for additional data as well as the extent that the answers corroborate the experiences of Taiwanese fashion brands will be considered. 4.0. Results 4.1  History of Taiwanese Fashion 4.1.1 Early Taiwanese Fashion Taiwan has inherited the Chinese tradition of textile development, embroidery and the integration of symbolism into the designs. However, despite the Chinese legacy of traditional clothing and designs, tradition-inspired clothes comprise the most abandoned fashion on modern Taiwan. This is because western fashion has been widely embraced by the Taiwanese for everyday use such as in schools and the workplace because of the attachment of the benefits of modernity and efficiency to western clothing when compared to the restrictiveness of traditional clothing. Clothing fashion in Taiwan is trapped in between traditional and modern fashion so that modern clothing worn by the younger people and the traditional clothing worn during special occasions or ceremonies. (1998) In terms of fabric or clothing material, Taiwanese clothing tradition used natural materials such as cotton, hemp and silk. Hemp and silk have been widely cultivated in Taiwan for use in clothing. Hemp was the popular material for clothes since silk as highly valued and reserved for royalty or the wealthy. With the onset of trade with India, Taiwan adopted cotton as an alternative fabric to the hemp. Cotton clothing experienced massive demand requiring the need to import cotton fabrics and clothes from India and the United States. (1987)   In terms of design, earlier clothing in Taiwan were deigned for utility and durability  with men’s clothing coloured in black or blue with simple designs while women’s and children’s clothing were more elaborately coloured or designed. Since majority of the Taiwanese population belong to the working class, the demand for comfortable and efficient clothing led to the demand for hemp and cotton working clothes. People working in the agriculture, fishing or manufacturing industries primarily don black or blue clothes made of hemp or cotton with jackets buttoned in the centre or right side. Due to limited capability to purchase clothing, very little amount was allocated for clothing so that a single set of clothing was considered sufficient. Although, people in Taiwan also inherited Chinese clothing tradition, the limited land space of the island spurred Taiwan to import fabrics from China, particularly from Zhejiang or the Eastern Guangdong provinces. The fabrics then undergo dying, cutting and sewing in Taiwan. (11987)  In terms of patterns, earlier clothing was patterned after the preferences of the sub-ethnic groups in Taiwan that differ from the colours and patterns of groups in mainland China. Traditional clothing used for special occasions or celebrations were made of brighter colours and colour combinations. The sub-ethnic group are identifiable by the difference in the weaving patterns and appliqué techniques used in the clothing. Taiwanese traditional fashion are more colourful and elaborately designed when compared to the everyday wear of the people. (1987)  In terms of the cut and stitching, traditional and earlier Taiwanese clothing involved minimal cutting or stitching since clothing design involved clothes to hang from the shoulders and tied with a sash at the waist. Garments were mostly loose and undraped to fit the body. Clothing consisted of a skirt, trousers and tunic simply designed with little stitching. The cut and stitching as well as the amount of fabric used depended upon the class of the individuals. Working class individuals had to contend with a skirt or trouser and jacket combination but the wealthy class demanded greater complexity in clothing construction that involved distinct and embellished designs with matching accessories. (1987)       With regard to embellishments, embroidery constituted the primary mode of decorations. Embroidery is highly valued as a skill in women. There are eight basic stitches used to create any design. These are usually used in combination to capture in detail objects or things. Embroidery designs and techniques were handed down the generations of women. Embroidery has close links to symbolism so that certain plants and animals represent the different wishes or ideals. There are also objects used to symbolize status in life or hopes such as long life and happiness. (1987)  In relation to colour, there is a common recognition of the symbolism of colour regardless of economic class, even if the working class have limited means of expressing their colour symbolisms. Blue, the most common colour represents neutrality and dignity. Powerful symbolism is accorded to the colours white and red. Red represents auspiciousness particularly the events related to life and fertility such as births, weddings, New Year and festivals. White is the symbolism for sorrow and death. In relation to accessories, traditional practices involved the adornment of trimmings primarily for protection. Bells are tied directly to the clothing or to a string attached to the clothing to ward off evil spirits. Gold and jade charms are also worn for protection by children and as clothing accessory for adults. (1987)    4.1.2 Modern Taiwanese Fashion Modern Taiwanese fashion emerged only in the 1980s with the decrease in import tariffs. The Taiwanese population embraced western fashion, mainly coming from Italy and Hong Kong. In the 1990s, imports from Japan intensified with Sogo, a Taiwanese-Japanese retailer opened a store in Taiwan to offer average priced clothing fitting the younger crowd. The positive response of the Taiwanese population of western fashion prompted American, European and Japanese fashion brands to introduce exclusive retail stores or sell their clothing through retailers such as department stores. Shopping centres in Kaohsiung, Tainan and Taichung retailed different western fashion brands. As air-conditioning systems became popular, working people also found the heavier western corporate attire acceptable drawing corporate clothing brands into Taiwan. (1996) Exposure to various western fashion, has spurred the interest of Taiwanese fashion designers to enhance their involvement in the industry. A number of Taiwanese designers studied abroad and established foreign names as brands. With international styles, Taiwanese fashion designers draw inspiration from both the Chinese tradition as well as global designs albeit in varying degrees. Consumers have also become more experimental in fashion with the relaxation of strict clothing guidelines in schools. (1996) Many designers have come back to Taiwan to introduce their brands while other initially introduced their brands in the international market. These efforts have met various results with some designers faring better than other designers do. However, despite failures the direction of Taiwanese fashion brands move towards the international market. 4.2  Case Study of Taiwanese Brands & Their International Expansion 4.2.1        Shiatzy Chen 4.2.1.1  Brand History Shiatzy Chen, one of the most successful Taiwanese fashion brand came about in 1978 with the establishment of the Shiatzy International Company Limited by the fashion designer Shiatzy Chen and her textile entrepreneur husband. The company remains fully controlled by the couple. The brand came about due to the artistry of Shiatzy Chen, who uncommonly was not schooled in fashion design. She got into the business while working at her uncle’s dress shop. It took the company ten years of work to establish successfully the brand in Taiwan. By 1994, the company has achieved a client list of 25,000 individuals a number of whom belong to high society such as the wives or mistresses of diplomats and government officials. The brand drew a market base of women within the 41 to 50 years age range. However, since then the company has sought to capture the younger crowd in Taiwan as well as expand into the international market starting with China and Japan. Today, Shiatzy Chen is recognized as one of the most successful Taiwanese fashion brands in Taiwan and even in China, Japan and in European fashion centres. (2007) 4.2.1.2  Business Strategy Competitive advantage is hoped to be achieved by the Shiatzy Chen brand through differentiation or the achievement of an edge based on the market perception that the company offers a different value from its competitors and this differentiating factor is preferred over the offer of its competitors. The unique value that the company offers is clothing for modern Chinese women, who are confident and proud of their ethnic heritage but animated by what the future brings. Shiatzy Chen appeals to women who recognise their past and hopeful for the future. 4.2.1.3  Brand Expression The Shiatzy Chen brand is captured by the phrase “neo-Chinese chic” (2005b). This expression pertains to clothes in tune with modern culture but retaining that distinct cultural inspiration that reflects the feminine spirit. Shiatze Chen collection includes full clothes or pieces usually made of silk and satin that can be mixed and matched to suit the taste and occasion. Vibrancy is achieved through the inclusion of neon colours such as pink, yellow and green with Chinese motif patterns. The Chinese inspiration can be found in the tops, vests or jackets buttoned on the side or in front and pieces with Chinese collar. Femininity is ensured with pieces that flatter the human body such as silk or satin mini skirts, nifty blouses and chic dresses. The integration of Chinese inspiration into clothes reflecting the feminine spirit makes Shiatzy Chen clothes modern and sophisticated. 4.2.1.4  Marketing Overall, the marketing goal set for the brand is to target the younger generation of women around the world since it has already gained the patronage of women in the 40 and above age group. The brand is directed towards this goal by concentrating on the clothing line, the price range, the channels of distribution, and the promotional activities. In relation to product, Shiatzy Chen adopts a respectful attitude in its clothing line reflected in the delicate fusion of western design, structure and processes to preserve the diminishing Chinese artisanship and skills into clothes, shoes, bags and accessories. The ability of the brand to capture that delicate fusion makes the product line unique. To achieve fusion, the company obtains artists and skilled workers locally and internationally to create brocades and embroideries uniquely designed for every piece of clothing or clothing line. Skilled artists contribute quality and sophisticated patterns and design converted into wearable clothing items. Designs and patterns coincide with the chosen theme for every season. With regard to price, Shiatzy Chen brand has been positioned to compete with domestic brands in Taiwan as well as international brands in Taiwan and around the world. To achieve this, price has been set to match its marketing as a luxury brand but affordable to its target market of modern and sophisticated women making its price higher that the low price of massively marketed clothes and slightly lower or equal to the price of international brands. In terms of promotion, Shiatzy Chen relies upon the Chinese business strategy of networking ( 2001) to achieve its customer base. To date, there are 25,000 Shiatzy Chen patrons around the world. This was achieved through the introduction of the company in 1994 of a membership program, the Shiatze Chen Art Club with members ranging from the different walks of life. Membership was offered to customers making purchases in any of its flagship stores or retail stores. In considering demographics, 98 percent of the members are women belonging to the 30 to 45 age group. Majority of members are professionals with high purchasing power followed by homemakers with high earning husbands or from wealthy families, and the remaining group are young students and professionals. Due to its wide network of loyal customers, positive feedback is spread by word of mouth or publications by members working in the communications industry. The company also hosts its Creative Fashion Show held twice a year in Taiwan to pleasure its customers with new designs. With regard to place, Shiatzy Chen sells in 48 channels around the world constituted of 23 exclusive boutiques and 25 department store counters. To strengthen the brands global presence, the company opened a shop in Paris in 2001 located near the Louvre. It has also entered China by establishing a shop in Jinjiang, Shanghai in 2003. In the same year, the company opened its flagship store in a high-end location at Zhongshan N. Road. The company was able to open another shop in Beijing and a new shop at the Peninsula hotel in Hong Kong in the same year. By 2005, the flagship stores in Shanghai and Hong Kong at the Lee Gardens were established. (2007)         4.2.1.5  Brand Perception Building Shiatzy Chen as a brand commenced with the underlying principle of aggressive marketing instead of just depending on the clothes to communicate to consumers. Ina way, the company succeeded in marketing the brand since it has achieved positive response from consumers and fashion critiques. In Taiwan, the brand has drawn positive response from the market. This recognition is expressed in the status that the brand has achieved since the company was able to collaborate with the Taipei Palace Museum for the launching of its spring collection at the Jhih Shan Garden in 2004. In the international market, the brand has also achieved positive ratings in different countries. In 2004, the London Financial Times voted it as one of the most popular fashion brands. However, there were also negative responses such as the article featured in  (2007) that the fashion brand may be too sexy for the Taiwanese market so that the company eyes international expansion. This was spurred by the fashion show featuring its spring collection with models wearing miniskirts despite the wintry weather. Although, this does not constitute supported negative perception, this probably emanates from the traditional segment of the market preferring the traditional garb to the sophisticated fashion of Shiatzy Chen.   4.2.1.6  Brand Recognition In Taiwan, Shiatzy Chen is a highly recognized brand by women, especially professionals wanting to imbibe sophistication through their choice of fashion. This is expressed through its 25,000 loyal members regularly shopping in its boutiques and department store shops. Apart from this direct consumer recognition, the brand also achieved recognition through channels such as collaborations with other known companies such as its venture with Adidas for the latter’s Y3 collection. The brand has also been recognized by Vogue through the statement that "there is nothing in any market with her style at the international designer level." ( 2005b) This means that the loyal customers of Adidas and readers of Vogue recognise Shiatzy Chen brand.      4.2.1.7  Consumer Behaviour In 2004, Shiatzy Chen earned NT$750 million for the year. This constitutes a 15 percent increase from its turnover rate in the past five years ( 2005b). This means that more people are purchasing its clothing products or its loyal customers are perking up their purchases or both. Regardless of the reason for the increase, the increase in revenue means that the company is thriving as a business, with its sales coming from contributions of different markets, particularly in Taiwan, China and Paris. This further implies that the company has enough resources to support its international expansion. Another salient implication is the success of its local and global brand strategy in capturing the domestic market as well as consumers in other countries. 4.2.2  Jamei Chen 4.2.2.1  Brand History Jamei Chen started the label in 1987 as a single owner operated business. Brand development passed through different stages before eventually becoming a cohesive label. Apart from offering designs to the local market, the company ventured into costume design for Hong Kong movies such as ‘Red Rose, White Rose’ giving the designer exposure into theatrical or costume outfits. In addition, Jamei Chen was also engaged in Paris and New York fashion weeks. The company was first launched in a foreign market, through a store in New York in 1995. However, with conditions not meeting the expectations of the company, the New York shop was closed and the company concentrated in the Taiwan market. (2007) 4.2.2.2  Business Strategy Jamei Chen pursued differentiation as a strategy for competitive advantage. She has studied fashion design in international venues such as Paris and New York making her designs international. By introducing an international flare into the Taiwanese market, she expects to gain competitive advantage by being different relative to the oriental fashion brands in the market. 4.2.2.3  Brand Expression Jamei Chen as a brand is presented as ‘simple and elegant’ using precision cuts and well-selected fabrics. This is the value sought to be communicated by the Jamei Chen brand to its target market of modern women. This message is justified through clothes that are cut in a manner to fit precisely a woman’s body, made with fabrics of simple texture, and with elegant colour and colour combinations. Jamei Chen clothes are fit for casual or formal occasions so that the brand is attracting young professionals. ( 2007)   4.2.2.4  Marketing The marketing goal of Jamei Chen is to widen its market base to the older age group of professionals as well as to reintroduce the brand in the international markets of Paris and New York. In terms of product, Jamei Chen adopts the modern and international perspectives. Modernity is expressed through her clothes using simple but elegant fabrics, textures, colours and cuts greatly expressive of the technology available in creating new fabrics and designing cuts. Internationalism emanates from the global appeal of the clothes because of the faint expression of traditional Chinese design into the clothes. Chinese influences are observed through the value of disciplined precision observable through the clothes but the designs and patterns hold an international appeal.  In relation to price, Jamei Chen belongs to a price range above the mass produced clothes in the Taiwanese market. Since the brand has already been established in the market, it falls under the price range similar to other established Taiwanese brands such as Shiatzy Chen as well as international brands. With respect to place, Jamei Chen has established ten channels of distribution including exclusive boutiques and department store stalls. The company has established four exclusive boutiques and six department store distribution channels. The channels of distribution were strategically placed to cover the northern, southern, western and eastern areas of Taiwan to reach out to a greater portion of the Taiwanese market. In terms of promotions, the company holds a fashion shows every season to apprise consumers a preview of the clothes for the season. Apart from this, the company has also branched out the brand to cover cafes and tea houses so that people can enter the store without being pressured to make the purchase but still this allows the brand greater degree of exposure in the market. In addition, the brand also enjoys exposure in the local versions of international magazines such as Vogue, Cosmopolitan, GQ, Bazaar and Figaro. 4.2.2.5  Brand Perception Jamei Chen has been viewed positively by the market. This is indicated by the extent that the brand and clothing collection has been picked-up by popular fashion magazines. These media channels would not have featured Jamei Chen clothes if they perceived that the readers or the market in general would have a negative impression of the brand or the clothes. Moreover, the government also have a positive view of the brand since Jamei Chen was trusted to design and make more fashionable the uniforms of the Taiwan High Speed Railroad Corporation (THSRC). In addition, the brand has been in the market for twenty years and there is no indication that the market is tiring of the designs instead every fashion show is packed with fashion critiques and customers alike. 4.2.2.6  Brand Recognition The Jamei Chen brand is highly popular among young professionals within the age group 25 to 35 because of its modern, simple and elegant designs. It is also recognized as an established Taiwanese brand alongside other prominent local brands. The brand is also associated with Rein-Ai and An-Ho roads where renowned fashion houses have established boutiques. Its boutique strategically located in the intersection of these two roads has been featured as an architectural piece that houses the exquisite clothing that materializes the brand. 4.2.2.7  Consumer Behaviour  (2007) reports that the Spring-Summer collection of Jamei Chen was packed with a vibrant audience. Janet Hsieh the host of Fun Taiwan as well as the model  also visited the fashion show. Although the Jamei Chen website does not provide exact values of annual turnover, consumer behaviour is reflected in the fact that Jamei Chen is horizontally expanding into baby or infant apparel as well as into unrelated ventures of cafés and teahouses. 4.3  Case study of Western Brands Going Into Taiwan 4.3.1 LVMH (Louis Vuitton-Moet Hennessy) 4.3.1.1 Brand History LVMH was established in 1987 with the merger of Louis Vuitton and Moet Hennessy to propel the brand and the company into a top international seller of luxury products. LVMH holds the benefit of inheriting the brand renowned for craftsmanship and quality products such as Louis Vuitton for exquisite leather products and Moet & Chandon for delectable wines. At present, LVMH is a group brand representing 60 different brands covering fashion and leather products, watches and jewellery, cosmetics and perfumes, and wines. The brand has been present in East Asia, including Japan, Korea, China, Hong Kong and Taiwan since the early 1990s. ( 2007a) 4.3.1.2 Global Strategy Like other international brands, LVMH capitalizes on differentiation to enhance brand equity in the European market and establish the brand in the international market. Since LVMH is a generic brand covering different individual brands representing different products, the individual brands hold their own brand equity. However, LVMH integrates these brands through representation of all these brands under the description of luxury or high-end products. (2007c) 4.3.1.3. Brand Expression LVMH is all about quality artisanship and luxury. For fashion and leather products, the material representation of this brand communication is through the LV logo and monogram canvas seen in its popular leather bags and travel luggage. It is through these material representations that define the luxury-character of its leather products. Louis Vuitton clothes also express luxury and elegance with rich fabrics, plain colours and precision cuts.   4.3.1.4 Marketing Overall, the marketing strategy of Louis Vuitton is the saturation of international markets with its high-end products so that its appeal is towards the higher income groups in different markets. In terms of products, the company is expanding with 60 individual brands under the LVMH brand involving both vertical and horizontal expansion. Vertical expansion includes the merger of individual fashion brands such as Givenchy and Marc Jacobs with LVMH while horizontal expansion involves the integration of brand for different products such as Moet for wines, Kenzo for perfumes, and Berluti for watches and jewellery. All the individual brands embody artisanship and luxury. With regard to price, the target market segment comprises the higher income groups so that the price matches the value of luxury offered by the company. The company does not offer price cuts or place items on sale so that every item purchased by customers retains their value throughout the next seasons. This contributes to the high-end price of LVMH goods. In terms of place, LVMH distributes its products through exclusive boutiques and high-end department stores with the stalls independently managed with LVMH providing their own manager and sales personnel to handle department store retailing. This was established as the mode of retailing to meet the issue of product piracy. Encouraging customers to visit its exclusive shops and high-end department store retailers assure consumers assured of the originality of the products they purchase. With regard to promotions, the company had a head start of decades to establish their brand in the international market. The promotion of the brand is attributed to the patronage of well-known wealthy families and celebrities publicly documented in fashion magazines, feature articles in newspapers, movies, and awards. The brand is also active in fashion shows for every season. At present, it has become a brand known by consumers in different international markets such as Taiwan.     4.3.1.5 Brand Perception LVMH has achieved positive response from the international market including Taiwan with the brand gaining popularity among high-income professionals and the wealthy class. At present, there are only limited LVMH boutiques in Taiwan managed by the LVMH fashion group in Taipei. These boutiques are situated in the high-end fashion districts in the cities in Taiwan to provide greater accessibility to its target consumers. To date, the company or brand has not received any significant negative feedback from the market. In fact, it has even maintained the consistency of the view of the company, the brand and its products as high in quality and elegance.   4.3.1.6 Brand Recognition Looking at the brand logo and monogram immediately results to the instant recognition of the brand. The company has developed a distinct brand expression through the value communications attached to the logo and monogram, making the brand easily recognizable when seen in the streets, events, television shows, fashion magazines, awards, and movies. The only issue that arises in brand recognition is informing consumers on how to recognize the original logo and monogram. To address this problem, the company has arranged exclusive distribution of its products as well as limited distribution on high-end department stores.   4.3.1.7 Consumer Behaviour Based on the financial reports of the company in the past three years, it has experienced consistent increase in its global operation. Profit increased from €1.31 million to €1.47 million and then to €1.63 million in 2004, 2005 and 2006 respectively. Out of its global profit, 20 percent comes from Asian markets including China, Hong Kong and Taiwan as the greatest contributors. To date, LVMH has also established 954 stores in 2006 located in different international markets. (2007b; 2007d) This implies that the company is experiencing increased patronage from consumers. In addition, the fact that Louis Vuitton and other LVMH brands has experienced the greatest degree of piracy indicates increase demand from consumers, especially the market segment with limited means to purchase LVMH products but wanting to don luxurious goods. The extent of demand is expressed through the statistic that 99 percent of Louis Vuitton products circulated in the markets, particularly in China, Hong Kong and Taiwan are counterfeit while only 1 percent are original and sold at exclusive boutiques or limited distribution in high-end department stores. 4.3.2 Calvin Klein 4.3.2.1 Brand History Calvin Klein is a fashion brand owned by Phillips-Van Heusen (PVH) Corporation since 2003 together with 18 other brands. Prior to this, Calvin Klein was established as a brand named after its primary fashion designer. The brand was inspired by the urban youth in New York. The clothing company was formally established in 1968 with its line of sportswear products. As the brand pickup-up popularity, the brand expanded to include jeans, underwear, casual weal and formal wear. The sleek designs of Calvin Klein achieved appeal with Hollywood stars that some of its patrons include Julia Roberts, Gwyneth Paltrow and Helen Hunt. Prior to the brand’s acquisition by PVH, it has achieved the status of becoming a leading lifestyle fashion company. ( 2007) 4.3.2.2 Global Strategy Calvin Klein is geared to become not only a leader in lifestyle design but also a top marketing company. To facilitate its global marketing expansion, its headquarters is located in New York and regional operations is coordinated though its offices in Paris, Milan, Tokyo and Hong Kong to reach European and Asian markets. Global marketing of the Calvin Klein brand is supported by the development of extensive networks of licensing agreements extended to qualifying companies in different markets around the world. (2007) 4.3.2.3 Brand Expression Calvin Klein is all about providing a total lifestyle for its customers through its simple but sleek designs of clothing line and home comforts. Total lifestyle is represented by the expansion of the brand to cover comprehensively designs for underwear, casual and formal wear as well as accessories, toiletries, and home comforts such as bedspreads, pillows and towels. The designs are simple founded upon the adage ‘less is more’ and sleek because of the precision integrated into the cuts, patterns and designs.   4.3.2.4 Marketing Overall, its marketing strategy is to acquire licensing agreements with companies holding the capacity to optimize market saturation in a particular region or country together with the maintenance of the value attached to the Calvin Klein brand. In terms of product, Calvin Klein balances both the provision of sleek fashion with a complete fashion line of everyday wear. With minimalist designs, the brand is able to provide products that are comfortable, functional and at the same time classy. It was able to provide the rare balance between comfort and classiness. With regard to price, Calvin Klein draws a bigger market segment with the introduction of its affordable clothing line under CK. Its target market includes people from the middle class up to the wealthy class. In relation to place, the brand is marketed through a combination of exclusive distribution in its boutiques, retail agreements with department stores, and licensing agreements. This allows its products to achieve greater market accessibility relative to other international fashion brands. Calvin Klein can be purchased from a wider range of channels, which is consistent with its goal of achieving a wider reach of the international markets. With regard to promotions, the brand primarily communicates to consumers through fashion shows as well as product endorsements by Hollywood and local celebrities and product features in renowned magazines.      4.3.2.5 Brand Perception Generally, Calvin Klein has received positive responses from the American and international markets. Perhaps its most significant negative feedback came in 1995 when it brought out a print advertisement for jeans with its models evocatively posed. Its ad campaign received negative comments from President Bill Clinton and a Catholic organization that it withdrew its advertisements. In the international market, it has received positive feedback from markets around the world especially due to its more affordable line. (1995) In Taiwan, Calvin Klein are also coveted by the younger and older age groups because its sleek corporate and formal wear appeals to the working professionals while its classy jeans and casual wear appeals to teenagers and professionals alike.    4.3.2.6 Brand Recognition Calvin Klein is a globally recognized brand. It has achieved a certain degree of recognition to be differentiated from other brands. Consumers are aware of the brand and differentiate the brand in terms of the products and price of competing brands. ‘Calvin Klein’ or ‘CK’ for its clothing line is a recognized brand for shoppers while its named perfumes and cosmetics have also received positive response from customers.   4.3.2.7 Consumer Behaviour When PVH acquired Calvin Klein in 2003, the company had great hopes for the optimization of the brand. In 2005, the company reported that the licensing agreements for Calvin Klein contributed $75 million to the operating finances of the company constituting an 18 percent increase from the previous year. In the same year, global retail sales reached $4 billion indicating market patronage. (2007)  5.0 Analysis and Evaluation (Comparison) 5.1 Global Expansion Status In terms of global expansion strategy, the Taiwanese brands and the international brands differ in their global expansion status. With regard to the Taiwanese brands, Shiatzy Chen is on the way to becoming an international brand with shops established in China, Hong Kong, Japan and Paris while Jamei Chen remains a local brand. Although both brands are successful in Taiwan, they differ in international status. The difference in status is attributed to the variance in the initial establishment of these brands in the international market. Shiatzy Chen established and strengthened brand equity in Taiwan before looking towards the international market but in the case of Jamei Chen, brand expansion into the international market simultaneously happened together with the strengthening of the brand locally. It was the status of brand strength that marked the difference in the result of the internationalisation venture of these two Taiwanese brands. In relation to the international brands, both Louis Vuitton and Calvin Klein were brands established and strengthened in their market of origin, which are France and the United States respectively, before going into the international market. This implies that the success of the international brands in entering the Taiwanese market and the initial success of Shiatzy Chen in the international market is attributed to the establishment and strengthening of brand equity in the market of origin before going international while Jamei Chen failed to become an international brand during the initial attempt in the early 1990s. This further means that the establishment of a brand in a local market serves as the platform or foundation in developing an international branding strategy.   5.2 Global Branding Strategy 5.2.1 Business Strategy Business strategy involving the different Taiwanese and international brands hold more similarities than differences in terms of business strategy on competition. All the brands utilise differentiation to gain competitive advantage relative to recognized and targeted competitors. Shiatzy Chen and Jamei Chen are established brands distinguishable with other brands in the Taiwanese market while Louis Vuitton and Calvin Klein, despite being considered as international brands differ in the value communicated and delivered to the public. This means that to achieve a strong presence in the Taiwanese or any other market around the world, the brand should express a unique value to draw the interest of the market, influence their decision to prefer the brand to other fashion brands, and draw people to actually purchase fashion items carrying the brand. If the brand were not distinguishable in the local or international market, it would be difficult for the brand to compete with established brand. However, in terms of the degree of distinction, Shiatzy Chen is a stronger brand relative to Jamei Chen in the international market, because of the difference in brand expression. 5.2.2 Brand Expression The different Taiwanese and international brands vary in expression. Shiatzy Chen brand communicates the value ‘neo-Chinese chic’ because of the fusion between Chinese traditional and international modern design inspirations. Fusion was the direction that the brand is targeting because of the strong foundation in Chinese design and cuts by the designer behind the brand. Jamie Chen brand communicates ‘simplicity and elegance’ that is inspired by the exposure of the designer behind the brand to international fashion, particularly French designs. Although concentrated in Taiwan, the brand offers the value of international and modern designs using the precision cuts drawn from disciplined Chinese art. However, it does not offer a similar strength of brand value that would distinguish this from other international brands so that even if Jamei Chen is a strong brand in Taiwan, it is not carry a high distinction relative to other international brands with the same expression. The brand needs to either ride on the international reputation of the designer or evolve into a communication to the market that draws consumers to distinguish the brand from other brands with the ‘simple and elegant’ tagline  Louis Vuitton brand offers the value of ‘luxury’ to the high-income market segments, which comprise its target market. Calvin Klein brand centred on the message ‘total lifestyle’ and provides a wide array of useful or practical but sleek designs in underwear, jeans, casual clothes and formal wear together with different accessories. Individually, these brands were able to communicate unique messages. In relation to competitor brands, the extent that these values meet the target market, whether locally or internationally, determines the success of the brand. In Taiwan, these brands all express different values targeting different market segments. Shiatzy Chen targets the wealthy, traditional, older age group, Jamei Chen focuses on the young professionals, and Louis Vuitton attracts the wealthy, modern group, while Calvin Klein meets the needs of both the younger and older age groups with its range of products. In the international market, Shiatzy Chen is distinguishable because of its classy, Chinese culture-inspired clothing line. This area of differentiation determines the success of global brand strategy.   5.2.3 Marketing Marketing strategy of the Taiwanese and international brands have similarities and differences. In relation to the product represented by the brand, Shiatzy Chen has a different value that the brand can offer to the international market materialised through clothes with Chinese inspired designs, cuts and colour but executed to appeal to the modern and international taste. Jamei Chen is materialized through the casual and formal wear with precision cuts and designs but this does not offer a strong enough difference relative to other brands with a similar branding trend. When lined with other simple and elegant clothes, Jamei Chen clothes may not necessarily stand out to differentiate the brand. Louis Vuitton became a coveted brand internationally including the Taiwanese market because of its offering of the value of luxury into its leather bags, apparel and accessories as well as other clothing designs made of rich and expensive fabrics such as silk, chenille and cashmere. Donning a Louis Vuitton design in Taiwan is a status symbol. Louis Vuitton products are recognizable through the logo and monogram. Calvin Klein achieved popularity in Taiwan due to its sleek but practical clothes particularly designer jeans patronized by the younger age groups as, trendy watches and other accessories, and fragrant perfumes. Calvin Klein is identified by the name spelled in full or the acronym CK. With regard to price, the different brands fetch different prices in Taiwan. Among the four brands, Louis Vuitton has the highest price followed by the three other brands but the lower end clothing line of Calvin Klein offers more affordability compared to the other brands. Calvin Klein has an advantage in terms of market saturation based on price because of its high and low-end clothing lines targeting a wider range of market segments. In internationalizing the brand, the Taiwanese brands have the option of offering a great differentiating value for the brand to establish a high price in the international market or achieve competitive advantage relative to other international brands by offering their clothes at a lower price. In relation to place or the channels of distribution, all the brands are distributed through exclusive boutiques and/or department stores. The Taiwanese brands utilize both these modes of distribution in different cities in Taiwan. Calvin Klein also utilizes these modes but international retailing is through licensing. Louis Vuitton primarily utilizes exclusive boutique distribution but retails through high-end department stores in independently managed shops or stalls. In international expansion, the Taiwanese brands should consider the mode of distribution that fits their target market. A limited target market such as that for Louis Vuitton involves exclusive distribution channels while a wider target market requires mass distribution channels such as department stores. 5.2.4 Brand Perception In Taiwan, all the four brands are held generally in a positive light by the Taiwanese market. One issue that arose against one of these fashion brands is the audaciousness of the designs considering that the brand is local and inspired by the Chinese tradition. Shiatzy Chen, in its attempt to widen its market segment to the younger age groups have expanded clothing designs to bright coloured silk mini skirts and some revealing tops to meet the demands of the adventurous younger-aged market. Its 2007 Spring-Summer collection received positive reviews from the Taiwanese and international media but it was also criticized as a little too sexy for the traditional market segment. This was the basis for the speculation that perhaps the reason why the brand is aggressively making its way to the international market is the company’s exhausted of the Taiwanese market. However, only a small segment of the market carries this perception. In fact, a new Shiatzy Chen flagship store has just been established in the past year indicating that the company still expects an increase in demand from the market in the next years to decide to invest in another exclusive boutique. The brand’s expansion into the international market is a long-term goal that every local company seeks to do, especially in this era of globalisation when it is relatively easier to enter international markets. The company believed that it was time for expansion and it is by meeting contemporary demands that it will be able to reach out to the international market. Timing is another key to success. Another issue faced by luxury brands is price. Louis Vuitton is a luxury brand specifically targeting the high-income groups in Taiwan so that the brand has become a status symbol in the market. While a large segment of the market want to own Louis Vuitton goods, the price is not affordable for a large segment of the market. Although the positive reception of the market is good for the company in enhancing its brand equity and maintaining a market base of wealthy Taiwanese individuals, this has caused brand piracy making Louis Vuitton one of the most copied if not the most pirated brand in the Asian and European market. This has caused the brand the market perception of doubt over the authenticity of the Louis Vuitton products in the market. If consumers are not aware that Louis Vuitton products is sold only in exclusive boutiques and high-end department stores, they might believe that the Louis Vuitton products retailed are genuine based on the claim of the seller. This has also affected, to a certain extent, the position of the brand as a status symbol because people would always wonder whether the products donned are genuine or pirated. LVMH has invested in a team to deal with its piracy issue.   With regard to the other brands, Calvin Klein also faced the issue of piracy in the Asian market including Taiwan. However, since the brand includes clothing line for the lower-end group, piracy of Calvin Klein is executed in a lower extent because a greater number of people can afford the brand. This means that there is also a relatively lower degree of doubt placed upon Calvin Klein brands worn by individuals. Brand integrity is another success factor. Jamei Lee is a distinguished brand in Taiwan especially among the younger professional group. However, it has not achieved that level of distinction that allows the brand to reach the international market. This is perhaps because of the subtlety of the brand communication. It expresses the Chinese-inspired value of balancing the concepts of simplicity and elegance in the designs. Since the materialisation of this value is through modern fabrics, patterns, designs there is that restrained degree of differentiation that the brand can offer to the market through its products. This means that the brand is enhanced through other means. Since the brand is also the name of the designer behind the clothing line, the reputation of the designer in the international market could be built to translate into greater brand equity. Enhancing the value offering of Jamei Chen may be necessary for the brand to succeed in its second attempt at internationalisation. 5.2.5 Brand Recognition The extent that brands are recognised in the market is linked to the extent of presence of the brand in international markets. Louis Vuitton has eight distribution channels in Taiwan. The Tainan Mitsukoshi boutique in Tainan, SK Mitsukoshi and Taichung Global boutiques in Taichung, Kaohsiung Hanshin boutique, Taipei Mall 97 and Taipei Tun Hua boutiques in Taipei, and the flagship Taipei 101 and Taipei Building stores. Its operation in four cities has made the brand well recognised in Taiwan. Its flagship stores, designed like the monogram canvas of its leather products is easily recognised as a Louis Vuitton store even if the company does not place a sign on the building. Local brands seeking internationalisation could benefit from using its products and goods logos to achieve recognition.   Calvin Klein has spread in Taiwan as an international fashion brand appealing to the market due to its brand-licensing scheme resulting to the development of fashion items responsive to the current demands of the market. Designer Holdings Ltd. became a Calvin Klein licensee in 1994 and since then engaged in a bridge business campaign to bring the brand to Europe and Asia. This was the first company to bring the brand into Taiwan. In 2003, Club 21 became a Calvin Klein licensee and plans to introduce fifty new distribution outlets in the country. Due to the interlocking operations of the different brand licensees seeking to exhaust the market, it has achieved a high rate of brand recognition in Taiwan. Brand recognition is supported by the popularity of the logos Calvin Klein or CK. Internationalising brands could also learn from this brand introduction strategy capitalising on the widening of distribution channels. Shiatzy Chen is a fully established brand in Taiwan with presence in all the major cities. In the international market, the brand is represented in China, Hong Kong and Japan in Asia and Paris in Europe. The brand is internationalising through a ripple effect with the foundational base of the brand remaining in Taiwan but as the brand achieves popularity in adjacent countries, the brand is brought into that market. At present, China is the brands biggest developing market. However, depending upon the feedback of the store in Paris, the brand could further expand its presence in this European city. The brand was able to spread through its membership program and targeting of international markets with high appreciation for alternative fashion as well as a population of Chinese descent and Asian immigrants carrying the brand with them or able to relate to the brand. Shiatzy Chen has a pool of 25,000 patrons in different markets. Strategy plays an important role in brand internationalisation. Jamei Chen was introduced previously in New York but this endeavour failed primarily because of the difficulty in launching the brand as distinct from existing brands in the market. This was because the clothing under the brand evolved from Chinese outfits for Hong Kong movies to theatre costumes. It was only after the brand was reintroduced in Taiwan that the brand achieved a certain degree of focus. Currently, the brand is still in the troughs with regard to its internationalisation plan since the company is focusing on expanding the product line to include infant wear as well as entry into other industries such as cafés and teahouses. Based on the experience of Louis Vuitton, Calvin Klein and Shiatzy Chen, as long as the brand is evolving, it would be difficult to engage in internationalisation because of the lack of a foundation for launching the global brand strategy especially when like the case of Shiatzy Chen, the initial market segment in the international market is comprised of Asians who recognise the brand or relate to the brand because of cultural or regional alignment.     5.2.6 Consumer Behaviour Consumer behaviour is measured through actual sales translated into the revenue and profit reports of the companies for brand performance. Louis Vuitton reported a 9 percent revenue growth in 2006 for its fashion and leather goods. Although it does not have any separate data on brand performance in Taiwan, reports on the Asian market show that China, Hong Kong. Taiwan and other Asian countries contribute 17 percent to total global revenue in the sales of fashion and leather goods. Asia is the fourth largest contributor next to the United States, France and Japan. Revenue generated by the Asian market increased by 19 percent. In terms of expansion, the brand is being built up for further expansion in China with Taiwan and Hong Kong remaining as stable markets. (LVMH, 2007d) The performance of Louis Vuitton proves that despite its battle with piracy, it was still able to obtain a sizable amount of revenue in Asia, where brand piracy is most rampant. Brand success is attributed to the consistency of the brand in providing the value that it represents to customers. Calvin Klein is retailed worldwide through licensing. This means that there are different licensees operating in Taiwan. Consumer behaviour is indicated by the vibrancy of licensing approvals, which implies that businesses still see a growth in demand in the succeeding years for the brand. PVH Corporation earned $75 million from licensing while global sales reached $4 billion in 2005. Brand performance in Taiwan remains positive and growing. This mode of distribution could be an important marketing strategy for internationalising fashion brands. Shiatzy Chen is a family-owned company so that it does not have reports on investor relations. However, growth is reflected in the continuing expansion of the brand in Taiwan and in its current markets. Flagship stores are increasingly being built in Taiwan, China, Hong Kong and Japan, indicating that the brand is being given greater interest by these markets. However, the focus of the global brand strategy is in Asian markets. Again, the company is actually taking its time in internationalisation grabbing opportunities as these arise but carefully weighing options before acting. Shiatzy Chen expects to achieve internationalisation as a long-term goal much like the process that Louis Vuitton and Calvin Klein went through before becoming international brands. Jamei Chen remains a strong fashion brand in Taiwan with the company continuing to establish the brand in the fashion as well as in other industries. This means that the brand will not be going into the international market       6.0 Conclusion Brand internationalisation is a complex and protracted feat achieved through a corresponding global brand strategy that occurs in a cyclical manner. This means that it is acceptable for companies to fail once or a number of times before finally obtaining an international status for its brands by repeating but enhancing its strategy or engaging in a new strategy. This also means that there are a number of direct and intervening factors that companies need to consider in developing and implementing their global brand strategy. Nevertheless, theoretical guides particularly the global brand strategy cycle provides a framework of the considerations for companies engaging in the international best practices based on the experiences of successful international companies. Theoretically, global brand strategy comprise of several stages commencing with the determination of the overall business strategy of the company particularly competitive direction followed by brand expression, marketing, brand perception, brand recognition, and consumer behaviour. These stages represent the process in developing a brand for internationalisation. This means that if the company has optimised these stages in a single cycle, it should be able to achieve a successful brand. Empirically, best practices derived from the experiences of successful international fashion brands as well as lessons from brands that failed in the international market provides helpful insight to companies seeking brand internationalisation. Jamei Chen is a Taiwanese brand that failed in becoming an international brand through expansion in New York, the fashion city in the United States. Although, there may be other reasons for the failure of the brand to conquer the New York or the United States market, the primary reason for the failure is the weakness of brand perception and expression. Brand perception refers to the extent that the brand responds to the needs of the market so this is expressed through the positive feedback that the brand receives from the public. Jamei Chen started as a brand covering traditional Chinese outfits for Hong Kong movies. However, even if these movies may have been successful in the international market, the US market was not ready for Chinese traditional fashion. Brand expression refers to the message and the manner that the message is conveyed to the market. In the early 1990s, alternative or fusion fashion was scarcely seen on the runway with fashion weeks dominated by American or European brands. When Jamei Chen came into the market during this time, there was disparity between the value that the brand is offering and the market is asking. The brand was not able to reach out to the American market. This highlights the importance of knowing the market and determining its needs that forms part of the brand perception and expression stages.   Shiatzy Chen is a Taiwanese brand in the process of internationalising with the brand represented in Japan, China, Hong Kong and Paris. Its initial success in entering foreign markets is the strength of its brand value. It was able to provide a starkly different value that captivated different markets. Brand expression of ‘neo-Chinese chic’ appealed to the market because of its unique Chinese inspiration materialised in modern designs, cuts and patterns. The brand represented the modern but culturally grounded woman that many women around the world can relate. Apart from this, early 2000 marked the entry of a number of Asian films in the international market indicating the right timing for international expansion because of the openness of international markets to alternative or fusion fashion. A combination of a strong brand and marketing strategy contributed to the success of the brand in reaching out to several international markets. Louis Vuitton and Calvin Klein took decades to become international brands. Key to their success is their unified approach to brand internationalisation. This means that brand expansion into the global market does not only rely on a single component such as the product, channels of distribution, the reputation of the designer whose name constitutes the brand, or the logo. Internationalisation involves strength in the different stages of the global brand strategy cycle. A clearly defined business strategy directs the direction of the other stages. Brand expression and perception involves precision in the brand’s ability to respond to market demands in fashion. Marketing involves the consideration of product development, pricing, product accessibility and brand linkages to consumers. Knowledge of consumer behaviour allows companies to develop a brand that will likely derive market patronage. These international brands developed overall brand strength by considering the cycle as an aggregate strategy and not merely focusing in one component to derive strength. Thus, brand internationalisation is not just creating products and a logo but also the strategic marketing of these products and logo that constitutes the strength in brand value.    Appendices Table 1.1 International Fashion Brand History Background Period Established Brand Generation Representative Brand Management Methods 1800-1899   Hundred years Brand Hermes, Loewe, Bally, Louis Vuittons, Burberry, Cerruti 1881,Kent& Curwen, Alfred Dunhill   Manage only by designer. 1900-1960       Historic Brand Chanel, Trussadi, Prada, Salvatore Ferragamo, Lavin, Balenciga, Charles Jourdan, Gucci, Hugo Boss, Fendi, Nina Ricci, Coach Christian Dior, Celine, Emilio, Pucci, Pierre Cardin, MaxMara, Chloe, Givenchy, Missoni, Krizia, Valentino, Yves Saint Laurent     Manage by designer or family business 1961-1989               Trendy Brand Ralph Lauren, Calvin Klein, Comme des Garcons, Emanuel Ungaro, Helmut Lang, Sonia Rykiel, Alaia, Bill Blass, Issey Miyaky, Yohji Yamanoto, Karl Lagerfeld, Giorgio Armani, Jil Sander, Katharine Hamnett, Escada, Jean Paul Gualtier, Kenzo, Blumarine, Joan& David, Gianni Versace, Gianfranco Ferre, Paul Smith, Romeo Gigli, Vivienne Westwood, Dolce & Gabanna, Kenneth Cole, Moschino, Donna Karan, Tommy Hilfiger, Ann Demenulemeester, Dries Van Norten, Christian Lacroix, Martin Margiela, BCBG               Manage by designer and brand manager 1980-2006       Global Brand Include above International fashion brand and the new designer brand such as: Alexander McQueen, Victor & Rolf, Junya Watanabe, Hussein Chalayan, Jeremy Scott, Julien MacDonald, Veronique Branquinho, Emma Cook, Stella MaCartney Manage by designer, brand manager and financial corporate organization or companies       Table 1.2 the Situation of Taiwan’s Designer Brand onto International Market Brand Year Established First Launching Market Operating Situation Shiatzy Chen 1978 Paris, 1991 First specialist shop open on 2001 Lufong Chih 1982 Shang-hai, 1993 Close the shop and return to Taiwan Sofhie Hong 1985 Paris, 1996 Developing Jamei-Chen 1987 New York, 1995 Close the shop and return to Taiwan     Figure 1: Global Brand Strategy Cycle Source: (2003). Global Brand Strategy: unlocking brand potential across countries, cultures and markets.   Figure 2: Brand Environment Source: (2003). Global Brand Strategy: unlocking brand potential across countries, cultures and markets.

An Analysis of International Market Expansion of Taiwanese Fashion Brands Compared with the International Expansion of Western Brands

An Analysis of International Market Expansion of Taiwanese Fashion Brands Compared with the International Expansio...