Analysis of Hidesign Company

Analysis of Hidesign Company Hidesign is an Indian company started in the year 1978 by Dilip Kapur (Kachru 2011, p. 131). The company has been manufacturing affordable luxury leather goods for the last 30 years. As such, the company produces extensive collections of leather products such as belts, bags, and other leather accessories.Advertising We will write a custom essay sample on Analysis of Hidesign Company specifically for you for only $16.05 $11/page Learn More Ways Hidesign should have explored further products Since the year 2010, the company has extended its brand through the production of other luxury products such as sunglasses, watches, and pens. Other than focusing on the productions of these products, there are other ways the company should have explored to increase its brand. The company should have considered entering into the cosmetic business. Currently, the company has opened a number of stores in several countries. This implies that the credibility of the companyâ₠¬â„¢s products cannot be doubted. Therefore, the company should have taken an advantage of their reputation and expand its business by diversifying into a cosmetic business. Over the last century, the cosmetic industry has been expanding rigorously. This does not imply that the company would have ready market once they expand their brand into this business. The company would have to develop good and quality cosmetic products before launching them. Equally, the company should have expanded its brand by diversifying into the service industry. In India, there is abundant human labour force (Hoffmann 2011, p. 25). Thus, emerging companies should find ways of tapping the cheap labour force to increase their returns. In the same way, Hidesign should have exploited this advantage by diversifying into the service industry.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Example of lifesty le-related portfolios targeting Indian youths The strong purchasing power of young Indians is forcing most companies to adopt new approaches in marketing their products. Companies focused on a wide range of products such as cosmetics, services, and social media advertising are insistently associating themselves with younger audience. In the recent past, these companies have launched online platforms for their brands. Through these platforms, the youths can be engaged. Equally, through these platforms the youths can view and order the products produced by these companies through the e-commerce business platforms. Another reputable company that sells luxury products in India is Genesis Colours (Hoffmann 2011, p. 45). Genesis Colours was established in the year 2001. By the year 2008, the company had expanded its operations to international market. Given the time the company took to break into the international market, Genesis Colours is considered one of the fastest growing companies in India. Unlike any other Indian company, Genesis Colours embraces British, Italian, and French taste in their products enabling them to compete with other international companies. Owing to their rapid success and growth, Hidesign should emulate the mode of operations and management in this company. Through this, the company would be equipped with relevant international business knowledge. How Hidesign should leverage its association with Louis Vuitton In the year 2007, a French company by the name Louis Vuitton bought a 26% stake in Hidesign.Advertising We will write a custom essay sample on Analysis of Hidesign Company specifically for you for only $16.05 $11/page Learn More Given the fact that the operations of this French company are different from the operations in the Indian company, the association between the two companies attracted a lot of media attention. There were several speculations, which were pointed out on why the French company was inves ting in the company. Through this association, the two companies can enhance their brand equities by leveraging their associations. Unlike Hidesign, Louis Vuitton is an international company known all over the world. To enhance its presence and influence in the Indian market, Louis Vuitton should enhance its relationship with Hidesign Company. In return, Hidesign Company will benefit from the association through co-branding. Eventually, Hidesign will increase its sales internationally because of co-branding with a reputable international company. Equally, to leverage their association the two companies should link their products and market them together. By doing so, the two companies will increase their sales both locally and internationally. Through the above initiatives, the two companies will reduce the cost of positioning and introducing their products (Kumar 2009, p. 48). The only disadvantage associated with this association is that the two companies might lose control of the ir brands. The best method for Hidesign to take when going international Just like any other company, Hidesign aims at taking their products to the global market. Before a company breaks into the international market, they have to overcome several challenges. As such, taking a company into the global market is a costly task. It has taken Hisesign more than 30 years to be where there are currently positioned in the regional market. This proves that it takes several years before local companies accumulate enough resources to break into the international market (Mamoria 2003, p. 123).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More When the time comes for Hisesign to enter into the international market, its international growth will be well worth the wait. As such, the company can follow certain steps to achieve this long awaited achievement. First, the company has to guard its ideas. This requires that the company patent its ideas in several countries it aims at selling its products (Heitzman 2006, p. 67). Thereafter, the company should hire attorneys in these countries. These attorneys will help the company in handling issues related to foreign currencies and legal challenges (Terpstra 2002, p. 23). After this, the company should recognize and adapt to cultural differences in these countries. Through this, the company can identify the hidden cost of doing business in these countries. Equally, through the above initiatives, the company can equip itself with labour laws in these specific countries. Lastly, the company should diversify its global network. This may require the company to do business with compani es with opposing ideas to increase their understanding of international business (Gisler 2012, p. 10). The risk and challenges of the company becoming a global lifestyle brand If the company manages to be a global lifestyle brand, it will be faced with several risks and challenges (Cateora 2004, p. 12). These problems are economic and financial challenges, foreign politics, and challenges in formulating an international approach. When a company breaks into the international market, it is usually faced with the challenge of formulating and implementing an international approach. After breaking into the international market, Hidesign’s executives will be forced to alter their thought patterns to be in line with international market. These changes are normally challenging for small companies such as Hidesign. Although there are several international companies, it should be noted that a few of them have formulated appropriate international approach. A major challenge that is face d by a company after entering into an international market is foreign politics. Political expertise is so crucial for companies working on the global stage (Bradley 2001, p. 32). Because of government changes, international companies are forced to review their plans more often. For Hidesign, they have to make appropriate political decisions in countries they operate. The company should note that any political disarray would have a negative impact on the financial systems affecting on their business. Another major risk that the company may face after entering into an international market is economic challenges (Belch 2001, p. 34). In the host nations, changes in exchange rates, oil rates, and tariff barriers might affect the cost of doing business. Therefore, Hidesign should be fully aware of these risks and come up with appropriate measures to tackle the challenges when they arise. References Belch, G. E 2001. Advertising and promotion: an integrated marketing communications perspec tive. Irwin/McGraw-Hill. Boston. Bradley, F 2001. International marketing strategy. Prentice Hall. New York. Cateora, P 2004. International marketing. R.D. Irwin. Homewood Gisler, R 2012. Best practices, limitations, and pitfalls for companies entering the Indian luxury goods market: the Mà ¶venpick Ice cream case study. University of Applied Sciences Northwestern Switzerland. Olten. Heitzman, J 2006. India: a country study.The Division. Washington, D.C. Hoffmann, J 2011. Luxury strategy in action. Palgrave Macmillan. Basingstoke. Kachru, U 2011. India, land of a billion entrepreneurs. Dorling Kindersley. New Delhi. Kumar, N 2009. Indias global powerhouses: how they are taking on the world. Harvard Business Press. Boston, Mass. Mamoria, C 2003. The Luxury Market in India: Maharajas to Masses. Kitab Mahal. Allahabad. Terpstra, V 2002. International marketing. Holt, Rinehart and Winston. New York.