Asamoah Wuudin is a Ghanaian private company owned mainly by the Wuudin family. Most of its clothing and accessories are produced and marketed by the company (some are manufactured by outside contractors). For other products, notably fragrances, cosmetics, and eyewear, Wuudin licenses its brand names to other companies. The Board of Directors of Wuudin is considering expanding into new foreign markets with athletic clothing, hotels, and bridal shops.
Required:
Advise Wuudin on the most suitable foreign market entry strategy for each of the new line of business. (10 marks)
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The opportunities for sharing or transferring Wuudin’s other resources and capabilities with/to the new businesses: Apart from its brand, which of Armani’s other resources and capabilities can be utilized in the new business?
In-House
In the case of bridal clothing and accessories, Wuudin can probably utilize its existing design, manufacturing, marketing, and distribution capabilities – in which case Armani can develop this business in-house.
Joint Venture
In the case of athletic clothing and equipment, Wuudin may need to access the technical capabilities needed to design products for different sports – hence, a joint venture may be appropriate.
Licensing
In the case of hotel management, it is not apparent that any of Wuudin’s resources and capabilities (other than its brand) relate to the design and operation of luxury hotels – hence, licensing may be the best solution.