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XYZ Ltd produces sports shoes which are worn by elite athletes and the general public in North America - HSC - SSCE Business Studies - Question 23 - 2012 - Paper 1
Question 23
XYZ Ltd produces sports shoes which are worn by elite athletes and the general public in North America. XYZ Ltd is keen to expand into Europe and Asia. (a) What is ... show full transcript
Worked Solution & Example Answer:XYZ Ltd produces sports shoes which are worn by elite athletes and the general public in North America - HSC - SSCE Business Studies - Question 23 - 2012 - Paper 1
Step 1
What is ONE possible benefit to XYZ Ltd of using global branding as a marketing strategy?
Answer
One significant benefit of using global branding for XYZ Ltd is the potential for increased brand recognition. With a consistent global presence, the brand can establish itself in various markets, which leads to higher consumer trust and loyalty. This can result in an enhanced competitive advantage in both existing and new markets.
Step 2
Describe TWO physical distribution issues that XYZ Ltd will have to consider as part of their expansion.
Answer
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Logistics and Transportation: XYZ Ltd needs to assess the complexities of shipping products internationally. This includes understanding local regulations, the availability of transportation infrastructure, and potential delays at customs. Efficient logistics are crucial for timely delivery and maintaining customer satisfaction.
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Warehousing and Inventory Management: The company will need to consider the location and capacity of warehouses in Europe and Asia. Appropriate inventory management strategies must be implemented to ensure that stock levels meet demand without incurring excessive holding costs. This also involves determining the best way to balance stock between regions based on market needs.