icebreaker: china market entry decision Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

icebreaker: china market entry decision Case Solution

1.Minimum Launch Criteria for Icebreaker Brand

The company needs to enter the market soon because other competitors in the U.S can counterfeit the wool of icebreaker product and can even go for trying to manufacture the same product and enter the Chinese market before the company does. If other companies take hold of the Chinese market; it would become highly difficult for Icebreaker to create its place in the Chinese market.

Before launching in the Chinese market; Moon should set the minimum criteria.Prior to entering the new market; it should seek for balance between handling the US market that is growing and the Chinese market where it has to enter. The company needs to set the plan to cope up with the competition in the U.S. market and figuring out who its main competitor is in the industry. Deciding the positioning for a brand is a very important criteria through which the customers would be able to differentiate between fashion and technical sportswear. By understanding the market’s needs and its consumers’ preferences; the company will have higher chances of succeeding. The company should stabilize the market share of its existing market as it will be the new lucrative market. If the requirements are not fulfilled at first, then Icebreaker shouldn’t expand its operation to China. The company should understand the situation, as there are numerous uncertainties in the new market, and the risk of establishing the business in China, is very high. Counterfeit problem is high in China, so the company should set a proper strategy to save itself from decreasing sales and brand reputation.

The minimum goals or objectives of the company, for the next five years, are:

Differentiate the Merino specialization in order to have a stable position in the Chinese market.
Create uniqueness in the mind of Chinese customers.
Grab more customer base
Differentiate the positioning and features of products to keep its products differentiated in the other markets of China.

2.Customer’s Perspective Regarding Icebreaker

Good technical apparel can satisfy the users, mostly the end-users. More demand is created by the end-users customers, as they always want to have technical sportswear to perform their outdoor activities, and they also want certain properties like light, breathable, good insulators, odor resistant and soft clothing, which wouldbe comfortable for them to perform their outdoor activities effectively. Icebreaker has a good image among its consumers as they consider it as a sophisticated brand. Due to its sophistication feature; it has created a competitive edge over its competitors – because none of the brand can match the quality of technical apparel which Icebreaker has created. Customers who assess the functionality, would choose technical apparel. Icebreaker offers a professional and fashionable product, which is preferred by the people who are interested in outdoor sports.

In the Chinese market; the customers look for a brand that provides style, quality, fashion station and luxury. There is a lack of choice for technical sportswear apparel in China, so the company can offer its product by advertising them as luxurious sports apparel, brands because there very limited brands that provide such kinds of products.

If we compare the European customers with Chinese customers; the Europeans look for technical and functional apparel while Chinese customers look for luxurious and stylish apparel. So there is a huge difference in the preferences.

3.Least Information Required to Make Decision

The least information required by Moon is to decide according to the positioning of a brand in a new market, to make it unique than its competitors. First, the company needs to conduct market research and analyze other companies who are operating in the same industry, to know their strategies. Icebreaker should also study those companies that wanted to expand to China but couldn’t succeed, what were their loopholes. Furthermore, Icebreaker needs to cooperate with the Chinese retailers who are reliable to launch the test campaign, in which they can check the customers’ responses and can also identify their demands. Based on this research feedback; the company can further plan for action to better develop its product’s features for the Chinese market.

4.Icebreaker Success

Past Success

Icebreaker understands different markets very well. The uniqueness of the brand due to its unique features and properties helps it in having a rapid growth in the market. The company benefits from its innovative materials and advanced production process. The customer’s word-of-mouth is also playing a crucial role in the company’s success. Brand positioning emphasizes on the “nature” and gives clear differentiation from other brands, and also at the retail level. Due to this, the company’s brand developed and helped the company in getting success at an early stage...........................

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icebreaker: china market entry decision Harvard Case Solution & Analysis