Organizational Expansion Project

You are working for an organization that is interested in expanding operations internationally. You and your team have been selected to research and develop an implementation strategy to be presented to the Board of Directors.

For the presentation you will be using Microsoft Power Point. The following describes what information needs to be considered when planning your report.

· Legal implications

· Regulatory environment

· Rule of law and how business gets done

· Limiting the liability of the parent company

· Protection of intellectual property when used outside the U.S.

· Local labor laws REVE

· Banking requirements/regulations

·

· Foreign Currency

· Exchange rates and any conversion issues

· Cash management*

· Consideration: How does the cash get back home; repatriation of investment funds or of excess cash. Counties may limit how much can be taken out of the country; i.e., Brazil.

· Intercompany transactions

· Risk management and hedging

· Translation for financials and which method is being used; i.e., current rate, temporal rate, monetary-nonmonetary.

·

· Any other random requirements for your country that you discovered during the research process.

Just for your information, there are also a couple of laws that you should be aware of and keep in mind as you conduct your research. The laws are:

· Foreign Corrupt Practices Act (FCPA)

· U.K. Bribery Act

· Familiarity with Export Administration Regulations (EAR)

· International Traffic in Arms Regulations (ITAR)

The number of slides is based on the topics discussed above. It is anticipated that your presentation would include a minimum of 8 slides

Market Analysis Report: Clothing made up of Recycled Fibers

 

Executive Summary

Textile products are an essential part in everyday lives and represent an important sector in the global economy. As global population is projected to rise, the demand for products like clothing, towels and other textile products will also increase, while resources are expected to become scarcer. The challenge facing the world is how to produce an increasing volume of products while working to conserve resources. The JGJ Inc aims to address this challenge by working with suppliers, NGOs, and other industry stakeholders to improve the sustainability of our textiles supply chain. The concept is all textile products to be sustainably designed, sustainably produced, and made with quality that lasts.

The JGJ Inc is introducing the revolutionary textile manufacturing system that will be a game changer in conventional textile industry. The system of clothing manufacturing JGJ Inc has introduced are based on following theories.

1. Development of sustainable raw material to make garments and reuse of garments as raw material.

2. Application of different energy conversation techniques and use of renewable energy sources.

3. Use of process waste as a part of raw material again.

 

Why our products are different (unique):

JGJ Inc products are unique as well as environment friendly. Our collection is incredible proof that style and sustainability can go hand-in-hand. Our collection delivers good with every fiber not just by recycled fibers but, we produce  

· Eco-friendly garment materials for different performance applications

· garment life cycle assessment for biodegradable materials.

· Sustainable raw materials to reduce overall carbon footprint of manufacturing.

· Fully sustainable Zero waste materials processing for garment manufacturing

 

Each year millions of tons of plastic are added into our ocean through water streams causing damage to marine life. This plastic has changed the natural equilibrium of biodegradability of ocean life cycle and has bought many species close to extinction.

Bioplastics are emerging as a new source of polymer. The actual Plastics are harmful to environment and causing lot is pollution and marine life issues the new bio polymers are easily degradable in natural environment and causing low impact to environment.

 

 

Positioning and Differentiation

 

Positioning is the act of designing company’s offerings, and image to occupy a distinctive place in the mind of target market. The main objective is to create a distinguish image in the mind of customer from the products of the competitors.

As a recycled item, it establishes a cheaper value of cloth in the mind of the consumer. As people thinks that this product is made up of recycled material so definitely it will be cheaper quality. But JGJ Inc has no compromise on the quality. The promise is an environmental-friendly garment with same quality and feel of the fabric.

 

Description of the market.

The market for recycled garments is difficult to assess. It is being driven by a generation that has been educated about the consequences of excess and is conscious of the finite resources of the planet. As the awareness about the environment is increasing the demand of recycled garments is also increasing. We can say it is an emerging sector to enter. Its demand is high, and supply is short/low.

The global textile recycling market has grown 19% during 2014-2019. The increasing demand of recycled textile is primary driven by the rising environmental concern toward the detrimental impact of waste incineration.

The recycled textile sector is categorized in different segments and by end use. For example, garments, automobile industry, industrial, mining, construction etc. the JGJ Inc is emphasizing on garment sector in first phase.

 

Analysis of Current Positioning in the Market

 

· Current annual sales volume in dollars and/or units sold in the market.

The global textile recycling market was worth US$ 5.7 billion in 2019. It is continuously improving and projected it will reach 7.1 to 8 Billion US$ with in 5 years. The recycling rate of all textile was 14.7 percent in 2018 with 2.5 million tons recycled.

· Current competitors and their offerings, including points of differentiation for each offering indicating how they are positioned to each other in the market

The leader in in textile recycling is H&M, they have more than 4000 stores around the world. Than Levi’s, Zara, Madewell and north face are big names in competition. Most of them are giving price promotions. When consumer give back its old jeans or shirt the store will give a 15% discount on his/her next purchase.

H&M:

H&M garment collection program began in 2013, and since they collected 78000 tons of clothing through customer donation at stores around the world.

Zara:

Zara offer a clothing collection program that takes your old cloths back, no matter what the condition of cloth is, and in return they are giving price deduction on next purchase.

North Face:

North face offers a $10 off on a $100 purchase if a customer donates or give their old cloth back.

Madewell:

Madewell accept denim for any brand in exchange for $ 20 off a new pair of Madewell jeans.

 

Current price points of competitors:

All the competitors don’t offer a discounted price if a customer wants to buy any garment, unless they trade in their old garments. So, the price margin is same as a new garments. In-fact Levi’s offers its jeans as “Levi’s Redone” on more price than normal one. This Levi’s jeans is made up of recycled garments, normally called post-consumer waste or PCW.

 

Projections for the Market

· Projected overall market growth rate for the next five years

The global recycled textile market was valued at 5855.39 Million dollars in 2019 and projected to reach 9365 million US$ in five years. It is expected to grow CAGR of 6.2% during a forecast period 2020 to 2027.

· Projected changes to overall pricing in the market for the next five years

There is no exact data is available for pricing in the market for next five years. But experts says it will be positive. The prices will go up in next five years.

 

 

 

 

Recommended Position for JGJ Inc.

 

Although the competitors by numbers are less but by size, they are big.  For JGJ will offer following incentives to enter into the market.

· JGJ will offer 10% discount on their recycled garments even if there is no trade-in of old garment. If there is old garment customer wants to donate than an additional 15% discount will be given. So the customer will get regular 15% with old cloth and an additional 10% for purchasing the recycled garments.

· JGJ will launch a loyalty program for repeated customer the more garment a customer brings in will get more incentives.

· JGJ will offer their customer to participate in their environmental protection plan. In they company will conduct voluntary programs for environment saving. Such as one day workshop for cleaning of neighborhood. Etc.

The Unique points for JGJ Inc are,

· Designs (mixture of east and west)

· Sustainable products

 

 

 

 

 

 

 

 

 

 

 

Sustainability

 

 

 

 

 

 

 

 

H&M

JGJ

 

Madewell

JGJ

LEVIS

 

 

 

H&M

NORTH FACE

 

 

 

 

 

 

Designs/Style

 

Price

 

 

 

 

 

 

 

 

 

 

 

 

H&M

 

H&M

 

 

LEVIS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branding

 

 

 

 

 

 

 

 

 

 

The JGJ Inc will compete on their Designs and Suitability. Since the company is about to enter in market so creating a brand awareness is a long process.  Levi’s patterns/designs are almost similar every year. So JGJ will come with unique design ideas. i.e., combination of western and eastern cultures. The modern look from western culture and bright colors of eastern side.

 

 

 Buyer profile of the target customer:

Millennials and Gen Z will be the target customers. Gen Z who are well educated and knows about the importance of environment saving and sustainability. JGJ Inc will target Gen Z as their customers as they are the trend settlers, and they are the target audience group who will drive this trend going forward. For sustainable luxury brands, this means more opportunities as well as increased competition moving forward.

Berry echoes this citing Farfetch’s predominantly Millennial and Gen Z customers, who are “very brand-engaged and looking for brands with a purpose...though people buy into it in lots of different ways”. Some, he says, “will want to know lots of details of what a brand is doing, others are more interested in how sustainable a single product is”. 

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