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International Company in UAE Entering the Indian Textile Market - Case Study Example

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The paper "International Company in UAE Entering the Indian Textile Market" is an outstanding example of a marketing case study. The excellent and effective market-entry strategy will give DubKnit Textile and Clothing Company will enable successful entry to India. …
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Extract of sample "International Company in UAE Entering the Indian Textile Market"

Marketing Plan for new International Company in UAE entering the Indian textile market Name: Tutor: Course: Date: Table of Contents Table of Contents 2 2.0 Introduction 6 DubKnit Textile and Clothing Company will be a Dubai based cotton yarn and fabric manufacturer that will focus on the production of high quality yarns, fabrics, clothing apparel usable in weaving, knitting and manufacture of other cotton apparels for local and international markets. The company upon its inception intends to enter the Indian market. The founders of DubKnit Textile and Clothing Company are former executive employees of an American based large multinational textile company with facilities in UAE with 6 Their decision to start the textiles business and immediately enter the Indian market is motivated by the fact the despite the competitive textile industry, majority of the textile firms within the GCC community import the raw materials from India. India is the world leading producer of cotton, and DubKnit intends to build a competitive advantage from direct access to raw materials. Also, many textile firms in UAE and many other Asian textiles dealer focus their production in the international market thus ignoring lucrative opportunities available locally. DubKnit Headquarters will be located in the Dubai’s Industrial areal along Al Musalla Road, Deira on rented premises with spacious parking and go-downs. 6 3.0 Business Concept 7 3.1 Description 7 3.2 DubKnit’s Mission statement 7 DubKnit Textile and Clothing Company’s mission will be to “operate a cost-effective and respected textile business offering high quality products while protecting the environment and all of the people we serve.” 8 3.3 DubKnit’s Business goals 8 The enterprise will focus its efforts in the following business goals: 8 4.0 Product Analysis 8 4.1 Product 8 4.2 Product characteristics 8 4.2.1 Functionality 9 4.2.2 Design and Style 9 4.2.3 Value Proposition 9 5.0 The Indian Textile Industry Environmental Assessment 10 5.1 Socio-cultural forces 10 5.2 Political forces 10 5.3 Legal forces 11 5.4 Economic and forces 11 5.5 Labor forces 12 6.0 Market Entry Strategy 12 7.0 Marketing Strategy 14 7.1 Market Analysis 14 7.2 Marketing Mix strategies 14 7.2.1 Product Strategies 14 7.2.2 Place and distribution strategy 14 7.2.3 Pricing Strategy 15 7.2.4 Promotional Strategies 15 7.3 Competitive Strategy 16 8.0 Human Resources Strategy 17 8.1 Management 17 8.2 Human resource management 17 8.3 Organizational Chart 18 9.0 Risk Analysis of the Indian markets 19 9.1 SWOT Analysis of the India’s textile and clothing industry 19 9.1.1 Strengths 19 The Dubai Textile Industry is an autonomous industry. The location of Dubai and liberation of international trade agreements enables the commercial city’s industries acquire raw materials easily that come with controlled costs and this reduces the operations lead times. The availability and mobility of labor skilled labor enable firm competitive advantage to the local and international markets. The proximity of Asia and China the world’s leading cotton spinners enables UAE’s and the entire Asian textile industry gain access to broader varieties of cotton fiber hence product diversification and innovations (Minyoung et al, 2010). 19 The flexibility in the industry makes it easier to increase and diversify productivity. The Dubai’s growing economy and the great potentials in the local and international markets make the industry feasible to invest in. the industry is versed with a diversity of segments that give opportunities for another range of products. Not only is the apparel industry one of the largest revenue contributor but also it is the country’s major export. 20 9.1.2 Weaknesses 20 9.1.3 Opportunities 21 9.1.4 Threats 21 10 Conclusion 22 11 Appendices: Profitability projections 23 12 References 25 1.0 Executive Summary DubKnit Textile and Clothing will be a United Arab Emirates based cotton yarn and cloth manufacturer that intends to commence its operations in the mid 2011. Based in Dubai, the company will manufacture high quality cotton yard to be used in weaving, knitting, and manufacture of cotton fabrics and apparel. With a young team of dedicated staff to run the company’s operations and ensure that client needs and expectation are met or exceeded, DubKnit Textiles and Clothing will successfully handle individual, private, corporate, local and international requests, ensuring that timely deliveries are made to the clients. The company though will begin with hired facilities including vehicles, temporary staff, and rented premises; with anticipated robust growth, intends to not only acquire its own assets with permanent and pensionable staff but also take control of the industry because of its quality clothing and textile products. This will be achieved within the first 12 months after operations commence. DubKnit Clothing and Textile Company’s core target market will be cloth manufacturers within United Arab Emirates and the Asian international markets. Once the business peaks up, DubKnit will explore such markets as Denmark, Finland, Norway, Sweden, Netherlands, Iceland, Turkey, Korea, and Thailand amongst others; which already have strong business relationships with many UAE industries. The company will build partnerships with other players with in the said targets markets especially in the vast Scandinavia. The Gulf Cooperation Council (GCC) member states in which UAE has membership will be the chief target market. The other countries include Bahrain, Kuwait, Oman, Qatar, and Saudi Arabia. Apparently, the company while setting up its Dubai based plant, the same time it will be entering the Indian market. This plan therefore is guideline of its process of entering the Indian market. 2.0 Introduction DubKnit Textile and Clothing Company will be a Dubai based cotton yarn and fabric manufacturer that will focus on the production of high quality yarns, fabrics, clothing apparel usable in weaving, knitting and manufacture of other cotton apparels for local and international markets. The company upon its inception intends to enter the Indian market. The founders of DubKnit Textile and Clothing Company are former executive employees of an American based large multinational textile company with facilities in UAE with Their decision to start the textiles business and immediately enter the Indian market is motivated by the fact the despite the competitive textile industry, majority of the textile firms within the GCC community import the raw materials from India. India is the world leading producer of cotton, and DubKnit intends to build a competitive advantage from direct access to raw materials. Also, many textile firms in UAE and many other Asian textiles dealer focus their production in the international market thus ignoring lucrative opportunities available locally. DubKnit Headquarters will be located in the Dubai’s Industrial areal along Al Musalla Road, Deira on rented premises with spacious parking and go-downs. The company will have 24 hour online electronic ordering service linked with its Indian branch that will enable clients or fabric and yarn dealers to access our ordering systems wherever they are on the globe or whatever time convenient to them. This will enable the company’s clients and partnering dealers get easy-to-follow-up, convenient and professional ordering processes that ensure timely responses hence enhancing the company’s the competitive advantage in the industry. To acquire the machines, staff, legal requirements and set the up the two manufacturing plants before starting the operations, the shareholders of the business will require $ 3.2 million. Already a state of the art ultra modern yarn looming machine has been acquired at a cost of $ 1.1 Million. Of the total required capital to start the business, the duo shareholders has raised $2.4 million and the balance- $ 0.8 million will be acquired from a local investment bank as a loan payable with in 2 years since the company begin operations. 3.0 Business Concept 3.1 Description DubKnit Textile and Clothing Company will be a leading Dubai based manufacturer and distributor of cotton cloth and yarns. The company’s products will be not limited to a variety of cotton yarns such as knitting fabrics, pure cotton yarns, slub-yarns, and functional blended yarns and finished cloth. The yarns and cloth are normally used as a raw material for production of casual clothes, shirts, sportswear and women's wears. DubKnit Company intends to commence operations in June 2011 in New Delhi India. It projects its revenues to come from its cloth and yarn businesses. The Company will support the operation of its mother company in Dubai, including flow of raw materials. Together with mother branch, Indian DubKnit will distribute its products in the GCC market and later export to Taiwan, Japan, Hong Kong, China, North America and Europe. 3.2 DubKnit’s Mission statement DubKnit Textile and Clothing Company’s mission will be to “operate a cost-effective and respected textile business offering high quality products while protecting the environment and all of the people we serve.” 3.3 DubKnit’s Business goals The enterprise will focus its efforts in the following business goals: To offer superior quality ranges of garment and yarn product to our local and foreign esteemed clients which are safe to human and the environment, To continuously seek ways to save energy Constantly reduce, recycle or avoid waste from operations throughout our supply chain To Share knowledge and resources with our employee’s and communities to improve the quality of lives for all. 4.0 Product Analysis 4.1 Product The production of cotton yarn and cloth is a complex labor intensive process that cannot be achieved without employment of skilled workers. In a typical production process, of the employed skilled workers, each of them performs a particular a critical step in the overall process. Cotton yarn and cloth processing was a technology discovered in the 1880s. The process of manufacturing the yarn can simply be broken into three main parts: Preparation, Spinning, and Weaving (Almeida 77). Additionally, there is one technical process that involves preparing the design that will be applied to the woven cloth. 4.2 Product characteristics 4.2.1 Functionality DubKnit Clothing and Textile Company acknowledge that cotton yarn and fabrics; and their usability or acceptability by the consumers is largely a factor of functional effects which fundamentally is necessary in order to produce quality and value added textiles items. Excellent functional qualities goes along way to enhancing new technical applications in the industry and also even for such conventional uses as clothing and home textiles. DubKnit Clothing and Textile will therefore always endeavor using technology and its people to supply its clients with quality and varietal branded cotton yarn and fabric consumers, that will enable clients majorly industries manufacturing garments and clothes achieve production of superior textile products with stronger lasting performances. Likewise, for DubKnit’s own clothing plant will produce exceptionally high quality apparel. 4.2.2 Design and Style DubKnit Clothing and Textile Company will employ highly trained staff who will be designing children and mature people’s wearing apparel using their ergonomic knowledge to design universally accepted sizes of the apparel. The company intends to achieve significant product differentiation the industry of clothing through high performance properties, paralleled with visual appearance. Some of these properties will be developed using the specific needs of each market segment. For example, some of the factors will include protective clothing for cold weather regions, special Islamic or Indian dresses that depict their religion and so on. 4.2.3 Value Proposition DubKnit will produce high quality cotton yarn and cloths and strive for competiveness in the industry in highly lucrative but competitive textile and clothing market. DubKnit will hold a strategically favorable market position within the Dubai and international textile market against its competitors; producing superior quality, ensuring timely and convenient ordering and delivery processes for its local and foreign clients. 5.0 The Indian Textile Industry Environmental Assessment 5.1 Socio-cultural forces The Indian citizens enjoy relatively higher standards of living, with blend of western lifestyles. The country’s economic position has improved over time and peoples’ disposable incomes have also increased thus enabling the local populace purchase houses, cars and other materials assets. Although most of the investment is domestically owned, the society has invited investors from across the world, and New Delhi in particular is multicultural city. The various designs and services in hotels, restaurants, and housing architectures reflect a diversity of cultures leaving and doing business in the in India (Minyoung et al, 2010). These are critical factors which will enable the DubKnit Company to excel because it is able to attract and target many people. 5.2 Political forces India is one of the biggest democracies in the world. With a federal republic form of government founded on English common law, the rest of the legislation and constitution is based on judicial review of legislative acts, and separate personal law codes apply to Muslims, Christians, and Hindus. There relatively political stability. The country currently has a coalition led government (Minyoung et al, 2010). These factors will have the newly established company in this region because for it to thrive it needs to have a good political environment, legal policy, and legislations. A good political system will enable the company to gain favor and thus establish itself in a fast manner in this region. 5.3 Legal forces The business environment has regulations enforced by the national laws. Such legislations include discriminations and disability policies. Recently, the Indian government introduced minimum wage requirements. This will be in favor of the Dubai International Company because it will get a cheap source of labor for the organization. The legal environment in India is guided by parliament and state legislations, which is a good basis for establishment of companies in this region. This will therefore favor the Dubai International Company because of the company will gain legitimacy in this region in a quick way. Examples of such legislations that the company will benefit from include Standards of Weights Act, Trade mark Act 1969 Consumer and Protection Act 1996 (Ahmed 1-2). The company will also benefit from stringent laws including license permission, copyright permission, and many types of other permissions. 5.4 Economic and forces Latest economic analysis indicates that India has rapidly undergone a shift paradigm attributed to its competitive position in the world. Its economy is on a robust growth, a phenomenon which is essential for the success of the Dubai International compant. With a stable economic annual growth rate, the capital market is fast swelling and there is rise in foreign exchange reserves. This is an important fact, which will see the Dubai International Company rise to a level of success quickly. In the second quarter of 2010/2011 financial year (July-September quarter of 2010), the economy grew by 8.9%, indicating that the future of the country is bright and thus companies investing in it can benefit. The Indian government is enticing and high economic expansion, is rapidly wooing attracting new FDIs, which has sparked high demand in the real estate sector. This will benefit the Dubai International Company in that it will ensure foreign investors come into the country. The country’s currency (the Indian Rupee) is worth USD 0.022 or $ 1 is equivalent to approximately Indian Rubee 45.18; is pegged to fixed exchange rate regime, has seen it gain value relative to the euro and the dollar over the past five years (Erin et al, 426). Being a member of World Trade Organization, the country is not restricted by any trade agreements, thus imports and exports freely move into and out of the country (Ahmed, 2007, 1-3). These will also benefit the company in that it is going to see it overcome the milestones of success. 5.5 Labor forces The Global competitive report of 2006 ranked India highly for abundant and skilled labor, but with very low on flexibility. Dubai International Company, once in this market, will obtain and use this labor cheaply. The inflexibility is rooted mainly in the legislations concerning handling labor-employer disputes (Ramamurthi, 2000). The labor laws forbid summary layoffs without obtaining approval from the employees and the government labor authorities (Kripalani, 1998). The Dubai International Organization exercises this phenomenon and therefore it is going to favor it positively. 6.0 Market Entry Strategy Excellent and effective market-entry strategy will give DubKnit Textile and Clothing Company will enable successful entry to India. The company’s market introduction and launch programs, thus ensuring not only significantly registering its expectation in the industry but also ensuring financial targets are met or exceeded even despite the common challenges associated with start up ventures. The Company acknowledges that a sound market-entry strategy will minimize uncertainties commonly faced by new market entrants (Minyoung et al, 2010). Like any other market entering, the Indian textile industry will require such aspects as product standardization, labeling, and industry certifications consideration to be taken into account. DubKnit India will ensure that it has all the requirements that would help it conform to the regulation and standards for a successful and smoothly take-off. With scheduled launch ceremony, the company will ensure that it has sufficient publicity among the targeted clients. Several approaches will be used to get businesses to help the organization commence its operations. This will include marketing or proposal pitches to specific clients and firms whose raw materials and yarns. At this infant stage of the company, the most cost effective distribution channels will be used. DubKnit will partner with apparel wholesalers or exporters in Dubai or other targeted foreign markets. Generally, wholesalers are specialized and have in-depth knowledge of the different segments in the textile industry. One of the advantages with using wholesalers or other retail dealers in foreign markets is that, with competitive prices they will be willing to cater for all the requirements associated with importations such as product warehousing, paperwork, and any other distribution activity. Having done a thorough and a comprehensive market and industry environment analysis; and fulfilled all the legal and industry requirements, DubKnit Textile and Clothing Company will develop a systematic market-entry process that will allow it to begin operations with increased competitiveness. The company will begin operations in the mid of 2011 and a month later conduct an official launch which will be publicised through different mediums. 7.0 Marketing Strategy 7.1 Market Analysis India’s textile industry has an own growth rate of 8-11%. Apparel alone contributes to over 12 % of the country’s total export. In 2006 it contribute to 6 % country’s GDP, 16% to total manufacturing industrial production, and 20% to the total country’s export earnings. It estimated that the industry will grow by over 11 % in next 2 years. (Hadj, et al 88). The industry depends on locally available raw materials; and is considered one of the major employers in the country. At least 25 % of fabric and yarns used in the global textile industry is from India. As at February 2010, there were over 200 active textiles and clothing manufacturers, majority exporting to the international markets such as in US and EU (Minyoung et al, 2010). 7.2 Marketing Mix strategies 7.2.1 Product Strategies As marketing strategy, DubKnit will seek all possible way to differentiate its products and markets. Its competitive strategy will be timely delivery to its domestic clients offering high quality cotton yarns and cloths. The company will develop a product and quick service roadmap that will match DubKnit’s technical capabilities with the needs, demands and benefits of the customer. The roadmap wills details ordering processes, the available qualities of cotton yarns, pricing, availability of delivery services, and lead-times. The details of this roadmap will be the main guidelines used during the company launch which will be scheduled to occur a month after starting operations. 7.2.2 Place and distribution strategy Serving domestic and international markets, DubKnit India will use the appropriate and already existing distribution channels to reach its client where they are in the globe. Since the company will be starting and to win domestic markets to support operations, the company will arrange timely delivery of ordered items up to a certain quantity say 1 tone of cotton. Theoretically, developing framework of sales and distribution channel will involve introduction of an adaptable sales model, with clearly outlined company’s sales and distribution structure. In order to reach its customers and ensure constant supply to clients, DubKnit will therefore define its licensed outlets operating go-down services locally and internationally players (Ganitsky, 41). 7.2.3 Pricing Strategy One of the DubKnit’s competitive advantages will be its pricing model. Currently many firms import ready made yarn from China and India at exorbitantly high prices. DubKnit comparative pricing will be slightly lower since the company will only be exporting unprocessed cotton; thus an advantage to DubKnit India. 7.2.4 Promotional Strategies There will be a Brand and communication strategy for market entry which will include the launch date. This plan will also identify the mediums of communicating the brands and the uniqueness and cost effectiveness of the cotton yarn cloths from DubKnit. Some of the attribute of these products from DubKnit will include their superiority in quality, the timely delivery and cost saving price model. Such attributes, benefits and values will be the key selling propositions during the full launch campaign. Customer will be made aware they will not need to wait for imported cotton brands which normally delays in the port because of the long and bureaucratic clearing processes which sometimes inconveniences operations in the firm. The company will use advertising and promotions, through commissioned posters around Dubai to publicize the company products. As for apparel the organization will use celebrity personalities to endorse their brands. 7.3 Competitive Strategy DubKnit will be exposed to a number of opportunities for competitive advantages. There tactical launch plan, will purposefully cover all functional areas of the textile and apparel products. By use this approach, DubKnit will be able to engage the launch team, the potentials clients, and other textile dealers with all the necessary specifications of the exceptionally high quality company products for implementation and ensuing that launch activities are consistent to the overall market entry strategy hence creating competitive strategy from day one. The main sources of competitive advantage will be founded on pricing and lead- and turn-around times. Since the Indian DunKnit will supply processed and unprocessed yarns to the local textile companies, the company will always ensure there is a shorter turn-around time for its clients. Since its major competitors in this line will be from out side the UAE, the company will have the advantage of convincing the rest of the markets. Similarly pricing of locally manufactured yarn will be relatively competitive hence DubKnit will also have an advantage over its exporting competitors. Also there will be 24-hour high level customer service to attend to all requests from customers. The electronic online ordering systems will ensure that lead-times are provided to the clients as soon as they place their orders. Immediately an order is received, production is scheduled and the client is given a feed back. 8.0 Human Resources Strategy 8.1 Management DubKnit will have an executive management comprising of the Board of Directors which will be the technical think-tank helping in strategic decision making. The CEO is will lead the company departmental managers focusing the entire departments to the over all company mission and objectives. 8.2 Human resource management Human resource in every organization is very important. An organization can have sound financial resources but if it lacks committed and self driven human resource, it will be heading nowhere and more often it collapses. For a success or failure of any organization, it all depends on its human resource. The company depends entirely on its staff and management for its operations, activities, and tasks to be accomplished. It therefore means that, for it to succeed and compete favorably with its competitors, its employees must have the required skills and competences to outperform their competitors. Recruiting and selecting the required employees in a company is very important because having employees without the knowledge in their areas of operation is the start of poor performance in a company. This therefore calls for a vetting process so as to recruit and select people with the required qualifications befitting his or her department. By this it means that applicants for any position must meet all the required academic and professional qualifications, experience, age, and the institutions of learning he or she underwent so as to verify or find out whether they are recognized and registered by the relevant authorities to offer the services. Specialization is a key requirement in selecting and recruitment of employees; this is whereby a person should be employed to the work in the department he or she majored in school and has knowledge and qualifications in that field or department. Training and development of employees is crucial in the human resource department. Training is imparting of skills, competences, and knowledge to employees whereas development is a continuous process of learning to acquire knowledge in the relevant field. There should be continuous policies and programs for training and development of employees in DubKnit Company. Since environment is dynamic, therefore, the need to regularly review training and development program to ensure that they get quality skills and competences so as to perform and discharge their duties with ease giving them added advantage to outperform their competitors or rivals. Effective and qualified trainers should conduct Training and development of employees so that they get the required skills, competences, and knowledge The human resource will work as the company administration department ensuring that each and every employee has all the required to tools and capabilities to performs in the section attached to the specific employ. In summary the department will be in charge of recruitment, training and ensuring Performance Management. It will also facilitate labor relation and ensure all the labor allows are observed in the organization. 8.3 Organizational Chart The following is a representation of the DubKnit organizational structure. 9.0 Risk Analysis of the Indian markets 9.1 SWOT Analysis of the India’s textile and clothing industry To assess the feasibility of the industry, SWOT analysis is handy in order to determine potentials risks in the industry. 9.1.1 Strengths The Dubai Textile Industry is an autonomous industry. The location of Dubai and liberation of international trade agreements enables the commercial city’s industries acquire raw materials easily that come with controlled costs and this reduces the operations lead times. The availability and mobility of labor skilled labor enable firm competitive advantage to the local and international markets. The proximity of Asia and China the world’s leading cotton spinners enables UAE’s and the entire Asian textile industry gain access to broader varieties of cotton fiber hence product diversification and innovations (Minyoung et al, 2010). The flexibility in the industry makes it easier to increase and diversify productivity. The Dubai’s growing economy and the great potentials in the local and international markets make the industry feasible to invest in. the industry is versed with a diversity of segments that give opportunities for another range of products. Not only is the apparel industry one of the largest revenue contributor but also it is the country’s major export. 9.1.2 Weaknesses Despite the mentioned strengths, there are a few challenges found within the Textiles industry within UAE and the entire global Industry. The industry is highly dependent on cotton thus largely affected by the fluctuation of supply of the commodity. The diversity in segment in the industry increased the ranges of clothing products; there is reported lower productivity in each of the segment making it practically not economical to delve in only one segment. Globally, decline in mill segment poses a major challenge to the industry (Erin et al, 429-430). While the technological advancement has increased efficiency in the textile industry, it hasn’t improved productivity in the entire value chain. Also, shipping infrastructure creates a bottleneck that largely affects efficiency especially in Dubai. The bureaucratic shipping, clearing and forwarding processed increased transaction time. Generally, the labor laws in the Asian market are not favorable to businesses. The lack of Trade Memberships weakens the value of exportation prices and other potential markets cannot be tapped. High cost operation cost is the greatest challenge in the textile industry. With no economies of scale, the industry experiences high taxations, power charges and interest rates (Hadj et al 87-88). 9.1.3 Opportunities Externally, the industry enjoy growth rate of an average of 8-10%. There exists diverse lucrative opportunities in the larger domestic and international markets. The possibilities of product diversification to meet varying the needs of the global consumers present the industry with more opportunities. The elimination of the quota restrictions in the global textile industry to liberalize the market has resulted in greater marker development and expansion. The elimination of quota restrictions has led to greater Market Development. Latest trends indicated a gradual shift towards branded readymade fabrics thus creating even more product opportunities and expand the industry in the Indian market. The robust economic growth has implied increased disposable income and eventually stronger purchase power of in the domestic markets. Therefore, the domestic market is experiencing robust growth. This has opened new market development. The upcoming and growing retail textile industry; and the emergence of shopping malls provide a vast range of opportunities for such segment as apparel, handcrafts and others. Majority of the Asian states including India, are experiencing greater investment and more FDI influx. There are even more FDI opportunities available in these markets (Griffin, & Pustay 216) 9.1.4 Threats Despite the inexhaustible range opportunities available in the clothing and textile industry, there exist a number of threats. Mores specifically, the Indian textile and clothing sector faces a severe competition from other textile producers such as China. The diverse global demand pattern requires continuous quality improvement of which if not done, exposes the firms in the industry to serious risks. Also, the elimination of restrictions will eventually lead to fluctuations in demand of clothing and textile exports. India is geographically disadvantaged compared to China, its major competitor which has proximity to the Europe and US markets. Also, the unfavorable international and environmental laws inhibit innovations in the industry. It is also difficult to maintain efficiency in use of raw materials by balancing demand and supply levels and similar creating an optimal balance between price and quality (Kobrin 131-140). 10 Conclusion Generally, the UAE has a lot of incentives for local and foreign investors into their economy. Especially in the textile industry, the country has many organizations that support foreign manufactures and local start-up ventures entering the market. Their support activities seek to enable new entrant establish successfully in Dubai. The Dubai Textile Merchants Group and the UAE Textile Association are two umbrella organizations working to the best interests the UAE textile firms locally, regionally and even globally. The association has trade associations with international players (Ganitsky, 33). The Institute of Dubai Textile Retail Traders provides very essential and extensive databases with contact information for the textile retail sector. With these contacts it easy to penetrate into domestic market (Erin et al, 431). 11 Appendices: Profitability projections DubKnit’s India branch profitability will improve as operations progresses. Generally, the financial projection will be as tabulated below: Projected 3 year Profit and Loss accounts Year ‘11 Year ‘12 Year ‘13 Projected Sales $1,204, 534 $1,641,722 $1,721, 228 Total Cost of Sales $824,857 $859,309 $889,417 Gross profit Margin $379,677 $782,413 $831,811 % Gross profit Margin 31.52% 47.66% 48.33% Expenses Marketing/Promotion $52,100 $52,100 $52,100 Utilities $12,500 $4,500 $4,500 Rent $20,400 $20,400 $20,400 Insurance $4,480 $4,480 $4,480 Depreciation $0 $0 $0 Payroll Taxes $0 $0 $0 Other $0 $0 $0 Total Operating Expenses $125,480 $141,080 $150,096 Payroll $36,000 $59,600 $68,616 Profit Before Interest and Taxes $253,966 $641,333 $681,715 EBITDA $253,966 $641,333 $681,715 Interest Expense (18%) $45,714 115,440 $122,708 Taxes Incurred (30%) $76,189 $192,400 $204,145 Net Profit $132,062 $333,493 $354,861 Net Profit/Sales 10.96% 20.31% 20.61% 12 References Ahmed, M. UAE. World Fact-book, 2007. Almeida, Luís de., Functionalisation of textiles: future perspectives. Proceedings of the 5th World Textile Conference AUTEX- 2005. 2006. 77-82 Anderson, Erin. and Coughlan, Ann T. International Market Entry and Expansion via Independent or Integrated Channels of Distribution. Journal of Marketing, January 1987 Vol. 51: 71-82 Cateora, Philip . International Marketing. Boston: McGraw Hill Irwin (2007). Print Erin, Parrish, Nancy L. Cassill, and William Oxenham, Niche market strategy in the textile and apparel industry, Journal of Fashion Marketing and Management, 2006 10 (4) 420 – 432 Ganitsky, Joseph. Environmental Assessment and Marketing Plans of Leading. Domestic and Foreign Firms Operating in Latin America. Journal of Global Marketing, 1989 2(3) 19-48. Griffin, R. W. and Pustay, M. W. International Business: A Managerial Perspective. London: Prentice Hall 2006. Print. Hadj Taieb, S. Msahli, and F. Sakli. Modeling Consumer Satisfaction Degree of Functional Textile. Journal of Modeling and Simulation of Systems, 2010 1(2) 84-89. Investors Must Know”. International Journal of Commerce and Management, Volume Ten, Number Two, 2000, 20-31. Kapur R., & Ramamurthy R., (2001). “India’s Emerging Competitive Advantage in Services”. The Academy of Management Executive, Volume 15 Number 2, May 2001, 20-33. Kobrin, Steven Jay., Foreign Direct Investment, Industrialization and Social change. MA: Jai Press, 1997. Print. Minyoung S., Caroll K., & Casell N., Critical review on smart clothing Development. Journal of Textile and Apparel, Technology and Management. Fall 2010 6(4). Kripalani (2001). “India: Luring Investors Will Take Real Change”. Business Week, June 4, 2001, 21-23. Ramamurthi R., (2000). “ A Multilevel Model of Privatization in Emerging Economies.” Academy of Management Review, Volume 21, Number 3, July 2000, 525-550. Sheel A., (2001). “Political Economy of India 1800-2001”. International Journal of Commerce and management, Volume Eleven, Number Two, 2001, 1-17. Treadgold T., (1998). “India: The Good, The Bad, and The Ugly.” Corporate Location, November/December 1998, 42. . Read More

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Pearl of the Persian Gulf: Dubai's Secret

The people of Emirates have an opinion that the demise of the Founding Father of United Arab Emirates (uae), Sheikh Zayed in the year 2004 and the bereavement of Sheikh Maktoum, ruler of Dubai in 2006 were significant incidents in the history of uae.... The paper 'Pearl of the Persian Gulf: Dubai's Secret' looks at a city where adventurous people who love a lavish lifestyle go and splurge their money, and have a good time....
40 Pages (10000 words) Research Paper

GDP, Global Competitiveness and Other Indicators - the United Arab Emirates

In conclusion, regardless of the existing challenges, the uae is a suitable country for a multinational corporation to expand to.... It is a country report on the different risks and opportunities that exist in the uae and how this can be used to determine whether or not an Australian-based multinational organisation should expand its manufacturing activities to the uae.... his assignment is about the business development process in a multinational company and how this process takes into consideration different risks that exist at the international level....
12 Pages (3000 words) Case Study
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