Nowadays the prêt-à porter industry is very prosperous and it is a tough challenge for many big firms to expand their business and be the most competitive. They have to face with external and internal difficulties.
1) A « test order » is a « fake » order that a client requests to a new supplier to test its abilities in term of production and delivery. The client could see if the products match to its expectations and if the supplier made a work of quality then the « test order » report help the client to make a decision and choose the right supplier before their entrance in a new market.
2) Productivity improvements on existing markets can increase the production of a firm and improve their capacity to deliver goods to their customers. Moreover, it is important to research new market to increase the capacity of delivering products in all stores. In the H&M case, the fact that African costs are lowest than that of China permit H&M to reduce transport costs and delivery-time. The main reason of a delcalization is the workforce. In fact, in Africa, the workforce is cheaper than in many other contries like in France. That is why it is a real advantage to looking for new market.
3) A “risk analysis” is an analysis of all problems that a company can face with in a new market such as conflict about ethnicity, power or something else.
All this risks can affect the proper development of the company in a specific country. It allows companies to see if it’s possible and feasible for them to implement themselves in a country. In fact politics tenses can affect all the actions of the company. In the H&M case for instance, in Ethiopia the company make a “risk analysis” and discovered that Ethiopia stay a country very poor and the country doesn’t respected human rights.
4) First of all, the human rights must be respected by the occidental’s company. The company has the responsibility to respect human rights. In this case the human