Globalisation
Globalisation
• US competitor-couldn’t satisfy Australian wet suit demand.
• Increasing international interest in Ripcurl as a brand.
• Word series surfing came to Australia.
• Late 70’s Australian government provided export incentives for Australian business’s to sell overseas because of overseas protection.
• In USA Rip Curl faced high freight costs and US tarrifs on imports.
• Exchanges rates vary continuously.
• The $A appreciated after floating in 1983.
• It became too costly to import Aust. Product into France in 1984.
• French licensee set up own manufacturing operations.
• Economic troubles in Brazil caused Rip Curl to purchase half the capital of Brazilian licensee.
• Rip Curl hedges its currency risks.
• Introduction of Euro gives advantages of dealing with single currency.
• Counterfeiting is impossible to completely stamp out.
• Surfers share similar surfing culture no matter where they live.
• Promotion of Rip Curl products similar throughout the world
• Distribution channels vary from country to country
• The threat of political unrest is real to global business
• Its easy underestimate costs of operating overseas
Ripcurl
• Ripcurl decides to diversify in to wet suits.
• Ripcurl needed to expand their business moving into an old bakery.
• Increased awareness of Ripcurl overseas.
• Ripcurl decided to start in the USA in the late 1970’s as domestic demand dried up.
• Rip Curl created a factory in USA
• Exports of Rip Curl products grew thrgoughout 1970s.
• By 1981 sales in USA justified setting up manufacturing in USA.
• By 1990 licenses made Rip Curl products in several countries.
• By 2000 Ripcurl group firmly established internationally in Australia, Europe and USA
• Choice of overseas manufacturing factors.
Wage Cost
Timely Delivery
Ability to service regional sales
Moral and ethical concerns
• Rip Curl lobbies governments to tighten legislation.
• Rip Curl uses patents to protect some product
• US competitor-couldn’t satisfy Australian wet suit demand.
• Increasing international interest in Ripcurl as a brand.
• Word series surfing came to Australia.
• Late 70’s Australian government provided export incentives for Australian business’s to sell overseas because of overseas protection.
• In USA Rip Curl faced high freight costs and US tarrifs on imports.
• Exchanges rates vary continuously.
• The $A appreciated after floating in 1983.
• It became too costly to import Aust. Product into France in 1984.
• French licensee set up own manufacturing operations.
• Economic troubles in Brazil caused Rip Curl to purchase half the capital of Brazilian licensee.
• Rip Curl hedges its currency risks.
• Introduction of Euro gives advantages of dealing with single currency.
• Counterfeiting is impossible to completely stamp out.
• Surfers share similar surfing culture no matter where they live.
• Promotion of Rip Curl products similar throughout the world
• Distribution channels vary from country to country
• The threat of political unrest is real to global business
• Its easy underestimate costs of operating overseas
Ripcurl
• Ripcurl decides to diversify in to wet suits.
• Ripcurl needed to expand their business moving into an old bakery.
• Increased awareness of Ripcurl overseas.
• Ripcurl decided to start in the USA in the late 1970’s as domestic demand dried up.
• Rip Curl created a factory in USA
• Exports of Rip Curl products grew thrgoughout 1970s.
• By 1981 sales in USA justified setting up manufacturing in USA.
• By 1990 licenses made Rip Curl products in several countries.
• By 2000 Ripcurl group firmly established internationally in Australia, Europe and USA
• Choice of overseas manufacturing factors.
Wage Cost
Timely Delivery
Ability to service regional sales
Moral and ethical concerns
• Rip Curl lobbies governments to tighten legislation.
• Rip Curl uses patents to protect some product