Skagen Design Report
Skagen Designs
Group 4
Q1. What screening criteria should Skagen Designs use in connection with its choice of new markets for its watch collection?
When Skagen Design chooses the new markets and use the connection with them, at first, they have to care about price. Competitive price is not only one of the essential of their brand, but also the easiest method to enter new markets, especially in developing markets. In watch markets, you can see which markets is developed or developing from the charts, after looking at those, you will see which strategies Skagen Design needs to enter into each market with. Somehow, competitive price is qualified advantage in any markets, of course, it is a lot more affecting to developing markets. So, Skagen Design need to keep the low price and proper quality, of course, with their characteristic design either.
Next, aside from price, they also have to separate market into developed & developing markets in watch markets as I mentioned already. By dividing them into two groups, they can decide which strategy they will adapt to, for instance, if the market is developed market, they have to upgrade their quality. It will charge more cost, so the price should be higher, but the customer in market doesn’t need normal one, so it is necessary. Meanwhile, if the market is still developing market, the best way to attract them is to keep low price with proper quality. Also, Skagen Design has simple design, it could make easy to adapt slight change from local needs.
Third, Skagen Design should check whether the market has any forces with international trade such as high tariff. It is basic step before getting into the market, since Skagen Design has not bigger brand power comparing to competitors such as Gap, Calvin Klein, it has to be emphasized with quality and low price. With high tariff, it ain’t possible to keep lower price than local brand, and not even other international brands which has good online
Group 4
Q1. What screening criteria should Skagen Designs use in connection with its choice of new markets for its watch collection?
When Skagen Design chooses the new markets and use the connection with them, at first, they have to care about price. Competitive price is not only one of the essential of their brand, but also the easiest method to enter new markets, especially in developing markets. In watch markets, you can see which markets is developed or developing from the charts, after looking at those, you will see which strategies Skagen Design needs to enter into each market with. Somehow, competitive price is qualified advantage in any markets, of course, it is a lot more affecting to developing markets. So, Skagen Design need to keep the low price and proper quality, of course, with their characteristic design either.
Next, aside from price, they also have to separate market into developed & developing markets in watch markets as I mentioned already. By dividing them into two groups, they can decide which strategy they will adapt to, for instance, if the market is developed market, they have to upgrade their quality. It will charge more cost, so the price should be higher, but the customer in market doesn’t need normal one, so it is necessary. Meanwhile, if the market is still developing market, the best way to attract them is to keep low price with proper quality. Also, Skagen Design has simple design, it could make easy to adapt slight change from local needs.
Third, Skagen Design should check whether the market has any forces with international trade such as high tariff. It is basic step before getting into the market, since Skagen Design has not bigger brand power comparing to competitors such as Gap, Calvin Klein, it has to be emphasized with quality and low price. With high tariff, it ain’t possible to keep lower price than local brand, and not even other international brands which has good online