FAST RETAILING

Fast Retailing Market Entrance Strategy and Supply Network

Fast Retailing Market Entrance Strategy and Supply Network

Introduction

Fast Retailing believes in the concept of continuous development and growth to become the top most in its industry (Fast Retailing, 2013, p. 3). Moreover, in doing so the CEO of the company proposes that a perfect move would be to enter Indonesia's apparel market as this would aid in the development of the brand's perception (Silaen & Otto, 2013).

The company currently requires a strategy for developing supply networks and relationships within the market to strengthen their position. In order to better understand about the strategy that will be adopted by Fast Retailing to develop strong supply networks; an in depth discussion regarding the relevant factors is required.

Discussion

Indonesia owns one of the most renowned names when it comes to its apparel industry (Global Business, 2012). The reason behind this is that the country has one of the largest apparel industries and the high population of the countries also provides extensive support in stabilizing the economic conditions of the country by working in this industry (Global business, 2013).

Selection of Entrance Strategy

Since the Indonesian apparel market is strong and full of opportunities, a multitude of strategies could be adopted by Fast Retailing for entering into Indonesia. The following strategy for entrance into the Indonesian Apparel Market would be most suitable:

Initial Phase: Licensing

Undoubtedly the Indonesian market has the potential of proving to be a golden goose for Fast Retailing. However, before completely depending upon this new market, it is better that initially the management works through licensing the products with a local manufacturer (Hillstrom & Hillstrom, 2002, p. 682). The basic advantage of this would be that the risk of loss would be reduced in comparison to total loss (Lambin, 2007, p. 5).

Final Phase: Ownership

After enough information has been ...