(1) Global Business and Its International Targets

(1) Global Business and its international targets

The global business selected is Billabong International Limited which is an Australia owned transnational corporation. Its core business is the marketing, distributions, wholesaling and retailing of apparel, eyewear, hard goods, accessories and wetsuits.

Billabong production is outsourced to overseas countries, under the direction of the central sourcing division based in Hong Kong. Manufacturing occurs in countries including:

• China • Fiji

• Vietnam • India

• Korea • Turkey

• Indonesia • Jordan

Billabong distribute worldwide, approximately 3,000 surf and board sports shops worldwide and are licensed and distributed in over 100 countries.

• Australiasia – Australia & New Zealand • North America- USA & Canada

• South America- Brazil, Argentina, Chile, Peru & Venezula • Carribean- Martinique, Guadaloupe, St Barth & St Martin

Billabong International Ltd, markets an extensive product range including 2,200 products lines in Australia alone, over 1,300 product lines in North America and over 1,200 product lines in Europe. Billabong has a diverse range of product which include;

• Swimwear • Wallets • Hats

• Watches • Travel bags • Pencil cases

• Jewellery • Backpacks • All sex clothing’s

• Wetsuit • Surf caps • Many more

(2) Reasons for Expansions

- Increase sales/ find new markets;

Billabong was founded in Australia in 1973. At this early stage, the business was concerned with the manufacturing and distribution of surf wear. Australia only had a limited amount of population and thus Billabongs goals to increase revenue, profitability, and growth. In addition to this, Billabong was also limited by the demographics of their niche market, which the appeal of surfing geographically limited to coastal areas.

Billabong began exporting to the USA in 1983,firstly in coastal cities such as California, with the goal of increasing revenue and profitability through expansion into new markets....