Dad - Proposal for International Business Expansion

1. Company Background

GARSON Corporation is an automotive accessories company which is originated in Japan. It is established in July 1990 and is dedicated to research and development of high-grade automobile accessories and advocates a luxurious and high-quality life with cars. GARSON has established cooperation with Swarovski Company in Austria, which is almost the pronoun of luxury crystals. With the partnership of Swarovski, all of the GARSON products adopt Swarovski element in order to feature the most tasteful and luxury automobile accessories.

All GARSON products are designed and manufactured in Japan now. As all of their products are produced with expensive materials such as Swarovski crystals and high quality leather, the price of its products are very expensive. However, with its unique design and luxurious image, its products are highly appreciated by the Japanese customers.

In 2007, GARSON expanded its business by entering international market through setting up a wholly owned subsidiaries company in the United States of America. The “bling-bling” style of GARSON’s product matched with the hip-hop culture in US and the business in US grew rapidly. Expanding business globally enables it to further increase the profitability and business opportunity in which the local market could not offered (Hill 2007). As the luxury car accessories business is a niche market, in order to further increase the domestic competitiveness, it must increase sales and profits, extend sales potential of the existing products and reduce dependency on existing markets. Thus, GARSON is suggested to enter the China market, which is one of the most fast growing countries in the world as the second target market.

2. Analysis on the Chosen Country – China

2.1. Country Analysis

To access the country’s attractiveness for international business expansion, we can follow the Economist Model (The Economist, 2004) developed by the Economist. It is commonly known for...