Reference no: EM133674837
An essay answering the following questions and including more information (using free academic references, intext citation and using the text I have provided):
NO AI GENERATOR PLEASE
1- The problem faced by 66° North and its leadership
2- Background of the company
3- With a footprint in several markets and a solid array of products, would a costly attempt to gain greater visibility in the US market make sense?
4- How should 66° North evaluate fit with the US market? If 66° North pursued entry into the US market, how should they do it?
5- What other countries might be a good fit for 66° North?
6- Would you recommend pursuing market entry into other countries instead of the U.S.? If so, which countries and what do you need to consider to successfully expand into your recommended countries?
7- recommendations (action plan) (Note: Ensure your recommendations are supported by evidence from readings and research)
8- introduction and conclusion.
please include in-text citation and free references
Text:
66° North, a premium outerwear company founded in 1926 in Iceland, faced the challenge of expanding its global footprint while maintaining its core brand values. When Helgi Óskarsson and Bjarney Harðardóttir acquired majority shares in 2011, they aimed to transform the company into Iceland's first global consumer brand sustainably. Despite being a household name in Iceland, 66° North struggled with low brand awareness in key markets like the United States.
The company's background showcased its commitment to quality, durability, and sustainability, with products ranging from technical outerwear to fashion-oriented pieces. However, its efforts to penetrate international markets, including the United States, had been modest. Although the brand had gained some traction in the US through online sales and limited retail partnerships, its presence remained niche compared to competitors like Canada Goose.
The leadership team, including global president Matthew Woolsey, deliberated on the feasibility of investing in greater visibility in the US market. They considered various factors such as cost, market fit, and distribution channels. Expanding into the US market would require significant investment in branded stores, staffing, and leasing costs, with uncertain profitability. Alternatives like selling through independent retailers or focusing solely on online sales presented trade-offs between market access and margin optimization.
To evaluate fit with the US market, 66° North needed to assess consumer preferences, competition, and cultural nuances. If the company pursued entry into the US market, it could consider strategies like opening modestly sized branded stores, leveraging existing retail partnerships, or prioritizing online channels. However, the risk of financial investment without guaranteed returns necessitated careful consideration and strategic planning.
While the US market held potential, other countries might offer more favorable entry opportunities. Countries with similar climate conditions, outdoor culture, and affinity for premium brands could be attractive targets for expansion. Potential markets included Canada, Northern European countries, and China, where outdoor apparel demand was growing rapidly.
Considering the challenges and uncertainties associated with entering the US market, pursuing market entry into other countries could be a viable strategy for 66° North. Countries like Canada, with its proximity and shared outdoor culture, or Northern European countries with similar weather conditions, could offer more accessible entry points. However, successful expansion into these markets would require thorough market research, understanding of local preferences, and strategic partnerships to navigate regulatory and cultural differences effectively.