Unit 5 assignment 1
In my essay I will be presenting the reasons why two businesses (BMW and River Island) operatein
contrasting international markets. Using the information from this research I will equally proceed in
explaining the types of finance available for international business and the main features of globalization
that affect BMW and River Island. In addition to this I will explore the role of trading blocs on
international trade, as well as analyzing the support that is available to the businesses and the barriers
of operating internationally
BMW
BMW, short for Bayerische Motoren Werke, is a renowned German multinational company that has
been manufacturing luxury vehicles, motorcycles, and engines since its establishment in 1916. With a
rich history rooted in aircraft engine production, BMW has expanded its expertise to create a diverse
range of automobiles that are synonymous with performance, luxury, and cutting-edge technology.
From sedans and SUVs to coupes and convertibles, BMW offers a wide array of models, including their
popular 3 Series, 5 Series, 7 Series, X5, and X3. The company's M division focuses on producing high-
performance sports cars, while their electric vehicle (EV) lineup under the "BMW i" sub-brand
showcases their commitment to sustainable mobility. With a strong emphasis on precision engineering,
driving pleasure, and iconic design, BMW has solidified its position as a leading brand in the global
automotive industry.
River Island
River Island is a popular high street fashion brand based in the United Kingdom. Founded in 1948 by
Bernard Lewis and his brothers, River Island offers trendy clothing, accessories, and footwear for men,
women, and children. The brand is known for its stylish designs, attention to detail, and affordable
prices, making it a favorite among fashion-conscious shoppers. River Island stays ahead of the latest
fashion trends, offering a diverse range of clothing options, from casual wear to more formal attire. With
a commitment to quality and a strong presence both in physical stores and online, River Island continues
to be a go-to destination for fashion enthusiasts seeking stylish and accessible clothing options.
P1: Explain why two businesses operate in contrasting international market
,BMW
BMW operates in contrasting international markets due to a combination of factors. Firstly, customer
preferences vary significantly across different countries and regions. People in different parts of the
world have distinct tastes, lifestyles, and cultural influences, which impact their choices in automobiles.
BMW recognizes the importance of catering to these diverse preferences to capture and retain
customers. By offering a wide range of models, styles, and features, BMW can appeal to the unique
demands of each market segment. For example, markets that prioritize luxury and prestige may see
BMW positioning itself as a high-end brand, focusing on high-performance vehicles with lavish interiors.
In contrast, markets with a greater emphasis on affordability may witness BMW introducing more
accessible entry-level models.
Secondly, regulatory environments differ from one country to another. Each nation has its own set of
regulations concerning safety, emissions, and manufacturing standards. In order to comply with these
regulations and meet the necessary requirements, BMW adapts its operations accordingly. This may
involve making modifications to engine specifications, incorporating advanced safety features, and
implementing emission control technologies to align with specific market regulations. By doing so, BMW
ensures its vehicles are legally compliant and can be marketed and sold in different regions without any
hurdles.
Moreover, the competitive landscape varies across international markets. BMW operates in a fiercely
competitive industry, contending with other luxury car manufacturers for market share. In order to gain
a competitive edge, BMW conducts thorough market research and analysis to understand the strategies
and offerings of its competitors. This knowledge enables BMW to position itself effectively and
differentiate its products and services. It may involve emphasizing unique features, enhancing customer
service, or leveraging innovative technology to stand out in each market.
In summary, BMW's operation in contrasting international markets is driven by the need to adapt to
diverse customer preferences, comply with regulatory requirements, and compete effectively. By
understanding and catering to the unique characteristics of each market, BMW can better serve its
customers, establish a strong presence, and maintain its position as a global leader in the automotive
industry.
River Island
River Island operates in contrasting international markets due to several reasons. Firstly, consumer
preferences and fashion trends vary across different countries and regions. Fashion is highly influenced
by local culture, style, and societal norms. River Island recognizes the importance of understanding and
adapting to these variations to effectively cater to the needs and tastes of customers in each market. By
, offering a diverse range of clothing options, styles, and designs, River Island can resonate with the
unique fashion sensibilities of different regions and attract a wider customer base.
Secondly, operating in contrasting international markets allows River Island to tap into the economic
conditions and consumer behavior of different countries. Economic factors such as income levels,
purchasing power, and consumer spending patterns significantly impact the demand for fashion
products. By expanding into various markets, River Island can leverage opportunities in regions with
strong economic growth and a thriving fashion market. Additionally, by studying consumer behavior in
different markets, the company can adapt its pricing strategies, promotional activities, and product
offerings to align with local preferences and affordability.
Furthermore, the competitive landscape varies across international markets. Each country has its own
set of local and global competitors in the fashion industry. By operating in different markets, River Island
can assess the competition, analyze market trends, and strategically position itself to differentiate its
brand and products. This may involve highlighting unique design aesthetics, quality craftsmanship, or
providing exceptional customer service to stand out among competitors in each market.
Lastly, expanding into contrasting international markets provides River Island with opportunities for
growth and diversification. Relying solely on a single market can pose risks and limit potential expansion.
By venturing into new markets, River Island can reduce its dependence on any one market and spread
its brand influence globally. This diversification allows the company to mitigate risks associated with
economic downturns or fluctuations in a specific region, ensuring a more stable and sustainable
business.
In conclusion, River Island's operation in contrasting international markets is driven by the need to adapt
to varying consumer preferences, leverage economic conditions, compete effectively, and achieve
growth and diversification. By understanding and catering to the unique characteristics of each market,
River Island can establish a strong global presence, connect with customers, and successfully navigate
the ever-evolving fashion industry.
BMW and River Island, despite operating in different industries, share common strategies when it comes
to operating in contrasting international markets. Both companies recognize the significance of catering
to varying consumer preferences across different countries and regions. BMW adjusts its automobile
models, features, and marketing strategies to align with the distinct tastes and lifestyles of customers in
each market, while River Island offers diverse clothing options and designs that resonate with the
unique fashion sensibilities of different regions.
Moreover, both companies adapt their operations to comply with local regulations and standards. BMW
modifies its vehicles to meet specific safety and emission requirements in different countries, ensuring
legal compliance and market access. Similarly, River Island adheres to various regulations related to
product safety, labor practices, and environmental sustainability in each market it operates in. By doing
so, both companies demonstrate their commitment to meeting local standards and building trust with
customers.
Additionally, both BMW and River Island carefully analyze the competitive landscape in each
international market. They study the strategies and offerings of their competitors to differentiate
