There are a number of strengths from which Eagle Jeans can build. One is that they have a strong customer base among Chinese-Americans, which provides enough revenue for the company to subsist. This is a luxury and allows them to explore other markets. The stores in New York are bringing in $3 million per year, which sounds like a good number, and is 10% of the total for all Japan. As another point of strength, the product is of high quality. This is reflected in the price so the jeans are not great value, but there is usually a market for high-quality product. Whether a consumer believes that jeans labeled “Made in China” are of high quality is debatable. An American consumer might accept “Made in Japan” as a sign of quality, but “Made in China” often carries the opposite connotation. So there could be a weakness in there. The sales staff is another strength. The strategy of hiring sales staff to cover not only English but also Korean, Japanese and one or more Chinese languages is a strong tactic that has been successful for Eagle. The staff are also very well-trained.
A notable weakness is that the company is highly-centralized, with decision-making for the American market located in Japan. This requires a lot of communication between Koji and his bosses, which takes time away from his other duties. Moreover, Japanese managers do not necessarily have any idea what works in America — at best, they are applying a strategy suitable for the Japanese market to the American market, which is a mistake. Another weakness not being considered much here is the product — jeans that fit well on Asian bodies don’t usually fit well on others. The thing about clothes is that they have to fit well and look good on people in order to spur and sustain demand. If Eagle jeans do not fit nor look good on a non-Asian, that may explain why the company is having trouble selling to other demographics. This plays into the inventory issue — they argue that they cannot manage their own production of larger sizes, but then they sell those sizes from other brands. This means they are bringing in other brands to sell jeans to a demo that doesn’t shop at their stores — a waste of space and inventory. A third weakness is arguably the brand itself. Japanese denim has no particular reputation in America — none of the major Japanese brand names are known to Americans. This is true for Eagle as well, despite the apparently American connotations of the name. The reality is that this brand has to engage in brand-building in order to justify to consumers that its high prices. Another weakness is that sales in the U.S. have plateaued, but the returns are not strong enough to finance further growth. The brand is essentially at a standstill in the American market.
There is a substantial opportunity to expand the brand beyond the Chinese-American market. There are many other demographics that Eagle can target in order to increase sales, each of which can be considered to be an opportunity. In addition, there are other expansion opportunities. Even just catering to the overseas Chinese market, Eagle can do well in Toronto, Vancouver, London and other cities with substantial populations of this target demographic, in addition to many cities in the U.S. where Eagle does not currently operate. There are further opportunities in online retailing, and wholesaling, and there is some support among senior management to pursue these sorts of opportunities.
In terms of threats, competition has to be first. The denim market is saturated at virtually all price points. Making matters worse for Eagle, the U.S. market has a multi-tiered retail system that often results in high-end brands being sold at discounts, either store-branded (Nordstrom Rack, Saks Off Fifth) or third-party discounters (Marshall’s, etc.) . American consumers did not necessarily do their clothes shopping on major shopping streets at full price. Asian-Americans may see paying more as prestigious, but a lot of Americans would not dream of paying full price for anything.
Based on this SWOT analysis, it would seem that neither strategy is exactly perfect. The SWOT analysis technique is best used to allow strategy to flow from the SWOT. The SWOT implies that the company needs to make adjustments to the product in order to grow into other demographics — the current product does not appeal to people who do not have an Asian body type. The other implication here is that the company needs to promote the brand better. Koji is right that the service distinguishes the brand, but this will only be meaningful if the product is good. The Japanese managers definitely lack appreciation for the service component. The reality is that any premium-priced product not only needs to be an exceptional product but it also needs to be an accompanied with high-end service. The two go together, and both should be emphasized when building the brand. But the service does create an opportunity for better exposure, as it is a meaningful way for the company to differentiate itself in what is an incredibly competitive marketplace; Koji is right about that. He just needs to remember that for $200, you have to sell both the sizzle and the steak, and that means having a product that Americans want to buy. Japanese management needs to be less intractable on this issue, especially if they are unwilling to promote other brands. If you want to make real money in America, you actually have to sell something Americans can use.
The PR Agent
The PR Agent is not really the biggest issue that Koji is facing, but at $5,000 per month the agent is not good value. The agent’s work so far has been good, but the current need is for somebody who can make mainstream media contacts happen. This agent is not able to do this. It actually does not matter if the agent is the problem, or if the constraints regarding the focus on service are the problem — either way, nothing is happening to justify any further $5,000/month expenditure. If there comes a time when central management loosens its stance on promoting the service, or if Koji decides to go rogue on this issue, then the issue of the agent can be revisited. In the meantime, it does not appear as though Eagle is getting adequate ROI on the agent to justify keeping the agent. The agent’s contract should be terminated.
The key concept of glocalization reflects the idea that a company can operate globally, but that there should be local market strategies, a high degree of customization for local markets in order to ensure that the product and its marketing appeal to local tastes (Roudemetof, 2005). Glocalization in business reflects the need for companies that wish to thrive in all markets to adopt a blend of global and local characteristics (Svensson, 2001). The underlying logic of this can be seen in some of the elements of this case. Headquarters is running this company purely as a Japanese company. Not only are they maintaining the high degree of centralization, but they are making decisions that would make sense for the Japanese market. This makes their strategy local to Japan, and not even global. A global strategy would have to be one that can be applied across many nations — the current strategy does not even work on that level. Moreover, it is not local to the U.S., either, something that is a significant constraint on the performance of the Eagle Jeans USA subsidiary. Thus, the management style is not congruent with either the global or the glocal approach, and at least one of those would have to be adopted. Preferably, it would be the glocal approach, and the failure to adopt this approach is in part responsible for the subsidiary’s mediocre level of performance and failure to gain significant traction outside of the Chinese-American niche.
The Los Angeles store failed for a few different reasons. The high cost of the managers — paying both salary and their living expenses — was one reason, and the accounting of some of these costs was unorthodox to say the least. The store also underperformed because there was no walk-by traffic; it was a destination store that for anyone outside of the Japanese community was not in a destination. Thus, there was little opportunity to build other markets, because LA has strong ethnic enclaves that are distant from one another. Payroll at 48% of sales is virtually a guarantee that the store will not be profitable. Another issue was the management. Both managers were hired in part to find a successor and failed — maybe they were insufficiently-motivated.
Some of these issues could have been avoided. The accounting of the manager salaries was weird, very inconsistent. Hiring managers who had to be paid all those living expenses, cars and the rest was a poor decision that automatically increased costs, and hiring inexperienced people doubtless held the sales back. Koji also should have understood the differences between that location and his New York locations — nobody is driving long distances in LA traffic just for a pair of jeans. LA is a very different market than New York and Koji simply didn’t take the time to understand what that meant for the business. Had he, the decision might have been different.
Thus, the mistakes made in LA could definitely have been avoided. Had the company undertaken a more careful examination of retail success factors, it may well have decided a different market, one with foot traffic like San Francisco, or at the very least a different location in LA, would be more appropriate. But the entire LA venture was ill-conceived and even more poorly-executed. Management in Japan have to take some of the responsibility for that, too. They were the ones who paid to send a manager from Japan and pay all of her expenses in addition to her salary, which handcuffed the ability of the store to turn a profit right from the beginning. Further, they hired this manager and then she wasn’t the one who hired the staff, compounding things. Was Koji in charge of the store or the manager from Japan? There were so many own goals scored by Eagle with the LA store that it is almost impossible to tell if it could have succeeded.
Closing the Store
The decision of whether or not to close the store is simple mathematics. It costs $54,000 to close the store, which is on track to lose $58,000 in Year 4. There are 18 months remaining on the lease, which implies a loss of around $87,000 at that rate. Thus, it is cheaper to close the store than to continue operating it for the next 18 months. The major issues at the store — the high cost of the manager and its lousy location — are intractable. Moreover, sales have plateaued. There is no upside to maintaining that store, and it is cheaper to buy out the lease. Thus, Koji should buy out the lease as it is cheaper than not buying out the lease.
The wild card in that is that Japanese managers tend to have long-term time orientation (MacLachlan, 2010). If the LA stores fits with some greater brand-building vision for the U.S. market, then management back in Japan might prefer to stick with the store. That said, however, there is no clear vision for this market. Koji did not perform well with his approach to the LA store — he didn’t even do a foot traffic count, and his long-term vision for LA and the U.S. market in general is basically non-existent. Did Koji even visit the store after it started falling short of expectations? If this store is to be part of a greater vision for the U.S. market, Koji is not the guy to run this effort. So if he is the person in charge, the store should be closed.
MacLauchlan, M. (2010). Challenges of doing business in Japan. Communicaid. Retrieved October 18, 2015 from https://www.communicaid.com/cross-cultural-training/blog/challenges-of-doing-business-in-japan/
Roudemetof, V. (2005). Transnationalism, cosmopolitanism, and glocalization. Current Sociology. Vol. 53 (1) 113-135.
Svensson, G. (2001). Glocalization of business activities: A glocal strategy approach. Management Decision. Vol. 39 (1) 6-18.
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
There is a very low likelihood that you won’t like the paper.
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY!!!
We provide professional writing services to help you score straight A’s by submitting custom written assignments that mirror your guidelines.
Get result-oriented writing and never worry about grades anymore. We follow the highest quality standards to make sure that you get perfect assignments.
Our writers have experience in dealing with papers of every educational level. You can surely rely on the expertise of our qualified professionals.
Your deadline is our threshold for success and we take it very seriously. We make sure you receive your papers before your predefined time.
Someone from our customer support team is always here to respond to your questions. So, hit us up if you have got any ambiguity or concern.
Sit back and relax while we help you out with writing your papers. We have an ultimate policy for keeping your personal and order-related details a secret.
We assure you that your document will be thoroughly checked for plagiarism and grammatical errors as we use highly authentic and licit sources.
Still reluctant about placing an order? Our 100% Moneyback Guarantee backs you up on rare occasions where you aren’t satisfied with the writing.
You don’t have to wait for an update for hours; you can track the progress of your order any time you want. We share the status after each step.
Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.
Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.
From brainstorming your paper's outline to perfecting its grammar, we perform every step carefully to make your paper worthy of A grade.
Hire your preferred writer anytime. Simply specify if you want your preferred expert to write your paper and we’ll make that happen.
Get an elaborate and authentic grammar check report with your work to have the grammar goodness sealed in your document.
You can purchase this feature if you want our writers to sum up your paper in the form of a concise and well-articulated summary.
You don’t have to worry about plagiarism anymore. Get a plagiarism report to certify the uniqueness of your work.
Join us for the best experience while seeking writing assistance in your college life. A good grade is all you need to boost up your academic excellence and we are all about it.
We create perfect papers according to the guidelines.
We seamlessly edit out errors from your papers.
We thoroughly read your final draft to identify errors.
Work with ultimate peace of mind because we ensure that your academic work is our responsibility and your grades are a top concern for us!
Dedication. Quality. Commitment. Punctuality
Here is what we have achieved so far. These numbers are evidence that we go the extra mile to make your college journey successful.
We have the most intuitive and minimalistic process so that you can easily place an order. Just follow a few steps to unlock success.
We understand your guidelines first before delivering any writing service. You can discuss your writing needs and we will have them evaluated by our dedicated team.
We write your papers in a standardized way. We complete your work in such a way that it turns out to be a perfect description of your guidelines.
We promise you excellent grades and academic excellence that you always longed for. Our writers stay in touch with you via email.