Bimba & Lola is a fashion chain of stores from Galicia. It holds the sale of both clothing and original accessories.
The Spanish fashion firm has 183 stores and franchises in 17 different countries distributed by Europe, Asia, Middle East and Latin America, and it expects to expand in new markets. (EuropaPress, 2014).
It is the business that has grown faster in Spain, due to its expand by almost all over the world offering original products with an intermediate price always keeping the latest trends.
1.1 MOTIVATION TO INTERNATIONALIZE
Bimba & Lola is an international franchise chain, which continue its growth plan. This expansion suppose opening up markets more profitable and giving the possibility to increase the new ideas using innovative products. (Hollensen, 2007).
Its ambitious international expansion plan, along with its many opening shops in the domestic market, has boosted the company to a high economic growth.
In the Spanish fashion industry, opening new markets is definitely the main strength, which has taken the lead in other sectors of our economy by introducing their brands and products in international markets. (ICEX, 2012) (Appendix 2)
2. MARKET SCREENING AND SELECTION
The market screening is an important decision, which should be evaluated carefully as it is based on the failure or success of the company in the foreign countries. It purposes is to allow the retailers to identify the best locations in a large geography to establish their business.
For this, based on Sirkeci and Cawley, it is useful to follow the criteria that is going to explain bellow, that increase the knowledge of the markets to see what is the most proper for your business. (Sirkeci and Cawley, 2012).
The market screening is a long process that requires dividing in different steps. Firstly is important to define de criteria of the characteristics that are going to be evaluated.
There are some of them, which require a higher degree of measurability accessibility and actionability such as the location, economy or political factors among others. These are called general characteristics and are critical values to decide the select market.
On the other hand, the specific characteristics need a lower degree in the factors that are mentioned before, however is important to give a high degree of relevance in some situations.
After analysing the characteristics of the market, being crucial for the opening of the business, this process can be divided into two main areas. One of these is the preliminary screening, which analyse the external criteria such as the political risks, and the other one is the fine-grained screening that evaluate the market attractiveness and the competitors in the market according to the retailer, as the following table (Sirkeci and Cawley, 2012 p171, figure 8.5)
MARKET ATTRACTIVENESS Very poor Poor Medium Good Very good
Market size M
Market growth M
Buying structure M
Buying power ...