The Global Environment of Business Essay Example | Topics and Well Written Essays - 1500 words

The Global Environment of Business - Essay Example With this concern, the brand adopted an important decision concerning setting higher prices for its broad array of products particularly in the European region in comparison with the US owing to the reason that the choices along with the preferences of the customers are quite dissimilar in the two business markets by a greater extent. In this similar context, one of the crucial factors that lead towards higher prices of lifestyle brands in Europe as compared to the US can be identified as the expensive operational costs. This can be justified with reference to the fact that Europe based customers are more trendy in nature than the US wherein Hilfiger had to raise its operational costs in order to comply with the requirements of the trendy European customers. Apart from the factor concerning higher operational costs, the other critical aspect which led to higher prices of Hilfiger products in Europe can be identified as the concentration of the retail market. In addition, the nature a s well as the preferences of the European customers can also be regarded as the other critical factors that led towards higher prices in the European region than compared to the US. ... rucial factors that led to higher prices in Europe as compared to the US, it can be affirmed that Hilfiger might experience certain major problems especially in Europe. In this similar background, one of the vital problems that Hilfiger might face is attracting along with retaining the customers from its targeted market segment, buying its different collection of products or brands. Furthermore, the other major problem that Hilfiger might encounter from having higher prices in the European region is decreased profitability along with productivity resulting in hindered customer satisfaction and lower retention rates over the long run period. This in turn might also hamper the growth of the company in terms of its market shares within the European region by a substantial extent and restrict its future growth prospects. To be mentioned in this context, the other problem that might be encountered by Hilfiger owing to its higher prices in Europe as compared to the US, is the inability to compete with its major rivalries and thereby accomplishing superior competitive position over its chief business market competitors in terms of weakening strategy in the area of brand positioning (Gitman & McDaniel, 2008). Question 2 It has been apparently observed that Hilfiger had to experience different national preferences while performing its operational functions in several nations throughout the globe applying a widely diversified strategic process. In order to effectively deal with various national preferences and facilitate the brand towards betterment, especially in the US, the CEO of the brand intended to adopt and follow the strategy of harmonising its European and the US collections focusing on increasing market share and customer satisfaction (Uclan, 2013). In this regard, the