International Business Analysis: Hugo Boss

Chosen Market Hugo Boss specialises in high quality products like: clothes, footwear, fragrance and accessories like watch, wallets. The designer brand allows people to enjoy their clothes they wear and feel the comfort of their clothes as Hugo Boss is one of the dominating designer brands which sell high comfort clothes. ActivitiesHugo Boss is a big designer brand that is worth billions of dollars and people can buy and sell shares from Hugo Boss therefore this should be a public limited company so there is limited liability and they sell designer clothes and footwear. Hugo Boss is very well known for it polo shirt as lots of people buy and wear their products. Hugo Boss was originally made for German soldiers during ww2 however they have made a change and now they are one of the best luxury designer brands you can buy out there. Why Hugo Boss Trades Internationally? Hugo Boss was registered as an international trademark in 1977, this was when Hugo Boss decided to start selling suits internationally rather than just selling in Germany. Few years later Hugo Boss has started to be very successful as they were selling clothes but they have now successfully started to sell fragrance. After the year 2000 Hugo Boss has around 1041 retail stores and this was when Hugo Boss has started to exceed and more people have recognised the store. After Hugo Boss success it has built up a revenue of 2. 5 billion Euros which is about 2. 7 Billion dollars.

Furthermore, a business like Hugo Boss will be able to expand because lots of people have bought their products like Russell Brand has been seen wearing Hugo Boss clothes this will increase their profit as more people will start to buy their products. However one problem Hugo Boss has faced is that there has been lots of fake companies in China that make fake hugo boss products and sell it online for cheaper prices which will lead people to buy the fake product without realising, this has caused Hugo Boss to lose some income however people have started realising that there has been lots of not genuine products online, so they go to actual stores that sell hugo bosses products like House of Fraser.

Types of Finances Available

A big luxury business like Hugo Boss will already have a lot of financial opportunity and they will also have more money since they will receive a lot of money from people since they will get most of their money from customers that buy their products since Hugo Boss has expensive clothes. However since Hugo Boss trade internationally it may be a high risk since they will have a an high chance that their products can get damaged which will be lost for Hugo Boss because they will lose out of money due to the product. However businesses can take a loan on the products of the company which can make them send it but it could a risk to them because if anything happens they will have to pay it back so this is a risky choice to the bank.

Support Available To Hugo Boss

As Hugo Boss is a multi-billion dollar will have lots off support since they will need it for international trade since most businesses pay in advance when they trade internationally this is for security business as both businesses can stay safe and no one can lose money. Hugo Boss will trade internationally but they will need some sort of insurance as they have a high risk as damage to products can easily get destroyed during shipping. So they will have to look into organisations like the Chambers of Commerce. This Organisation help big companies have a a quick and safe time exporting goods and not worrying about their products not getting shipped, also the Chambers of Commerce will be a cheaper way for the company to use as a long term use as they will need it and they could save more money rather than spending their own money on shipping packaging and tracking where it is and if it gets damaged they will have to sort everything out and they will need to replace it then resend it, initially the Chambers of Commerce will save them so much and they will not have to worry about anything rather than them stressing due to the fact of trading.

The Role of Trading Blocs

Trading blocs are extremely crucial towards a business deciding to trade internationally as it decide whether the business becomes successful or becomes a failure. The main reason for trading blocs are to control the amount of exports and imports and manage it at the same time as the region may have access to and keep a consistent level of tax which reduces the competition between countries. Furthermore, trading blocs allows countries within the bloc are able to trade with each other with no tariffs in place. This has many positive effects on the countries towards the economic side as it can help contribute to boost the revenue. An example of this is when Kellogg’s decided to start to trade internationally and this was when they started to increase how much revenue they started getting and this is when they went to trade internationally. In addition, since trading blocs are used by businesses a lot this allows them to be able to grow and expand their aims at a small amount of cost. Luxury businesses, like Hugo Boss are able to import lower cost materials but high quality at the same time, so they can create their clothing, this means that they are reducing their cost and creating and increase of profit. However, a big business like Kellogg’s cannot take the opportunity of using cheaper materials as it is a huge risk to the whole business as it can cause the consumers problems whilst they eat their cereal like belly aches which could turn into a more worse problem. This means that they will be losing out of profit as less consumers will buy their products and this will cause them to lose out in a lot which can make the business go corrupt and there will be more competitive as their will be more cereal makers making more profit if kellogg's make this vital error of using cheaper products.

Furthermore, trading blocs create a friendly relationship between countries as it will make a stronger bond and understanding between them. As the countries trade more this will helps in elimination of tariff, and non-tariff barriers and facilitates free transfer of resources across the border of member countries. This help in optimum utilisation of available resources. Also, this means that there can be free trading between countries and this be help create a more friendly relationship between them and this will be good for both side off the businesses as more profit can be made since trading will be cheap to nearly free. In addition, as both businesses trade with each countries there will be more cultures between the countries, this will be beneficial for both countries because they will help businesses expand and get the idea of the businesses growing and knowing what products they should make.

Also, loyalty is crucial for the countries in the trading bloc will have an increase of customers therefore if they have loyal customers this will help them become more successful and this could be opportunity that they can make sponsorship between the two countries and this will increase profit for both businesses. GlobalisationGlobalisation is the process by which businesses or other organizations develop international influence or start operating on an international scale. This will boost the productions of services and goods from the business and this will allow them to make more profit and the business to operate more internationally and due to this it will allow the business have a greater understanding of other countries culture and language so they can make more profit. One problem Hugo Boss has had is that they will struggle to start selling their products to LDCs because they can not take the risk of selling their products in a country that has a huge minority that are poor and this will make the company make the business lose money because they are not selling any products in the country. However, a big luxury business like Hugo Boss make their products from countries that aren't so developed like turkey and they make their clothes from cheap labour which benefits them because they do not have to waste so much money on high end labour when they essentially do the same way of making the clothes. Also, Hugo Boss is a luxury brand so some of their products may be made in countries like Germany where Hugo Boss originated from.

As a result businesses like Hugo Boss should be aware on expanding their businesses internationally because they can risk out on losing money since countries may not be able to afford their products and countries that are not democratic may not want to do business with them since they may have strong belief and they won't have a good relationship with the businesses and this will not be good for the business as they could be in trouble and they may be looked at a bad way because the country can make the designer brand look bad. However, globalisation has some negative effects which can cause the business to look bad because the country can make the business look terrible through the media and this can cause the company to lose out in lots of money due to the fact that the business can be looked bad at and people from that country can spread information about the business that will most likely be lies. The media can affect the business a lot due to the fact that they will be shown in the media badly if the country do not like them.

Furthermore, the media can be leak out the businesses cheap labour which can make the business look bad at internationally and this can make the businesses lose out in a lot of money because people will be angry due to the cheap labour and they may stop buying their products and this will be a huge problem and this can make the chances of trading internationally slimmer since countries won't like what the business on how they have cheap labour do their work and this can cause them to be restricted on what countries they will be able to import in.