NEW BALANCE CASE STUDY
If you have a company and do business internationally, in today's global world you will need to compete with your rivals and be good in the market. Cutting your cost is one of many effective ways to become competitive and strong. Therefore majority of firms seek low priced producer, labor etc . To be sure China is the very best example with its low cost labor, outsource etc . So China is very attractive for the companies performing international business. Most of them outsource more of their very own manufacturing to China to keep a cost benefits. It looks incredibly logical and simple to gain from cost edge by this way but it quite a bit less easy as we thought. Even as we can see each of our case, New Balance which can be one of crucial shoe corporations chose that way and faced really frustrating problem due to the brand: Counterfeit goods.
1)New Balance facing these issues:
•How to protect its intellectual properties when establishing manufacturing overseas.
•How to quit the Chinese language manufacturing unit via producing the " fashion” shoe which can be sold at very low price and diluting the brand.
2)Important factors that are essential in understanding this decision scenario:
•Since China is selling the low-price " fashion” sneakers that are no difference from the original, brand value of New Balance can be damaged.
•Selling low-price shoes may lead New Equilibrium to gain trustworthiness of selling low-quality shoes.
3)The alternatives happen to be:
•Getting in to the overseas legal system to enforce the agreement.
•Paying the least amount of 50 dollars, 000 and making a decision of setting up a selling price for the style shoes that they can cannot be sold for price less than the standard cost set.
•By closely monitoring the supply cycle to partly eliminate the difficulty of protecting the perceptive property legal rights.
•New Equilibrium can distribute press release for the newspapers that explains the specific situation about Chinese language manufacturer.
•New Balance may reach the point audience...