International Business

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Submitted to:

Ma’am Sadaf Razaq

Assignment

Problems Pakistani Brand Face Against International Business

Submitted by:

Ammad Zain 2017-BBA-093

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Institute of Business & Management

University of Engineering and Technology, Lahore
Louis Vuitton Malletier, commonly known as Louis Vuitton or shortened to LV, is a
French fashion house and luxury goods company founded in 1854 by Louis Vuitton. The label's
LV monogram appears on most of its products, ranging from luxury trunks and leather goods
to ready-to-wear, shoes, watches, jewelry, accessories, sunglasses and books.

Diners, has been in the fashion industry since 1990. Diners is one of the most reliable
manufacturer & retailer of complete men’s, women's, kids' garments & footwear which are being
used in all over the World. We struggled hard to set high standards and has acquired a high
growth rate. The constant research into quality raw materials, the introduction of new yarns and
new dyeing and weaving techniques, finishing and extraordinary performance are the foundation
on which the collections are created. Moreover, still we are working hard to satisfy the people
around the globe.

Designs
In Pakistan people try to take less of the risks and hesitate to try the new styles and fashions early
so our national brands are less of the modern brands which makes them harder to compete to
other brands on international level in terms of design. In the circumstances the company is
dealing “Sales Guided by Demand” method in the ready to wear clothing for both men and
women. The main reason why a Pakistani brand cannot go abroad is because of limited demand
of such styles outside of Pakistan. Moreover, there is not enough amount of Pakistani people
living abroad that can made that brand successful in abroad too.
Operations
Diner has more than 68 outlets in various cities of Pakistan. While louis vition has more than
2500 physical stores around the globe. Offshoring a Pakistani brand, it is harder for the company
to keep and eye on the operations. Diners has its production facility in Pakistan, so it is difficult
for a Pakistani brand to make their brands clothing in one country and then export them and pay
and extra taxes on its product.

Operating in countries very stranded from Pakistan can also cause a lot of trouble because they
need to hire the local workforce, staff and than shipment charges that add up to transportation,
holding cost that makes a Pakistani brand seems overpriced.

Marketing
Hiring models according to the country and try to make them look in the western way may
require a lot of effort. Before entering in new market brands must heavily invest in their
marketing to show their presence to the country which requires a lot of budget. According to the
officials of louis vittion they have spend around $250 million on its advertising in 2016 which
shows the gap of the budget for a Pakistani brand and an International brand. Moreover, a
Pakistani brand doing marketing of their designs in a country where there is small amount of
Muslim community will also cause a lot of trouble.

Logistics
Setting up a whole supply chain in other country where uncertainty is always there is difficult.
Pakistani brand setting up one or two branches in one country while international brand has
almost 15 to 20 branches in a single developed country, which makes their operations quite
profitable and less costly. Local brand Diner have their logistic partners in Pakistan but not in
every part of the world. Having logistic partner outside Pakistan it must be large enough for the
logistic company to be profit but unfortunately low demand means low branches and low
requirement of logistics.

Production sources Firm infrastructure

Production is happening in Pakistan what is the need of a Pakistani brand to go abroad. If
Pakistani brand must go abroad, they must have to set up a production facility in that country too
which could cost a lot for the brand of Pakistan with limited finances. Moreover, the
management style in Pakistan is autocratic but the foreign countries have management style
democratic which also causes trouble for brand in Pakistan.