South Africa Company Investing In Eu Country
INDEX
1. INTRODUCTION 3
2. THE HISTORY OF CAPE UNION MART 3
3. DETERMINANTS OF THE STRATEGY 3
4. THE PRODUCT RANGE 3
5. STRATEGIC CHOICES 3
6. THE CAPE UNION MART CONCEPT 3
7. LEGISLATIVE FRAMEWORK 3
8. RECOMMENDED STRATEGY 3
9. CONCLUSIONS 3
10. LIST OF SOURCES 3
1. INTRODUCTION
The Go2Europe Project presents a strategy for Cape Union Mart, a South African outdoor apparel and accessories company, wishing to enter European (union) markets. The company is well established in South Africa but the current position has been reached as a result of conservative growth and there has been no expansion beyond the borders of South Africa.
An environmental analysis is required at both the level of the European Union (EU) and the country specific level to understand the legislation and constraints that may exist for foreign investors. The analysis covers the guidelines provided by the EU for a South African company exporting apparel to a member country. The point of entry selected to the is France because of the levels of disposable income, the retail friendly infrastructure as well as the access to a wider cultural base than what a typical English city would offer. A successful roll out of stores in France will provide the necessary impetus for further expansion into other EU member states.
Cape Union Mart has the potential to succeed in expanding its retail operations by opening stores in Europe as well providing export opportunities for its manufacturing division that provides a large portion of the clothing and footwear sold in the stores. Under the Cotonou Agreement concluded in 2000, South Africa enjoys preferential status being part of the African, Caribbean and Pacific (ACP) countries. The agreement provided preferential trade status to former colonies in order to help grow their economies (Willks & Mwebelha, 2006).
A European...
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