A Case Study Of Bimba And Lola Fashion Chain

Bimba & Lola is a fashion chain of stores from Galicia. It holds the sale of both clothing and original accessories.

The Spanish fashion firm has 183 stores and franchises in 17 different countries distributed by Europe, Asia, Middle East and Latin America, and it expects to expand in new markets. (EuropaPress, 2014).

It is the business that has grown faster in Spain, due to its expand by almost all over the world offering original products with an intermediate price always keeping the latest trends.

1.1 MOTIVATION TO INTERNATIONALIZE

Bimba & Lola is an international franchise chain, which continue its growth plan. This expansion suppose opening up markets more profitable and giving the possibility to increase the new ideas using innovative

MARKET SCREENING AND SELECTION

The market screening is an important decision, which should be evaluated carefully as it is based on the failure or success of the company in the foreign countries. It purposes is to allow the retailers to identify the best locations in a large geography to establish their business.

For this, based on Sirkeci and Cawley, it is useful to follow the criteria that is going to explain bellow, that increase the knowledge of the markets to see what is the most proper for your business. (Sirkeci and Cawley, 2012).

The market screening is a long process that requires dividing in different steps. Firstly is important to define de criteria of the characteristics that are going to be evaluated.

There are some of them, which require a higher degree of measurability accessibility and actionability such as the location, economy or political factors among others. These are called general characteristics and are critical values to decide the select market.

On the other hand, the specific characteristics need a lower degree in the factors that are mentioned before, however is important to give a high degree of relevance in some

This activity is expanding rapidly. (Noruega, 2014)

Analysing the PIB by sectors, it has grown in tertiary activities, in relation to industry and services by 1.3% (González, 2013).

It is currently one of the most important countries of Latin America for luxury brands as they have increased their sales by 12 billion dollars in 2012. (Fashion United,2013)

In the last years it has been produced a large price stability due to the stability of the peso as currency unit, being very flexible. It reflects the strength of the economic system. (Rico, 2012)

3.1 MARKET DRIVERS

Businesses do not operate in isolation. Managers need to constantly scan and analyse their external and internal environment to stay ahead in the competition and gain competitive advantage. (Appendix 5)

3.2 COMPETITORS

On the Mexican market, there are many competitors based on the sale of clothes and complements, as this country attaches a great importance to the fashion industry.

The chain competes with Mango Touch, Massimo Dutti, Uterqüe and more stores that offer similar products with nearly the same average price. (Appendix 6)

According to SWOT