Penneys Essay

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The US market is very attractive for the entrance of Penneys, primarily due to the fact that the chain is internationally known and is welcome in most countries, due to their cheap but fashionable concept in clothing. This is especially important in the US where the average household income is one that matches with Penneys price range. The US market is also inviting to Penneys as it brings their European style into the continent. Furthermore it is being introduced into Boston, the Irish hub of the nation. In the political sense, the US market is not as attractive for Penneys as it is infamous for suing companies based on any ethical issues that they may have. Penneys have been exposed on many occasions for their use of ‘sweat shops’ in countries such as India and China, where the human rights laws are not as important as earning a wage to live off. Evidence shows that 42% of Americans have been known to penalize firms who are associated with unethical behaviour. This is one of the few ways in which Penneys would look at the US market unfavorably. From an economic viewpoint average household and personal …show more content…

Many of Penneys clothing items are based off designer fashion styles, but cost marginal prices, allowing them to have little to no substitute products. The brand name of ‘Penneys’ or ‘Primark’ is already internationally known, allowing the power of the suppliers to entice Penneys into the US market. This makes the US market very attractive coupled with the fact that the suppliers have a good opportunity to strike up supply routes going through Mexico and Guatemala. This will cut supply costs significantly, and ensure that more income can be focused on reforming the products themselves. The power of the suppliers accelerates the attractiveness of the US market for Penneys greatly, due to the supply routes, and the famously known brand

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