Essay: Hilfiger to Sell

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[. . .] On the other hand, the European consumers prefer to spend more on purchasing of any product or service, but the quality is the main concern on which they never compromise (Goldberg & Verboven, 2005). European consumers are very inflexible in nature. They show no flexibility towards the quality of the product therefore, they tend to be more brand loyal. The reason for this is the quality, availability, durability, attractiveness, differentiation and price (Schmitz, 2004).

Another major factor is the use of sportswear especially in the segment of Europe than in the U.S. The consumers of U.S. do have interest in sports activities, but they spend their weekends usually by hanging out or by enjoying parties, whereas the consumers of Europe are much more interested in sports and do have their league teams in football, cricket and various other games too. They have a good choice of clothing brands that is difficult for Hilfiger to compete. Moreover, the competition within the European market is at an extreme therefore, it is difficult for any MNCs to enter into this region and start promoting their brand unless they have something unique in it (Top 10 Differences Between Europe and America, 2007).

Methods to Encounter these Problems

There are many problems that are discussed earlier. However, it is important to find out the solutions of those problems and to deal with them by adopting proper strategies. For the consumers of Europe, the strategy that fits best among the porters generic strategy are the focus and differentiation (See Figure 4).

Porters Generic Strategies

Focus Strategy -- This strategy concentrates on the specification of any product or service within any particular region and organization based on the product line and the demand of buyers (Hilfiger, 2010). Focus strategy is the suitable strategy that could be adopted by Hilfiger in order makes its position in the European market by utilizing the resources from that region.

Differentiation -- Differentiation based on the quality of the product and the uniqueness that any seller delivers in its product do attract the consumers (Griffin, 2010). Hilfiger could adopt the strategy of differentiation especially in the European market so that their business could compete effectively in this market.

Low cost differentiation -- This is not the major issue for the European region, whereas for the U.S. region cost is the major issue.

Miles and Snow's Typology

Hilfiger could use the typology in Miles and Snow's that could help them in dealing with the complications of the European market (Griffin, 2010). This typology includes four types of businesses that are prospectors, analyzers, defenders and reactors (See Figure 5).

Prospectors -- They are tending to be innovative, flexible and look for new opportunities.

Defenders -- They stand in their own place and focus on maintaining the growth.

Analyzers -- They study the current trends of the market and focuses on customer satisfaction.

Reactors -- They only react when they see any environmental threat.

For Hilfiger, the suitable typology that they can adopt in the European market is of Prospectors. They need to first analyze the European market that would help them in studying the current market trends and the consumer buying habits based on their preferences. If Hilfiger is able to identify the requirement of consumers of the European market, then they would be able to perform successfully. This makes their position much stronger in the European market and improves their competitive advantage.


Birkholz, A 2007, 'Business Analysis of Web', De AG. GRIN Verlag.

Doole, I. & Lowe, R 2008, 'International Marketing Strategy', Analysis, Development and Implementation, Ed.5th, Cengage Learning EMEA.

Goldberg, P.K. & Verboven, F 2005, 'Market Integration and Convergence to the Law of One Price: Evidence from the European Car Market', "Journal of International Economics," pp. 65, 49-73.

Griffin, R. W 2010, 'Management', Ed.10th, Cengage Learning.

Henry, A 2008, 'Understanding Strategic Management', Oxford University Press.

Schmitz, H 2004, 'Local Enterprises in the Global Economy: Issues of Governance and Upgrading', Edward Elgar Publishing.

Tian, Q 2004, 'A Transcultural Study of Ethical Perceptions and Judgements Between Chinese and German Businessmen', Martin Meidenbauer Verlag.

Top 10 Differences between Europe and America 2007, 'Leisure & Travel' Available From: / [Access on 24th March, 2012]


Figure 1: SLEPT Analysis

Source: Henry, 2008

Figure 2: Hofstede's Dimension

Source: Tian, 2004

Figure 3: Growth Rate




Source: PVH Corporation, 2012,… [END OF PREVIEW]

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Hilfiger to Sell.  (2012, March 25).  Retrieved May 21, 2019, from

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