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International Marketing: A Case Study Of Harvey Nichols Add in library

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Harvey Nichols recently announced it will be opening a new store in partnership with Qatari business group, Saleh Al Hamad Al Mana, in the Doha Festival City shopping area. This will be Harvey Nichols’ eighth international store. (Mintel 9.12.14)

As a marketing consultant for Harvey Nichols, you have been asked to write a report on the proposed international marketing development for the company and recommend the market for their ninth international store.

Based on your critical analysis of the company and its marketing environment, assess the strategic options available for Harvey Nichols to further develop its international presence. Recommend with justification Harvey Nichols’ strategy for international growth, identifying and recommending the market for its 9th international store.  Also discuss appropriate market entry modes and the marketing mix for the proposed market.

International Marketing Strategy Report

This should include:

• summary situation analysis reviewing key aspects of the marketing environment audit

• critically discuss Harvey Nichols strategic options for international growth and make strategic recommendations for its future international growth

• evaluate market potential and recommend its next international market and proposed entry strategy for its 9th store

• outline the recommended marketing mix for the proposed market, ensuring its relevance to the target audience.



Zhong (2013) opined that worldwide marketing is nothing but the expansion of the trade beyond the territory of a nation. On the other hand, Zou and Swan made a consequential argument in this regard by stating that there is intersect among the international marketing and the global marketing of the a business. Both of the statement reflects a similar kind of opinion in relation to reducing the barricades of the nations in the international marketplace.

With the assistance of various techniques and tools of Harvey Nichols, this assignment is concentrating upon the situation s in relation to international marketing. During the year of 1831, in London, Harvey Nichols has started its journey for the first occasion. The operational structure of the entrepreneurship was chiefly depended upon the chain of departmental stores by that the company used to sell shoes, garments and some other products as well.  This organization has opened a number of departmental stores throughout the territory of various nations within the region of Arab and UK. The 9th international departmental store is going to be launched by the company in coming succession.

Situation analysis of Harvey Nichols:

External Analysis:

PESTEL Analysis:

Political: In the period of contemporary political surroundings, Harvey Nichols steadily and successfully assessed the conditions of influence in relation to various government factors in consisting with the legal provisions relating to the departmental stores (Blythman, 2013).

Economical: It has been opined by Czinkota and Sutton- Brady (2014) for the success and for the failure of an organization, the rolem of the economy is the most significant one. Within the territory of state and national level the performance of Harvey Nichols was appreciable. Because of the augment of earning revenue, the organization successfully manage to make good figures of profit in the current financial years.

Social: In accordance to the opinion of Cateora, Gilly and Graham (2011) for the purpose of successful operation of a business, societal element is the most significant thing that makes the image of the brand, image of the products in market, identifying the choice of the customers, demand and other necessities.

Technological: For the purpose of maintaining stock and facilitating the stream of acknowledgement, the organization executed various computer based technologies, such as POS (Point of Sale) along with the societal media networks.

Environmental: Harvey Nichols believes in good practice of business by which sustainability of environment can be achieved.

Legal: The Company is incorporated with all the mandatory statutory and procedural laws of the nation, mainly law of contracts, consumer law, health and safety regulations etc.  

Five forces analysis:

Bargaining powers of the customers (low):

The major number of customers of Harvey Nichols is individuals; it is conducting its business in the marketplace with diverse situation, hence, the customers having a high level of bargaining power (Ellis-Chadwick, 2011). 

Bargaining powers of the suppliers (low)

Because of unwarranted deliver of raw materials, changing expenses from one supplier to another supplier is very less. Furthermore, suppliers of Harvey Nichols delivered enormous number of goods to Harvey Nichols.

Threats from substitute (High)

The major reason behind the competition in the marketplace is the price and quality of the alternative products. The performances of the alternative products are almost similar kind of to the products of Harvey Nichols but the due to the low price of those products, the chances of switching of customers to that substitutes are quite high (Erratum, 2008).

Potential Entrants (medium-high)

Developed market requires high amount of capital. In most of the markets of the world, customers are keen to products with law price and with a standard quality. During the expansion of the market in other nations accurate distribution policy has to be introduces in the business proceedings.

Threats from rivalry (high)

Harvey Nichols struggled from the challenges and competition from its preliminary competitors like House of Fraser Ltd, Selfridge’s retailer ltd, Harrods holding ltd, etc (Fragasso, 2008).

External Analysis:

Value chain analysis:

Value chain analysis model

Supportive activities:

General management: Harvey Nichols was encompassed with a centralized operating system for the purpose of operating the business of all the departmental stores of the company (Harold and Harold, 2008).

Human resource management: In relation to motivate the employees and to conduct regular interaction among the staffs, human resource plays the most significant role. Recruitment of skilled and efficient employees in the company is also vested within the sphere of human resource department of that company.

Technological department: For the purpose of obtaining upper hand in the competition market the company has executed some noticeable technological decisions, like introduction of point of sale and satellite system.

Procurement: For the purpose of encouraging online purchase by the customers, Harvey Nichols introduced the process of Electronic Data Interchange (EDI) in the procurement system of the company. Besides that, the company deals with the manufactures directly without the interference of any third party (Jolivot, 2008).


Primary activities:

Inbound logistics: For the purpose of providing improved service to the customers and to attract more customers, the system of e-procurement has been introduced by Harvey Nichols, like VMI (Vendor management inventory), EDI etc. The company is it constantly improving the inbound process (Kerin, 2006).

Outbound logistic: The Company has established eight departmental stores and also enhanced the business throughout the territory of Dubai. Regardless, Harvey Nichols has introduced the system of spoke distribution in the process of outbound logistics of the company.

Operations: The company deals with two kind of operational procedures, the first one is from the stores at various locations and the second one is by way of online purchase facility in the own portal of the company (Makandar, 2014).

Service: The service of the company makes it superior over its competitors in the market. Harvey Nichols guarantees to product satisfaction of the customers and in case of any faulty products the customers can change it within prescribed time.

Marketing and Sales: For the purpose of increasing the selling figures of the goods the company, apart from regular advertisement, also demonstrates the products in various social media sites like Facebook, Twitter etc. The company also provides information of their newly launched products in different online shopping sites like Amazon, Snapdeal etc (Mayrhofer, 2012).

SWOT analysis:




Clients are extremely devoted towards the corporation because of better eminence goods. In the marketplace of fashion, Harvey Nichols has excellent and appreciated brand image. Evenhandedness of brand name is incredibly effectual for Harvey Nichols.  


Products with low diverse are the main weakness of the organization. Unlike the alternative products the company has not provided the latest design. The company is using old strategies in relation to advertisement.


Introducing online purchase system gave boost to the company and it also helped the existing customers of the company, it made the shopping very easy for the customers.


The main threats of the company are the competitors and the substitute products available in the market. Present economic recession throughout the world is also an alarming factor for the business of the company. The expansion of Harvey Nichols is quite slow than the other companies.

Major issues of Harvey Nichols (TOWS Matrix):

The major and foremost obstacles of Harvey Nichols that has been acknowledged during the situation analysis are the alternative products and the competitors. In the marketplace of fashion, the company has earned a good reputation and established a brand value of their products. Nevertheless, because of maintaining good quality in the products of the company, Harvey Nichols has to put on foe sale highly cost products. However, competitors of the company such as Harrods holding ltd, House of Fraser ltd offers latest design products at a very low cost in comparison to the products of Harvey Nichols, it attracts the consumers in a rapid speed (Pasco and Le Ster-Beaumevieille, 2007).




contestant, alternate goods, political party change, financial collapse, etc


Online purchase competence, additional value upon client satisfaction, etc


Be deficient in of diversified goods, high value goods, etc


Appreciated brand, loyalty of customer etc

As a consequence, because of not sufficient latest design articles, most of the customers of Harvey Nichols had to move on towards other companies. Furthermore, Soffer and Rosa (2013) stated that in the marketplace the organization has an extremely sturdy brand value. Though, the company has remained unsuccessful in relation establishing their existence in a sequence way. Hence, any major alteration in the political scenario, social or legal environment becomes very much effectual to the business.  In addition, imposition of legal consequences enormously affected the business conduct of Harvey Nichols, especially goodwill and profitability of the company. In the course of the internationalization of the company throughout many countries these diversities arose.  

Strategic options and recommendations:

Growth strategies (Ansoff Matrix):

Product and service development: In relation to the development of the products Harvey Nichols developed it separately for the kids, women and men. In relation to attract more customers and to provide a wide range of services Harvey Nichols launched Smartphone application. It is not only helpful in relation to securing the transactions of the customers but it also helps the company to identify the loyal customers of Harvey Nichols.

Market penetration: In the fashion marketplace, Harvey Nichols in one of the very famous organization. Since the establishment of the organization, they never had to go back. The company has introduced latest technological factors in relation to increase the sale of the goods and to interact with the stakeholders of the company. The market share of the company has been immensely increased and the loyalty of the customers is also developed due to exclusive service of the company and also for the establishment of different shopping venues (Pride and Ferrell, 2008).

Diversification: In the current period Harvey Nichols introduced new products in diversity from the traditional products of the company (Rama Mohana Rao and Ratna Manikyam, 2013).

Development of Market: Harvey Nichols is very good in terms of market analysis, for instance, the company observed that the people of Dubai do not care for the price of the goods they are concern about the quality of the product, this led the company to open the store in Dubai (Whitelock, 2011).

Competitive Strategy ( Bowman’s theory)

Bowman’s Strategic clock

As per the demonstration given by the strategic clock, Harvey Nichols is mainly concentrates upon the improvement of the quality of the products instead of reducing the price of the goods. In accordance with the statement of the CEO of the company, for the purpose of meeting the long term sustainability, the company ought to look for the quality of the products of the company rather than concentrating upon the cost reducing factors. This has been recognized as one of the best strategic policies of marketing to increase the purchase power of the customers. The strategic clock suggests that the hybrid strategy is not only effectual upon the satisfaction of the desires of the customers relating to the quality of the products but it also attracts new customers.


Segmentation, Targeting and Positioning:  

Segmentation: In a market there are several segments of customers and other factors. Harvey Nichols made different group strategies for each segment of the market. Harvey Nichols by way of adequate strategic plans made harmony among the various segment of customers in the market. The following factors are eminent in deciding the segments;

  • Demographic: It depends upon the age, gender, economic condition etc.
  • Psychographics: It depends upon the life style, social class, personal views etc.
  • Geographical: It is based on the city, country, content and area of work.

Targeting:  In relation to develop the international market, targeting simultaneous segments is very much efficient. Furthermore, through the single segment target Harvey Nichols can only be able to demonstrate their products and can assess the demand of the market but by way of multi segment target the company will be able to spread the business in the international level (Yakhlef, 2015).

Positioning: Good will and reputation of the brand always attracts consumers. In spite of all the other diversities, Harvey Nichols is getting success due to its good will and brand value that assists in keeping the position in the market.


Strategic recommendations:

Strategic selection and justification:

E-commerce trade: This strategy will make the company enabled to conduct the business operation of the company from one location to the entire world. It will also help Harvey Nichols to expand business in the international market by avoiding local barriers.

Introduction of private brand: In the fashion industry it would be beneficiary for the Harvey Nichols to introduce a separate brand of clothing and jewelry into the market through their stores.

Engagement of social media: Engaging social media like facebook or Twitter is a brave decision as it will not only attracts the customers but also gives demonstrations of the products of the company (Blythe, 2006).

Selection of market and entrance:

Before making the decision relating to the expansion of the business in the international market, the company has to assess the market first into which the company is going to conduct its business. Harvey Nichols has analyzed the following markets;

Europe: The European market is quite mature though the rivalry is very high in that market. The company went through from a lot of difficulties at the entry level. Harvey Nichols targeted to attract the customers by providing good quality products and good customer service.

Asia: Asian market brought good opportunities for the business of Harvey Nichols. Most of the developing countries are situated there and human resource has never become an issue for the company.

Qatar: In this country the company is going to open its 9th store as the market of Qatar is enthusiastic towards the quality of the goods instead of pricing.


7 P’s of marketing:

Products: Harvey Nichols should give focus upon the quality of the products instead of reducing the price of the products. It will not only provide sustainability of the company but also attract new customers (Azevedo and Pomeranz, 2008).

Price: Harvey Nichols directly deals with the suppliers of the company. Hence, there is very less scope for any kind of unnecessary expenditures.

Promotion: This is the key thing for selling any product. By way of proper promotion any kind of product can be sold on a good price.

People: Harvey Nichols ought to provide good services to satisfy the customers and for the employees the company should encourage the good works and provide adequate remuneration.

Place: The Company should locate it stores in such a place where the customers can easily come.

Process: Faster and easier process not only attracts customers but makes the business conduct easy.

Physical evidence: Harvey Nichols should employee adequate number of floor employees to assist every customer.


This study analyzed the current position of Harvey Nichols in the international market with the assistance of various methodological techniques like PESTEL, Value chain, five forces, SWOT etc. It is acknowledged that the establishment of the company is very strong and the brand value of the company is the significant portion of the organizational development.



Azevedo, A. and Pomeranz, R. (2008). Customer obsession. New York: McGraw-Hill.

Blythe, J. (2006). Marketing. London: SAGE Publications.

Blythman, J. (2013). Retail Marketing. Routledge.

Ellis-Chadwick, F. (2011). Retail marketing. Milton Keynes: Open University.

Erratum. (2008). Management Learning, 39(4), pp.475-475.

Fragasso, P. (2008). Marketing for rainmakers. Hoboken, N.J.: John Wiley & Sons.

Harold, S. and Harold, S. (2008). Marketing your complementary therapy practice. Oxford: How To Books.

Jolivot, A. (2008). Marketing international. Paris: Dunod.

Kerin, R. (2006). Marketing. New York: McGraw-Hill/Irwin.

Makandar, N. (2014). A STUDY ON REFERRAL MARKETING. ELK Asia Pacific Journal of Marketing and Retail Management.

Mayrhofer, U. (2012). Marketing international. Paris: Économica.

Pasco, C. and Le Ster-Beaumevieille, H. (2007). Marketing international. Paris: Dunod.

Pride, W. and Ferrell, O. (2008). Marketing. Boston: Houghton Mifflin Co.

Rama Mohana Rao, K. and Ratna Manikyam, K. (2013). Retail marketing. New Delhi: Discovery Pub. House.

Whitelock, J. (2011). Editorial. International Marketing Review, 28(6).

Yakhlef, A. (2015). Customer experience within retail environments: An embodied, spatial approach.Marketing Theory.

Rosa, M. and Soffer, P. (2013). Business process management workshops. Berlin: Springer.

Sutton-Brady, C. and Czinkota, M. (2014). International marketing. South Melbourne, Vic.: Cengage Learning.

Swan, K. and Zou, S. (2012). Advances in international marketing. Bingley: Emerald.

Zhong, S. (2013). Proceedings of the 2012 International Conference on Cybernetics and Informatics. New York, NY: Springer.


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