I agree with the marketing director about how the company should develop new products aimed at the Chinese market rather than traditional British products for a range of reasons.
One reason why I believe that the company should develop new products for the Chinese market is because of diversification. This is because I believe the company’s competitors are able to make ‘cheaper products in China’. This has made the company to be more capital intensive, meaning that the company is losing its differentiation focus of making its products handmade. This is because its costs are so high but have been able to lower costs, using machinery which means its products are not diverse from the competitors. This is what other competitors have done to make theirs cheaper so has lost its diverse aspects from competitors. The company developing new Chinese products means that it can make its products diverse from other competitors in the Chinese market this can be obtained from the research they have found and make products suited for the market.
Another reason why they should change their market, to just providing for the needs of the Chinese is because of its old fashioned image within the UK which could easily could happen in China. This shows they could completely rebrand their image within the new market in China. The company already has a large Chinese department store interested for a new line of products so has an ensured buyer of their new line of Chinese products. This could lead to gaining brand loyalty within the market and more market share in the long term. However it could be an issue with the quality, since they are working at full capacity and having more products on line. This could be possibly why they are making poor quality products which could give the company low brand loyalty with the products looking low cost and cheap to produce. This shows that the