To operate in the fashion industry of the Philippines, it is vital to know various factors that distinguish this particular culture to that of Australia. There are some major challenges that the company may face such as, difference in cultural dimension, communication practices, negotiation process which is associated with the government as well as the supply chain or other stakeholders (White III, Boddewyn and Galang 2015).
There are six major cultural dimensions such as Power Distance, Uncertainty Avoidance, Individualism, Masculinity, uncertainty avoidance and finally Term Orientation. After judging these dimensions, the organisations enter any foreign market. In these dimension there is a high variation among the Philippine and the Australian culture.
As the company is going to deal with the fashion business in the Philippines. It is important for it to come across with the nuances of culture and communication. It is necessary to build networks which has proved to be great challenge previously.
In the Philippines it is necessary that the company head will be making decisions who avoids meeting people in order to shun confrontation. The negotiation process takes time because the Philippines has made the group consensus necessary. In case the representatives are changed, the company has to start over the negotiation process that slows done the negotiation process.
Infrastructure and regulation:
The country has proved to have low advancement in infrastructure development. This include their near to the ground transport system, overcapacity in the international airlines and regular Urban as well as port congestion. In addition to this, the Philippines has ranked lowest in the field of internet speed, penetration and connectivity. The country is having huge restrictions in product registration and environmental and labelling requirements.
Addressing the challenges:
In order to avoid these challenges, the corporation needs to first realise the methods of motivation, training and manage performance of the local employees before entering the Philippine market. To communicate successfully, there is a need of getting introduced by a third party (Gootiiz and Mattoo 2017).
Concerns with the local community:
The local community of the Philippines is concerned with the increasing corruption in each level of society. The country has low judicial efficacy. These are slow and complicated that fail to inhibit fair resolution of the commercial disputes which affect the local people.
Despite the fact that English language is used in governmental activities, a great number of community is incapable of understanding and communicate which affect their business. This leads to unemployment and depression.
- As it is a fashion garment company, it can do a lot to maintain a long term relationship with the local communities. These communities have a huge like for fashion and they are capable to amalgamate the tradition with modern. The company will-
- It is a carbon neutral brand which will support the environmental problems in the Philippines.
- Understand the community’s stated needs and maintain the relations to keep motivated them
- Conducting the adaptation research which strengthens to allow for greater elasticity in resource their utilization.
Bird, K., 2018. Reducing Youth Not in Employment, Education, or Training through JobStart Philippines.
Gootiiz, B. and Mattoo, A., 2017. Regionalism in services: a study of ASEAN. The World Economy, 40(3), pp.574-597.
Kleibert, J.M., 2015. Industry-academe linkages in the Philippines: Embedding foreign investors, capturing institutions?. Geoforum, 59, pp.109-118.
White III, G.O., Boddewyn, J.J. and Galang, R.M.N., 2015. Legal system contingencies as determinants of political tie intensity by wholly owned foreign subsidiaries: Insights from the Philippines. Journal of World Business, 50(2), pp.342-35