1.

Executive Summary

This report thoroughly investigates market and nonmarket strategies in an international business
context. It uses two case studies: Jack Wills' entry into the U.S. market and Firestone's response to
the 2014 Ebola crisis in Liberia. The report evaluates their strategies using frameworks and provides
recommendations for overcoming both organisations' challenges.

Jack Wills, a British fashion retailer, struggled to succeed in its market entry in the U.S. due to a lack
of market adaptation and operational inefficiencies. Using the Resource-based view (RBV) and
Ghemwat's AAA framework, this report critiques Jack Wills' strategy and outlines recommendations
for a relaunch. It emphasises aligning its unique resources with market demands and using strategic
partnerships for sustainable growth.

Firestone's response to the Ebola crisis in Liberia offers insight into nonmarket strategies. It
successfully operates while balancing corporate social responsibility (CSR) during a health
emergency. This report uses the IA3 framework and the Triple Bottom Line (TBL) approach to
examine the strategic and ethical aspects of Firestone's crisis management. It proposes new
strategies to increase efficiency for the Liberian Government and Firestone's operations.

This report connects market and nonmarket strategies and their role in international businesses.

2. Jack Wills: Welcome to America

Jack Wills, a fashion retailer established in 1999, built its reputation by targeting young, affluent
consumers, usually university students. The iconic hoodie and "Fabulously British" branding made
Jack Wills a popular brand in the U.K. fashion industry. They sought to expand into the lucrative U.S.
market, valued at $2.4 billion in 2010 (Passport, 2024). This report assesses their strategy using
Ghemawat's AAA typology, Porter's Diamond Model, and the VRIO framework. It identifies key
missteps and proposes a revised approach for re-entry.

2.1 Why did Jack Wills expand?

Jack Wills' expansion into the United States was a market-seeking foreign direct investment (FDI)
aimed to attempt to move into the lucrative U.S. apparel market, valuing at (add stat). The U.S. was
the largest global market, offering access to a wide range of consumers, with strong demand for
lifestyle, and ‘’preppy’’ fashion, as demonstrated by competitors like Ralph Lauren, and Abercombie
& Fitch.

Domestically, Jack Wills was a large player during the 2010s, having a large market share in
‘’preppy fashion’’. However, their international presence was very limited, with branding focused on
domestic values rather than international ones. The decision to internationalize was motivated to
create economies of scale, diversify its consumer base, and establish itself as a global lifestyle
brand (Peng and Meyer, 2019). With its size, the U.S. market offered the most opportunity for
growth, taking Jack Wills to the next level. Ghemwart's (2007) AAA framework, Adaptation,
Aggregation and Arbitrage, can evaluate Jack Wills' international strategy. It examines Jack Wills'
use of aggregation into the US.

Adaptation involves tailoring products and operations to align with local markets (Ghewart, 2007).
Jack Wills' who heavily relied on their British heritage, struggled to adapt their operations to regional
preferences, therefore overlooking adaptation. Before entry, Jack Wills did very limited research on
local markets and stores placed in areas perceived as resonating with the brand’s ethos, potentially
concentrating too much on the area and ignoring the consumer. Additionally, their campaigns
highlighted British values, which Americans don't resonate with, and only reached potential
enthusiasts or ex-pats, not adapting or transforming. American consumers' preferences also
changed quickly, while Jack Wills offered premium quarterly collections, which did not keep up with
the adapting market. Furthermore, locations in suburban malls missed the consumers who were key
to Jack Wills' U.K. success.

Aggregation focuses on achieving economies of scale through standardised operations (Ghewart,

2007). While Jack Wills attempted to replicate U.K. operations in the U.S., the approach had
significant problems. The U.S. is a much larger country than the U.K. With stores scattered around, it
diluted visibility and, therefore, recognition. In addition, inconsistent inventory levels and a poor
supply chain drove costs up, reducing customer satisfaction and damaging loyalty. The scatter-gun
approach limited the physical presence and relevance needed for economies of scale.

Arbitrage involves exploiting cost differences between countries to gain a competitive advantage
(Ghewart, 2007). Jack Wills relied heavily on its U.K. supply chain, resulting in high production and
operational costs that outpaced revenues in the U.S. U.S. Consumers, who are more price sensitive,
didn’t align with Jack Wills’ pricing when competitors such as Zara and H&M sourced low-cost
margins in regions such as China and Bangladesh, allowing them to offer competitive pricing without
sacrificing

Jack Wills applied all 3 strategies poorly, attempting to use Aggregation to some extent. Arbitrage
was ignored, keeping operations UK-centric. Additionally, adaptation, which in the saturated apparel
market where the consumer is the most important part, was the most overlooked, not adapting to
local preferences, putting stores in areas they assume match their profile. From this, we can digest
that Jack Wills’ research was lacklustre before internationalising.

2.2 FDI for Jack Wills

Porter’s Diamond Model

Porter’s Diamond Model provides a structured framework to evaluate the sources of competitiveness
advantage within a nation. Jack Wills, who was market-seeking foreign direct investment (FDI) in the
U.S., aimed to use the demand for preppy fashion to expand globally. Using Porter’s model, we can
see factors that influenced Jack Wills’ strategy and its alignment with aggregation.

Factor Conditions
Factor Conditions refer to the inputs available in a nation which enable a business to compete
effectively. The U.S. offered a large retail infrastructure, with well-developed shopping destinations
such as Boston’s Newbury Street and New York’s Fifth Avenue. However, competitors like Zara and
H&M used arbitrage to reduce costs and speed up production, outperforming Jack Wills.
Additionally, the U.S. has a large, experienced workforce, which is crucial for engaging customers;
however, the fragmented style of stores is reduced to staff continuity and ethos.
Demand Conditions
The U.S. market presented strong demand conditions for "preppy" fashion, aligning closely with Jack
Wills’ lifestyle branding. Affluent young consumers, particularly in urban and collegiate regions,
mirrored the company’s target demographic in the U.K. Competitors like Abercrombie & Fitch and
Ralph Lauren demonstrated the enduring appeal of this style, validating the market opportunity for
Jack Wills. However, U.S. consumers expected more localized products and competitive pricing,
which Jack Wills failed to deliver. The brand’s reliance on quarterly collections and premium pricing
was mismatched with American consumers’ fast-paced, cost-conscious preferences. This
misalignment limited Jack Wills’ appeal beyond niche audiences, such as expatriates and
Anglophiles, and reduced its ability to compete effectively in the broader market.

Firm Strategy, Structure, and Rivalry

The U.S. market was characterized by intense competition, particularly in the preppy fashion
segment. Established players like Abercrombie & Fitch and Ralph Lauren had already secured
strong market positions, leveraging deep cultural resonance with American consumers. These
brands offered a combination of affordability, accessibility, and aspirational appeal, making it difficult
for Jack Wills to differentiate itself. While unique in the U.K., Jack Wills’ reliance on its British
heritage branding lacked sufficient cultural relevance in the U.S. The brand’s marketing and product
offerings failed to resonate with mainstream American audiences, limiting its ability to build a loyal
customer base. Additionally, the company’s fragmented store network diluted brand visibility, further
weakening its competitive position in a saturated market.

Related and Supporting Industries

The U.S. had a well-developed retail ecosystem, including advanced logistics networks, marketing
agencies, and e-commerce platforms. These resources provided ample opportunities for foreign
entrants to scale efficiently and enhance brand visibility. Collaborations with local retailers, suppliers,
or digital platforms could have bolstered Jack Wills’ market presence. However, Jack Wills
underutilized these supporting industries and instead focused on standalone physical stores. This
approach limited the company’s ability to leverage e-commerce or form strategic partnerships, which
could have enhanced operational efficiency and expanded its reach. Jack Wills missed a critical
opportunity to strengthen its market position by failing to capitalise on the U.S.'s robust retail
infrastructure.

2.4 Resource and Capabilities

Using the resource-based view (RBV) framework delves into Jack Wills' internal strengths and
weaknesses during its U.S. expansion. RBV focuses on a firm's resources and capabilities, positing
that these internal factors are as significant, if not more so, than external market conditions when
determining the success of a business strategy (Barney, 1991).

The VRIO framework, an extension of the RBV, breaks down resources and capabilities into four
criteria: VRIO Framework Analysis

Resource 1:
Resource 2: Resource 3: Resource 4: UK-
British
Criteria Question University Premium Pricing Based Supply
Heritage
Affiliation and Positioning Chain
Branding

Value Does the - Adds niche - Cultivates strong - Appeals to - Supports quality
Creating resource value by brand loyalty in aspirational but inflates
add value? appealing to U.K. university customers in the operational costs
 Resource 1:
Resource 2: Resource 3: Resource 4: UK-
British
Criteria Question University Premium Pricing Based Supply
Heritage
Affiliation and Positioning Chain
Branding

expats and
Anglophiles in markets. U.K. market. in the U.S.
the U.S.

- Not rare;
How rare is - Distinct in - Rare in targeting - Rare in U.K., but
competitors have
Rarity the leveraging U.K. university commoditized in
leaner, more agile
resource? British identity. students. the U.S.
supply chains.

How difficult - Moderate; - Moderate; - Easily imitated

- Easily replicated
is it for British culturally specific by premium
Imitability by global
others to branding is but not scalable competitors like
competitors.
imitate? replicable. internationally. Abercrombie.

- Poorly aligned
Are policies - Strong in the - Creates rigidity
- U.K.-centric with U.S.
aligned to U.K. but not and inefficiency,
Organisation policies limit consumer
exploit the scaled hindering U.S.
localization. behavior and
resource? internationally. operations.
pricing.

- Fails to
- Effective in the - Competitive
differentiate in the
- Limited U.S. U.K., weak disadvantage due
saturated U.S.
Competitive appeal restricts internationally. to high operating
preppy market.
Implications competitive Ignored costs. Aggregation
Didn’t use
advantage. adaptation, and strategy not very
Adaption
data. effective.
correctly.

Market Entry

In 2010, Jack Wills entered the U.S. market with a wholly owned greenfield investment, opening its
first store in Nantucket, Massachusetts. (Drapers, 2010). A wholly owned greenfield investment
allowed the company to have full control over operations, allowing it to replicate domestic success
on international stage. (Peng and Meyer, 2019). Jack Wills relied on aggregation as its strategic
offering, trying to standardize its general offerings and marketing across the market to create a
unified global identity (Peng & Meyer, 2019), being exposed on a much larger scale, with a bigger
spotlight. While this aligned with Jack Wills’ initial ambition to internationalize as a ‘’Fabulously
British’’ lifestyle brand, it exposed vulnerabilities due to the U.S. market challenges.
Jack Wills’ decision to enter the U.S. was market-seeking FDI, targeting affluent, style-conscious
young consumers, mirroring its domestic demographic. The decision to open stores in premium East
Coast locations like Nantucket reflected an attempt to mirror its domestic demographic in the U.K.
The U.S., as the world’s largest apparel market, presented a lucrative opportunity for Jack Wills to
establish itself as a global brand. This ambitious move was driven by the company's desire to
compete in a larger, more prominent market with substantial demand for preppy, lifestyle-oriented
fashion.

However, the U.S. market posed challenges, including high operational costs with aggregation,
prominent competitors, and cultural differences that limited Jack Wills’ appeal. The reliance on
aggregation, and neglect of adaptation with arbitrage, as U.S. consumers favoured more casual,
affordable, and fast-changing fashion trends. These challenges ultimately highlighted gaps in Jack
Wills’ entry strategy and contributed to its withdrawal from the market.

2.5 Recommending Mark: What is the strategy for re-entry?

Jack Wills' previous attempts to enter the U.S. market offered valuable lessons about the need for
adaptation, research, and operational efficiency. Building on the analysis of Jack Wills' 2010 entry,
the following recommendations lay out a 'six-step strategy' for Mark, mitigating initial challenges to
existing strengths and aligning the brand with the U.S. market.

As mentioned, Jack Wills is built on its branding; being Fabulously British is their USP. Entry through
anything other than wholly owned FDI would likely lose this heritage; therefore, re-entering by
adapting the initial strategy would be best for Mark.

Conduct a comprehensive Market Audit

- Initial market entry, which came from advisory and demand conditions, should not have been
enough to warrant entry; market data is crucial.
- Mark needs to analyse if the market is worth entry before re-entry. Benchmarking against
Ralph Lauren, Abercrombie, and Zara would allow Mark to understand their success factors
and capabilities/
- Market research is needed to understand U.S. consumer preferences for preppy and casual
fashion, mainly targeting Gen Z, whose spending is 75% on fashion (Clearpay, 2021)
'Millennials and Gen Z in the UK: Next Gen Index', Clearpay, https://afterpay-
corporate.yourcreative.com.au/wp-content/uploads/2021/08/Clearpay_NextGen_UK.pdf
[accessed February 2022].
- Mark needs to understand regional demands, prioritising areas such as New York, LA, and
Chicago, where affluent and fashion-conscious consumers are concentrated.

Rethink Market Strategy

- The initial strategy was too risky. It lacked scalability and diversification and focused on
locations that matched its vision, not the potential audience.
- Adopt a phased, slow entry to the U.S. in areas where research shows positive results. Once
the brand is established, more stores in relevant areas will be opened.
- While gradually opening, Mark should focus on e-commerce as a launchpad, a cost-effective
way to penetrate the market, running target social media campaigns in suitable areas. With a
small number of stores, creating and using rarity as an intrigue for consumers.
- Collaborate with department stores to increase exposure and decrease operational costs.
Embrace adaptation

- Jack Wills' reliance on British identity without relatable locations limited appeal. Tailoring the
brand to the local market is essential.
- Mark should use the adaption as an example, develop to cater to local preferences,
emphasise seasonal trends, and align with current market values.
- Pricing should be tiered to appeal to a broad audience, balancing affordability with
positioning.
- Blend British identity with American culture in campaigns. Use influencers and use American
values.

Enhance Operational Efficiency, Introduce Artbitrage and Offshoring

- Initially, Operations and supply chains had many inefficiencies, leading to high costs and
reduced competitiveness. Improving these areas is key.
- Mark should create a more agile organisation, shorten production cycles, explore
manufacturing partnerships to respond to trends and improve forecasting.
- Utilise consumer analytics to see marketing strategies and focus, ensuring resources are
allocated to high-performing locations.
- Using information from the initial benchmark, look at how the competitor uses outsourcing
and integrate that into its own supply chain, allowing products to be produced quicker and
cheaper. Making sure to maintain quality.

Make Jack Wills' known!

- Jack Wills needs to recreate itself to resonate with modern-day consumers, market
effectively, and use resources toward the correct audience.
- Use the outdated British preppy identity combined with sustainability ethical fashion, which
are new consumer trends (add-in)
- Using analysis, create a flagship store as their hub for promotional events.
- Mark needs to ensure that Jack Wills adapts to digital marketing, using platforms like TikTok
to reach a younger audience.

Development Dynamic Capabilities

- Now Mark has created a foothold; Jack Wills needs to stay in the game.
- Mark needs to create a team to monitor trends and analyse consumer behaviour. Sensing
opportunities.
- The team needs to create rapid responses to opportunities it finds to capitalise on trends and
gaps, like competitors.
- Become more flexible and transform strategies to pivot quickly on feedback if the area does
well; expand through this.

Nonmarket Strategy Analysis: Firestone in Liberia.

The Ebola crisis in Liberia was one of the most severe public health emergencies in history,
resulting in over 4,800 deaths. Liberia’s underfunded healthcare system left corporations like
Firestone with the dual responsibility of protecting their workforce and supporting broader societal
needs. As Liberia's largest private sector employer, Firestone faced scrutiny to act responsibly,
balancing public health priorities with operational continuity (Firestone, 2024; Bach & Allen, 2010).
By mid-2014, Ebola cases were doubling every three weeks (Centres for Disease Control and
Prevention [CDC], 2014), overwhelming Firestone's facilities, which became the only operational
hospital in the region after public healthcare institutions collapsed (Firestone, 2024). Firestone’s
initial response involved leveraging its hospital facilities to establish quarantine centres and provide
care to employees and local communities. While these efforts mitigated immediate risks, their impact
on the broader Liberian population was limited, lacking formalised partnerships and scalability. This
report proposes a new nonmarket strategy using the IA3 Framework and Triple Bottom Line
principles, focusing on improving public health, sustaining operations, and strengthening Firestone’s
global reputation.

Proposed Nonmarket Strategy

Building on the analysis of Firestone’s challenges and stakeholders, this section presents a new
nonmarket strategy to address the Ebola crisis while maintaining operations and strengthening
stakeholder relationships. The strategy's alignment with the Triple Bottom Line (Elkington, 1994)
ensures the strategies prioritises economic, social, and environmental sustainability. Furthermore,
leveraging the IA3 framework (Bach & Allen, 2010) facilitates a structured approach to managing
stakeholder expectations.

Aims
1. Public Health: Provide effective healthcare solutions to mitigate the Ebola crisis, focusing on
employees and broader communities.
2. Operational Continuity: Safeguard the workforce and productivity to sustain rubber
production and economic contribution.
3. Reputation Management: Enhance Firestone’s global standing as a socially responsible
corporate leader through transparency and ethical practices.

Framework for the Strategy: IA3

A. Issue
The central issue is managing the Ebola crisis, which threatens public health, workforce safety, and
business operations. Firestone’s role extends beyond its immediate employees to supporting
Liberia’s strained healthcare system, addressing broader societal expectations for ethical corporate
engagement.

B. Actors
1. Liberian Government: A critical partner requiring coordinated efforts to stabilise public
health and manage societal expectations.
2. NGOs and Global Health Organizations: Partners in scaling up medical expertise and
resources.
3. Employees: Direct beneficiaries of Firestone’s health initiatives, critical to sustaining
production.
4. Local Communities: Dependents on Firestone for equitable access to healthcare and
prevention education.
5. International Media and Public: Observers shaping Firestone’s reputation by assessing its
actions.

C. Interests
 Government: Broader public health stabilisation and leveraging private sector support.
 NGOs: Effective resource deployment and collaboration.
 Employees: Health security and job continuity.
 Local Communities: Healthcare access and prevention resources.
 Firestone: Operational stability, public trust, and future economic opportunities.
D. Arena

1. Local Platforms:
o Engage government and NGOs through structured partnerships to coordinate
resource allocation and healthcare delivery.
o Use community forums to ensure equitable distribution of services and build local
trust.
2. Global Platforms:
o Communicate transparently with international audiences through media updates and
progress reports.
o Share best practices to contribute to global crisis management knowledge.

E. Information
 Healthcare Metrics: Regularly update treatment outcomes, infection rates, and prevention
efforts.
 Educational Outreach: Disseminate accessible and culturally relevant information on Ebola
prevention to employees and communities.
 Transparency Reports: Publish impact assessments to demonstrate accountability and
build credibility with stakeholders.

F. Assets
1. Infrastructure: Expand existing medical facilities and deploy mobile healthcare units to
underserved areas.
2. Financial Resources: Invest in medical supplies, healthcare staffing, and public education
campaigns.
3. Reputation: Leverage Firestone’s global recognition to attract partnerships and enhance
stakeholder trust.
4. Human Resources: Train additional healthcare workers and engage international medical
professionals.

Embedding CSR and TBL

Firestone's actions align with Elkington's (1994) concept of the Triple Bottom Line, which
emphasizes sustainable outcomes for profit, people, and planet:

Profit: Safeguarding Continuity and Mitigating Risks

A primary focus of the strategy is ensuring production continuity by prioritizing the health and safety
of the workforce. By fostering a secure and healthy working environment, the company not only
safeguards its operational stability but also enhances employee morale and productivity.

Additionally, the strategy includes measures to mitigate long-term operational risks. This involves
contributing to broader public health stabilization efforts, recognizing that a healthy community
supports a robust and resilient economic ecosystem.

People: Empowering Communities and Enhancing Well-being

The strategy extends healthcare initiatives beyond the immediate workforce to encompass
employees' dependents and neighboring communities. This comprehensive healthcare support
demonstrates a commitment to social welfare and inclusivity.

Collaborative partnerships with non-governmental organizations (NGOs) form another cornerstone

of the people-focused initiatives. Through these partnerships, the company aims to deliver
educational campaigns on Ebola prevention and hygiene practices, addressing critical public health
challenges and empowering communities with knowledge and resources.
Planet: Advancing Environmental Responsibility
Environmental stewardship is integral to the strategy, particularly in the management of medical
waste. The company is implementing sustainable practices designed to minimize the environmental
impact of healthcare operations. These practices ensure that medical waste is managed eco-friendly
and responsibly.

In addition, incorporating renewable energy solutions is a key component of the plan. By integrating
renewable energy into healthcare operations, the company aims to significantly reduce carbon
emissions, demonstrating a commitment to combating climate change and fostering sustainable
practices within the industry.

Recommended Actions for Firestone

Immediate  Expand Treatment Capacity: Establish healthcare units and isolation

Actions centres to address going demand.
(0-6  Education Campaigns: Education campaigns have proven critical in
months) mitigating health crises, as seen in the 2014 Ebola Response by the
International Federation of Red Cross (IFRC, 2015). Expanding healthcare
units is vital, given MSF’s experience in managing Ebola treatment centers
in Sierra Leone (MSF, 2015)
 Collaborations: Partner with NGOs for medical training, PPE distribution,
and resource sharing.
Mid-Term  Community Health Outreach: Extend healthcare services to underserved
Actions regions and neighbouring communities.
(6-12  Formal Partnerships: Develop agreements with the Liberian
months) government and global health organizations to enhance coordination and
resource efficiency.
 Transparency Initiatives: Publish regular updates on progress,
outcomes, and stakeholder engagement to build trust.
Long  Permanent Healthcare Infrastructure: Invest in building and equipping
Term medical facilities to ensure future resilience.
Actions  Crisis Management Framework: Establish systems for rapid response to
(1-3 public health emergencies, including supply chain planning and workforce
years) readiness programs.
 Sustainable CSR Programs: Develop year-round health and education
initiatives to improve community well-being beyond the Ebola crisis.

Ethical Considerations

The proposed nonmarket strategy for Firestone is designed to uphold the highest ethical standards,
ensuring that actions are equitable, transparent, and aligned with global health guidelines. Applying
Davis’s Seven Tests for Ethical Decision-Making ensures that corporate responses uphold
transparency and stakeholder equity (Davis, 1997).

Harm Test  Minimises harm by expanding healthcare to employees and

communities, reducing Ebola’s spread.
Publicity Test  Transparent communication builds trust and ensures accountability.
Defensibility  The strategy aligns with public health standards, making it defensible
Test before stakeholders.
Reversibility  Measures are fair and would be acceptable if Firestone’s leadership
faced similar risks.
Colleague  Collaboration with NGOs, government, and employee support
 validates ethical soundness.
Professional  Adheres to global health guidelines and CSR principles.
Organisation  Consistent with Firestone’s CSR goals, prioritizing sustainability and
community resilience.

Anticipated Outcomes
The proposed strategy balances corporate sustainability with societal needs, achieving outcomes
that benefit Firestone and Liberia:

1. Improved Public Health:

o Reduced infection rates through expanded healthcare access and education
campaigns.
o Enhanced resilience in local communities against future public health crises.
2. Operational Stability:
o Workforce safety ensures uninterrupted production and economic contributions to
Liberia.
o Long-term partnerships with government and NGOs reinforce Firestone’s ability to
manage crises effectively.
3. Enhanced Reputation:
o Transparent, ethical actions strengthen Firestone’s global reputation as a socially
responsible corporation.
o Similar efforts by ArcelorMittal Liberia, which invested in healthcare infrastructure
during the Ebola crisis, improved community trust and operational resilience
(ArcelorMittal, 2016)
4. Sustainability Impact:
o Investments in permanent healthcare infrastructure and waste management
minimise environmental harm.
o Year-round CSR programs foster sustainable community development beyond the
crisis.