A Level Business Studies - Influences leading to Clarks moving its production abroad
Discuss the main influences that are likely to have led Clarks to move all of its production abroad Clarks is likely to have been influenced by the growth of international competition which led to moving its production abroad. As the world has become more globalised and connected, Clarks has been forced to compete on an international scale with online retailers who can offer the same product at a cheaper price. Moving their production abroad to countries like China and Vietnam allows for Clarks to achieve lower costs as labour costs as lower there than in developed countries which means they can make a greater profit with each unit sold. This was important for Clarks to do as they previously had a slow response to change which put them at a disadvantage; they had to diversify their product by offering more designs that were modern and fashionable (whilst still conforming to the traditional idea of a ‘Clarks’ product). This means that they could achieve greater added value as a resu...
