Group Assignment!

Group :
- Muhammad Zainuddin (1531503058
- Rafli Fauzi (1731501134)
- Rizaldy (1731501563)

Questions!

1. What has made the business model successful in the country?

2. What are the opportunities and challenges for business in the country?
3. What are the specifics of the country’s market?
4. How did the business enter into the country’s market originally?

Answers!
1. This business model become succesfull in Singapore because there’s a lot of
Indonesian people who likes to go holiday there, and shopping a lot. And in
the year lea jeans come “denim jeans” is a thing, and many people likes it. To
make the brand more successful Lea Jeans named their product as
American product, to get more market and to boost its image. Because
Indonesian people still has “abroad minded” which is means that the product
from another country is more interesting than the local one. And it becomes
so successful in Singapore because it’s successfully get many customer from
Indonesia.
And the key of success of lea jeans to still exists and have an ability to
compete with international/local product, because they always maintain their
good quality and market their product with rational price. So they key is “good
product and rational pricing”

2. There are many opportunities and challenges for this business in Singapore,
First thing first Singapore is a tourism country many people going there for
holiday, because Singapore famous for it’s best service industry from airlines,
hotels, and famous amusement parks Universal studio, aside from that
Singapore also the destination for fashion industry there’s many nice fashion
products available there such louis Vuitton, channel, and many high end
products. not only high end but there’s variety of products from low and
medium. Their market is very wide. So it’s become the great opportunities for
lea jeans in Singapore. And also many Indonesian people going there for
holiday, so lea jeans targeted their market to Indonesian people. because
they know Indonesia people loves to shopping in Singapore and it become
successful.
 There’s also lots of challenges that lea jeans face in Singapore. Such as their
products is new so they didn’t have market and people don’t know about their
produts. So they need to do a lot of marketing and need to introduce their
products more to the people. and also there’s many competitors such as
products that already exists such as levi’s which already famous and have a
big market. and also they have to give a high quality products to reach more
customer and maintain their customer relationship which is hard and takes
time to achieve.

3. Lea Jeans could be as successful as now absolutely because they have

specifics market in foreign market, Lea Jeans open market in Singapore
because it’s easy to start a business there. This is because there is an
abundant number of business opportunities for both locals and foreigners. In
fact, for foreigners, the list of requirements for registering a new business is
pretty basic: the business has to be legal, it must be registered as a PLC, the
business must not be registered for more than 6 months at the time of your
application, the foreigner applicant must own a minimum share of 30% of the
company and the business needs to have an SGD paid up capital of $50,000.

Taxes are reduced in Singapore. The income tax rate for companies that are
based there is 17%. However, these businesses are only expected to pay tax
if their taxable income exceeds $300,000 per year. If their income is less than
$300,000 per year, the tax rate is lowered to half the amount – only 9%. Also,
to support businesses and bring in more investors the government offers tax
exemption to new businesses. Not are taxes low, but there are also incentives
and benefits offered.

Contracts are readily and swiftly enforced. In fact, in 2014 Singapore

introduced a new litigation system which allows litigants to file their cases
online and gives the courts the ability to keep litigants and lawyers well-
informed about cases through e-mail and text messages. This makes it easy
to manage hearing dates. Singapore is known for having the shortest
resolution time worldwide with the average commercial dispute being settled
within 290 days.

Another element of what makes Singapore’s business environment so inviting

is how easy it can be to get construction permits. This is one of the quickest
places to secure a permit. So for business owners who are interested in
building a new structure, this is a huge benefit.

Based on that easiness Lea Jeans could be more efficiently and effectively
put a target market in Singapore like their segments are concluded from age,
25-35 years old. Although there are also many customers who are over 35
years old because they are old enough. But the core is 25-35 years old. Most
customers are men.
 In addition they also focus on their positioning market that still keep the
American products image to the customer in Singapore by branding value,
annually catalogs with current trends, and consistency of quality products.
they incredibly make an good strategy market and specific target to the
customer in Singapore itself, they also expand their products into few
categorizes. But they keep focusing on Jeans product especially in 606 dan
Next Gen products for Singapore target market, in others country Lea Jeans
provide Jacket, Wallet, and others based on customer demand.

4. Initially Lea jeans products were introduced in Singapore in 1973 to boost

their brand image. At that time, Lea Jeans was introduced as a product from
the United States. Because at that time Indonesians considered foreign-made
products (especially the United States brand) to be very cool and high-quality.
this method is done so that it becomes the choice of Indonesian people who
shop in Singapore, which at that time was still too "aboard minded". And also
because the majority of people who shop in Singapore are Indonesians, then
lea jeans apply this strategy.