Although an American brand, Holden apparel is made in China. The company would like to manufacture in the United States, but government regulations, labor costs, and high corporate tax rates are too heavy a burden. Availability of materials is another factor, as many of the pieces that Holden needs, like buttons, snaps, and fabrics, would still have to be brought in from Asia even if the garment were made domestically. In addition, garment making requires skilled laborers, and founder Mikey LeBlanc says that the United States lacks a manufacturing base to do the job. For any company that sources materials and labor overseas, shipping is a vital, ongoing concern, and over time, LeBlanc has consolidated his shipping by using a single distribution hub in China to increase efficiency and reduce costs.

Discussion Questions:

1. Which stage of globalization characterizes Holden Outerwear’s international involvement?

2. Identify Holden’s primary approach to entering the international market. What are the benefits of this entry strategy?

3. What are the challenges of international management for leaders at Holden?