This chapter will describe the theoretical framework of this report. This is an important part of the report, as the theoretical framework will provide better understanding or serve as a warning/advice when planning or analyzing strategies on specific topics. Since UNIQLO is a clothing brand, there are several key factors that will come into play during their entry into the next European country. These are in fact common to any product-based business. First, their products must be transported from the country of production to the country of consumption. In this case it is important to find the best modes of transportation for this particular product, in terms of cost and time efficiency. Another factor would be market entry. There are many possibilities for a company to enter a market, but which one is best suited to its needs? It could be franchising, or perhaps licensing their brand to another already established store for their products to reach the country market. And finally, you need to come up with a marketing strategy. How will UNIQLO products reach the target consumer? To help us with these factors/aspects, several theories will be examined to uncover the complexities of each. 2.2 Market Entry Expanding a company into foreign markets is no easy feat. Many companies have tried this over the past few decades, and many have learned firsthand that in the world of commerce you need to be prepared and cautious. It is for this reason that many have dedicated countless hours, days, weeks, months and even years to research effective methods. Some did so by simply trying and subsequently failing. Others have used the data provided by failed attempts, as well as successful ones, to r...... middle of paper ...... In Europe and Asia, we tend to forget that this is also reflected in doing business and not just social interactions. Hofstede, Hofstede, and Minkov (2010) can provide a list of differences between cultures, globally, and how these differences can be analyzed, but this does not inform people how to act and react in other cultures outside of social interactions. According to Pye (1983), cultures can influence the way a negotiation proceeds, Maede (1969) shows that leadership is different depending on the culture of the leader and Naor (1986) and Tse, Russel and Nan (1988) conclude that marketing is no different. Taking this into account, it is of the utmost importance for UNIQLO to keep in mind that the marketing strategy they are using in Japan, or the rest of Asia, may not be as successful, if at all, when used on a European market.