I. T Essay

2. Introduction of company

Company Background

I.T is the company to be discussed in this business consultation report. I.T is a well-known fashion conglomerate with around 300 shops in Hong Kong. It produces products with their own name I.T, owns number of Hong Kong brands and at the same time distributes European, Japanese and Korean brands in its shops. I.T claims that it is a place for younger shoppers to find the best in fun, edgy casual wear, and promoting an idea that catering the young individuals with a distinct sense of style.

Business Process (Appendix A)

There is something different for I.T when comparing to its competitors in the Hong Kong market. For I.T, it sells its own brand as well as others brands’ products. Therefore, the

As mentioned above, there are two kinds of suppliers, which are raw materials suppliers and vendors. The former has low bargaining power while the latter has high bargaining power. Suppliers tend to cooperate with big company than small company because the demand for raw materials will be more stable. I.T is a big company, and it has a huge customer base, therefore I.T may have lots of alternatives in choosing raw materials suppliers. Since there

CB2500 Information

There are more than 20 vendors in all over the world. Every vendor has a distinct style which other brands cannot replace and difficult to follow. Thus, the bargaining power of them is high because there are little substitutes, and the cost of changing vendors is high. Once I.T wants to change another vendor, it has to spend time on doing research about the brand as well as the consumer market. I.T has low price sensitivity on vendors as raising prices would not affect much on its preference on their fashion style.

About the buyers of I.T, they have high bargaining power as well. There are lots of competitors in the market, examples including ZARA and h&m. They all sell clothes, which mean there are lots of substitutes of I.T. Buyers of I.T therefore has high price sensitivity, when I.T raises the prices of their products, buyers will turn to its competitors. There is low cost of changing to other competitors. I.T therefore has little control on raising their price, and buyers has high bargaining power.

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