PORTERS FIVE FORCES ANALYSIS • COMPETITIVE RIVALRY (HIGH) In both the large enterprises as well as the small enterprises there are many competitors. All the brands have started investing huge amount in the R&D to renew their products so, as to capture the market share. Therefore, H&M will always have to be quick and stylish at the same time to survive and maintain its position along with the changes and competition. BARGAINING POWER OF SUPPLIERS(LOW) The bargaining power of the suppliers is low as there are huge numbers of suppliers and manufacturers in the fashion industry. To meet the requirements of the company H&M has more options by buying and merging with the suppliers.
Each of their brands offer a different or unique factor that attracts specific consumers and their needs. Rivalry in the department store business is high because of their current competitors and new ones emerging online. A threat of a new entrants is low due to a high amount of investment required. Because Macy’s is just a store that sells various products, the treat of substitute is high because consumers can get the same products elsewhere. Macy’s two main weaknesses include a slow growth on their return on investment and the high volume of employee
The privatization of the prison system has made it so that individuals who have committed a crime are no longer seen as people but as profits. Prisons receive more money and more laborers (which they grossly underpay) with the addition of new inmates, so it is in the best interests of prison corporations to increase the volume of prisoners as well as expanding the length of sentences. Private prisons started out as a cost-effective way to house inmates, but after yielding large investments and profits, they began lobbying for new and harsher punishments resulting in America having the highest levels of incarceration in the world. In 1984, the first private prisons were created, the founders claimed that the prisons funded by the government but run privately would cost considerably less than prisons run at the county, state, and federal level. The massive overpopulation of prisons in the United States led to the idea that capitalism could help to reduce burdens and responsibilities of running prisons on the government.
Q3. Like stated above, the competitive forces that were evident in the luxury goods industry are the competitiveness of rivals such as Gucci, Prada, Ferragamo and Dolce and Gabbana, to mention a few, the aggressiveness of substitutes to luxury goods who were catering to the many other customers who did not have enough income to purchase the high priced luxury goods, the threats of new entrants into the luxury goods market, not forgetting the bargaining power of both buyers and suppliers in the luxury goods industry. In the mid-1990’s consumer preferences began to change and veered strongly towards Coach’s rivals within the luxury goods industry such as Dolce and Gabbana, Versace, Ferragamo, Gucci and Prada among others. These well-known and loved Italian and French
Political change in Asia is inclined to lead to increase labor costs, thus increase the production costs of sneaker companies. Like in Malaysia, you have to pay for it at your local store to buy tennis shoes. On the other hand, reduced labor costs will force you to pay less for new shoes. Trading allows consumers and countries to get access to goods and services which are not available in their own country. Almost every product in the international market can be found at food, clothing, accessories, petroleum, jewelry, stocks, money, alcohol and water part.
However, GE is a huge company in comparisons to their competitors and through diversifying their business GE is able to broaden their competitive scope. Furthermore, GE relies a lot from its suppliers in delivering those raw materials and components used in their product. Therefore, a disruption in deliveries from their suppliers may cause a huge effect on their businesses. Each questions asked in the playbook corresponds to different aspect of the business. The first question, for example, is a question asked on the market condition of each of their business unit (BU).
It started to export garments in the mid-1990s, but after quota restriction of the Multilateral Agreement (MFA) was removed in 2005, it cause the country face the increased competition in the global market ("Enhancing Export Competitiveness the Key to Cambodia’s Future Economic Success", 2016). This sector is based on low wages, more labor and a liberal trade and investment regime which causes this intensive industry has grown in Cambodia and has become a major source of foreign investors. Mostly, Investors also brought technology and supervisory personnel from overseas to help solve Cambodia's disadvantages such as in infrastructure and human capital. Unlike other country, Cambodia started garment industry because the inflow of Foreign Direct Investment (FDI) which cause the garment sector are insufficient in the domestic supply chain and supporting industries like textile industry. These insufficient causes the industry need to import raw materials, fabric and other inputs from another country instead mainly from China, Hong Kong ("Enhancing Export Competitiveness The Key to Cambodia’s Future Economic Success", 2016).
The countries where the trafficking levels are the highest are also countries that are less developed. These countries are not stable in political, economic, or social aspects that lead to people finding ways to make more money through illegal means. Also, the trafficked victims become involved in the industry while they are out looking for better paying jobs. The trafficking industry provides cheap labor so that the goods can be sold off to other countries for lower prices. Although cheaper prices seem like a good deal for the consumers, there are the laborers who produce the goods who barely get paid enough to sustain a living.
Therefore, fashion or clothing firms with quality and easy to navigate web page will attract more customer (Chaturvedi, Martich, Ruwadi & Ulker, 2013). Furthermore, it is noted that customers, particularly from developed nations like UK, France and Italy are more and more concerned about their health and the report on individual health expenditure over the last decade by OECD (2011) has confirmed that. The report shows that customers are becoming more inquisitive in the type, nature, origin and the processing method of materials in which, apparel and clothing firms uses in producing their product. Thus, demanding for transparency and accountability. Consequently, many customers have gone green and they are persistently advocating for sustainable and ethical activities of firms (Johansson, 2010; Pookulangara
1. Retail Business Environment The US apparel industry is large, mature, and highly fragmented. This industry has stretched the boundaries of its creativity and imagination in finding new ways to increase selling opportunities and achieve competitive edge globally. The global economic downturn has had a severe effect over the apparel industry, but the denim market has regained its pace relatively faster as compared to other apparel segments. Denim jeans have become a necessity and wardrobe staple as it offers comfort and a longer life span compared to other types of apparel.