A Critical Analysis of the Industry Environment

A CRITICAL ANALYSIS OF THE
INDUSTRY ENVIRONMENT

Individual portfolio for Atelier Chiang Mai
Environmental
Factors
Issues Pertinent to the industry Implications for the industry
Political Factor Workers’ rights and child labour law-
Apparel manufactures need to pay their
workers as per the industry standards
otherwise they can face legal actions
If importing from other countries increases
then manufactures get forced to buy
clothing’s locally.
Manufactures can focus upon
buying fabric locally for lower
price and high- quality cloths
as it will be much cheaper for
them as importing rates re
quite high.
Economic
Factor
Current pandemic situation of Covid-19 has
resulted in economic downtown because of
which exporting has been made attractive
and importing has been made expensive. As
a result, manufactures need to pay higher
prices for production. Due to this overall cost
of business activities has increased.
US and EU Compliance has
made importing from these
continents easier. Not only
this, this compliance also
makes sure that all the
handmade cloths fits customs
standards and laws of every
country worldwide.
Social Factor Today most of the people prefer quality of
quality and price. This is majorly because
today duplicate or first copy of branded
cloths are easily available. Even
organizations who give bulk order for cloths
manufacturing prefer quality rather than
price ad if quality of products is lower then
those products are returned.
They have set their on quality
check process in which
production passes through
three steps. First, fabric
quality control upon reception.
Second, mid production
process quality control.
Third, magnifying glasses
quality control before
packaging.
Technological
Factor
Technological advancement and
digitalization has made everything online
The atelier has made everting
online where their clients can
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due to which it has become important for
organization to enhance their online presence
select and place their order
online. Rather than fabric
check and quality check, and
manufacturing whole
production process is managed
online. After shipment
confirmation and billing is
also made online
Environmental
Factors
Due to increasing global warming and
emission of carbon dioxide. Environmental
awareness among people is increasing
drastically. consequence of rapid industrial
growth, Asia is also now facing some serious
environmental issues. Due to this
environmental law of different countries
have become struct and manufacturing
industry organizations are forced to reduce
their carbon footprint by reducing their CO2
emission.
The atelier needs to focus
upon reducing their carbon
footprint by adopting
renewable energy system so
that their CO2 emission can be
reduced.
Legal Factors It is important for this industry to focus upon
abiding by legislation applicable to their
industry like tax restrictions, export
restrictions, and inflation costs etc. not doing
so can result in facing legal consequences.
The atelier need to focus upon
updating their polices and
regulations on yearly basis as
per changing legislation.
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Porter’s force Strength Justification/ Reasons
Potential of Threat
entrant
Weak Entering in this market require large economies
of scale (Amelia and et. al., 2019). Not only
this getting large orders from top fashion
brands require reputation and brand image
which a bit difficult for new entrant to get
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