Assignment on Bargaining Power PDF
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Added on 2021-02-20
Assignment on Bargaining Power PDF
Added on 2021-02-20
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MEGA TRENDMEGA TRENDInnovation comes from the regeneration of the idea to keep the operation, product andservice fresh. Chic By Choice deals in the current fashion trends they always have tomake the innovation and keep updated in the industry. Chic By Choice is the companythat always look for the innovative services that they can provide it to their client andtry to keep it affordable for most of the people. To come up with the innovation for thecompany it is necessary to do the segmentation, targeting and positioning of theproduct to make the innovation successful.Segmentation- As all the consumers are different so the segmentation is being donewith the different sort of needs according to the market, for the Chick By Choice it isessential to categorise the market are:Geographic Segmentation- In this the company is being divided in the differentmarket location. Consumers are divided according to the locality having the same areais being assumed to share the similar needs and the wants as per the trends but this isnot happened always (Gerrikagoitia and et.al., 2015).Demographic Segmentation- This is being done when the market is being segmentedon the basis of age, gender, marital status, occupation, level of education and manyother factors that is being taken into the consideration. It is the most accessible and thecost effective way to do the identification but it is not necessary that this will accurateor the useful.Socio- cultural segmentation- This division of market is being done by the use ofsocial cultural variables that includes family life cycle, social class as these factorsinfluence the need of the consumers and the market is being segmented on this basis(Henninger, Alevizou and Oates, 2016).Hybrid segmentation- In this approach the company use the multiple forms of thesegmentation in order to identify the segments properly that in which area what trend isbeing required. This requires the strategies for the segmentation. Targeting- As the company has to target the fashion trend of the locality byconsidering the demand such as it is located near the college are they have to considerthe trends according to the adults at the same if they are having the school nearby in itslocation than they have to maintain the trends according to children's. Target market isone of the best matches of apparels provided by the company that helps in themaximisation of efficiency and the effectiveness in the marketing. Small mediumbusiness have to identify the target market (Gerrikagoitia and et.al., 2015).Positioning- This will be considered as the strength and weakness of the organizationalso consider the need of the consumers, market and position of the competitors. It isthe process to establish the image and do the identification of brand of product so thecustomers can perceive in the certain way. Positioning must be the relevant as per thecustomers that helps them in doing the purchase decision (Mason and et.al., 2015).Strong positioning of brand enable that the store is having the credible and sustainableposition in the minds of customers. Positioning can be done according to the lifestyle,problem solver, present branding and many other ways.Chic By Choice they have to do the continuous improvement in their product by understanding theneed of market. For this porter's five forces areBargaining Power of Supplier- As the Chic By Choice deals in the fashion industry products andgive the cloths on rent so in this the supplier power is relatively small and insignificant in force.This force analyse about how much of power a business supplier is having. Supplier plays on thebargaining power by even threatening to raise the prices, or they may lower the quality.Bargaining Power of Buyer-Bargaining power of the buyer in the apparel market is important toidentify the buyers. Women's having the standard body size purchasing the new retail apparelconsidered as target buyers. As the buyers in this industry holds the strong position as they arehaving high proportions of purchases in the industry. Through the price cut the bargaining power ofbuyer in this industry is noticeable (Prothero and McDonagh, 2015).Threats for Substitute- Demand of the product in the fashion industry is affected by the cost andfrom its substitute available in the market. As in the market there are many other brands of clothsgiving the apparels on rent. This impact the relative cost of its substitute product goes down at thesame growth of the industry is negatively influenced. Substitute products are considered as thethreats to industry so it is important to maintain the customer loyalty.Competitive Rivalry- As the rivalry competition is high in this as when there is just a fewbusinesses that equally sells the product and service even when the industry is growing and at thesame now the consumers can easily switch to its competitors that offers the little cost.Threats for new entrants -The positioning of the existing firms will be stronger so there is thebarrier for them to enter in the market (Chen, Kazman and Matthes, 2015). So if the barrier toentry is low than there must be having the high chance of threat to new entrants and it is vice versa.Therefore, the barriers to entry is very important in determining the threat for the new entrantsReferences: Chen, H.M., Kazman, R. and Matthes, F., 2015. Demystifying big data adoption: Beyond IT fashion and relative advantage. InProceedings of Pre-ICIS (International Conference on InformationSystem) DIGIT workshop.Gerrikagoitia, J.K., and et.al., 2015. New trends of Intelligent E-Marketing based on Web Mining for e-shops.Procedia-Social and Behavioral Sciences.175. pp.75-83.Henninger, C.E., Alevizou, P.J. and Oates, C.J., 2016. What is sustainable fashion?.Journal of Fashion Marketing and Management: An International Journal.20(4). pp.400-416.Prothero, A. and McDonagh, P., 2015. Introduction to the special issue: Sustainability as megatrend II.Journal of Macromarketing.35(1). pp.7-10.
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