Industry Analysis and Possible Adaptations (pdf)

Added on - 30 Dec 2020

  • 14

    Pages

  • 3985

    Words

  • 15

    Views

  • 0

    Downloads

Trusted by +2 million users,
1000+ happy students everyday
Showing pages 1 to 4 of 14 pages
INDUSTRY ANALYSIS ANDPOSSIBLE ADAPTATIONS
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1a) Applying porter's 5 forces model on Apparel retailer industry in UK....................................1B) Using value chain model to analyse the internal business environment of marks andSpencer.......................................................................................................................................3c) Appropriate adaptation that are undertaken by Marks and Spencer in response to externalbusiness environmental forces....................................................................................................5d) Reflection on usefulness of Porter 5 forces model and its limitation....................................7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONApparel retailers sub sector is growing in the economy and they provide different types ofclothing for different age group people. This industry is gaining more market share than otherindustries in the economy. Marks and Spencer will be included in this essay which is involved inproviding the clothing for men, women and kids. This company is operating in various countriesand thus it has its global presence. Task that will be included in this assignment will includeporter 5 forces model to identify and analyse the current environmental influences on Apparelretailers sub sectors in UK economy. Moreover, it will include value chain model to analyseinternal business environment of Marks and Spencer. Also, it will provide appropriateadaptations for Marks and Spencer with regard to influence of external factors. Furthermore, itwill provide reflection on usefulness of Porter's 5 forces model and its limitations.a) Applying porter's 5 forces model on Apparel retailer industry in UKIn my opinion, The clothing industry includes various firms which are the retailers of theclothing and fashion accessories. The porter 5 forces model is applicable to the Apparel industryof UK and it includes threat of new entrants, bargaining power of suppliers, bargaining power ofbuyers, threat of substitutes and rivalry in the industry.I can say that there are Threat of new entrants because thereare various barriers for thenew entrants in this industry as this industry is very populated and have many retailers whichprovide barriers to the entrants in the market (Grant, 2016). There are various brands that are sopopular and they done not have any threat of new entrants as they have high reputation in theindustry. Therefore, there is no significant force in the fashion retail industry relating to newentrants. There are various barriers which includes high investment, lack of distributionchannels for new entrants, etc.Also, I have identified that bargaining power of suppliers is low and thusIt is aninsignificant factor as there are many suppliers in this industry as thus the firm have the power toswitch to other suppliers if there are conflicts with the particular suppliers due to high cost orquality of raw material (Potts, 2017). Most of the apparel companies get their products from thirdworld manufactures that receive few shares in profit. So, the power of suppliers in this industry islow and weak due to which suppliers in this industry provide low prices to retailers to retainthem in business.1
Furthermore, I can say thatIn the apparel industry the bargaining power of buyers ishigh because there are large number of retailers present in this industry due to which buyers havechoice to shift to other retailers to get the products at low prices (Lin and Ouyang, 2014). TheApparel companies in order to retain the customers in business spend high investment onmarketing to attract customers towards the firm as there is high competition in the industry.Thus, the bargaining power of the buyer in this industry is high.Moreover, I have identified that threat of substitute product in this industry is high .There are different firms that are providing innovative ways to increase their customer base andfor that they are using various ways such as online shopping, etc. to retain the customers inbusiness (Fazey and et.al., 2016). The threat of substitute in this industry is high as competitionis high and to increase the profitability and increase the customer base the retailers in thisindustry develop innovative product that will increase the profitability. Also, I have determinedthat those customers that cannot afford luxury brands there are substitutes that provide highquality products at lower prices.Also, the retailers in this industry face tough competition from each other as there aremany companies that provides different clothes for different age groups which increase thecompetition.There are large number of retailers in this industry that sells similar products (Evansand et.al., 2017). The competition in this industry is increasing fast as retailers are coming upwith new ideas to increase their customer base in this industry. Thus, according to me there ishigh competition among the retailers involved in apparel industry. In my opinion, There arevarious competitors of marks and Spencer that includes tesco, Aldi etc.2
desklib-logo
You’re reading a preview
Preview Documents

To View Complete Document

Click the button to download
Subscribe to our plans

Download This Document