Industry Analysis and Possible Adaptations

Industry Analysis and Possible Adaptations 0
Title: The Retail Brand-Marks & Spencer
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Industry Analysis and Possible Adaptations 1
Contents
Introduction......................................................................................................................................1
Reflective Essay on Industry Analysis and Possible Adaptations...................................................2
Adaptations to be undertaken in Response to External Environment.............................................7
Conclusion.....................................................................................................................................10

Industry Analysis and Possible Adaptations 2
Introduction
The customer and market needs must be streamlined with the development cost and return on
investment must be taken into account. Industry analysis and possible adaptations analyzes the
different approaches for determining how competitive is a specific market and consequently how
the market can profitable it can be for a fashion Industry. The framework works on value chain
analysis and helps in analyzing operating environment in which the product or service is
working. How to decide what makes the retail and apparel industry unique? How can the
individuals work in the most effective and productive methods to achieve the results? Porter Five
Forces Model helps to put your strategy into action.
Reflective Essay on Industry Analysis and Possible Adaptations
The Fashion retail industry is known for having the market value of billion dollars and
the average price being at nineteen dollars.
The usefulness of the Porter’s 5 Forces model in understanding the business
environment
In my opinion, the viability of the fashion retail industry can be viewed through the help
of the Porter Five forces model. The first force of this model is Buying Power. The purchasers
have the ability to reduce the price of the product or service. The primary force is from the
bargaining ability of the purchasers who will help in pushing the prices down and not purchase
the products and switching retailers. In this fashion industry, purchasing power is known to be
the large force. Clothing shoppers will be typical individuals with none towards little bargaining
and this is comparable with huge companies who purchase in bulk and can be the main clients of
various industries. The individual buyers have an alternative places to do shopping for the
apparel and take small part of incentive for staying with 1 company and providing sufficient

Industry Analysis and Possible Adaptations 3
indirect bargaining power (Dulčić, Gnjidić and Alfirević, 2012). There can be fewer buyers for a
given product and this means prices may go down. If buyers will be large, sellers can decide for
not to supply to a few of them as other buyers can step in.
The second aspect is the Supplier power. According to me, it can be described as the ability
of distributors towards increasing the product cost or service cost. In the retail fashion sector,
supplier power is regarded as a relatively insignificant and small force. There are very less
fashion apparel companies that source the services from third-party distributors and receive the
profits in small amounts. Suppliers are known for having lesser control over fashion industry.
These are regarded as dispensable and will remain swapped too. The prices for the fashion
apparel industry are considered as lower and will stay until the development gaps are shutting
down significantly. It is essential to answer these questions- What is the supplier power in the
industry. How the actions will have an effect on cost, supply, and developments.
The third significant aspect is Competitive Rivalry. It can be described as the intensity of
competitiveness and activities that can have an effect on how a business or the company receives
and what is the sustainability margin ratios. The retail and fashion industry can be regarded as
interesting as it analyzes the competitiveness rivalry intensity. As we can see that the numbers of
retailers are large in the market who is selling similar products. There also exists a brand concept
through which companies sell the garments at very extraordinary rates. There has been a lot of
innovation in fashion market and also becoming saturated with the similar services
(Krishnamurthy, 2010). The fashion industry is going through a phase which is very difficult to
get in and this is also known as the race towards the bottom which will not be considered best for
retailers. All the resources are at organization disposal and this can be put into market shares and
sales to know what is the intensity of competitive action and how can this be countered.