Impact of Information Technology on Competitive Advantage in the Fashion Industry

Information Technology

Table of Contents
Information Technology..............................................................................................................1
INTRODUCTION.......................................................................................................................3
Analysis of Competitive Environment.........................................................................................4
Value Chain Analysis..................................................................................................................7
CONCLUSION............................................................................................................................9
REFERENCES..........................................................................................................................11

INTRODUCTION
Information Technology which refers to creating, storing and sharing of information in
electronic format. This has become very important part of all business organisation because
this has made very easy generating and sharing information. This report includes River Island
for the discussion over impact of Information Technology to gain competitive advantage.
River Island is a private company which is operating in Fashion, retail, textile and clothing
industry. River Island was founded in 1948 by Bernard Lewis and Brothers. River Island is
headquartered at London, England, UK. Products of this company are Women's, Men's and
Children's Clothing, Footwear, and Accessories. Presently River Island is being owned by
families of Bernard and David Lewis. Parent company of River Island is Lewis Trust Group.
This is divided in three parts which are women's, men's and kidswear (Liu and et.al., 2019).
This brand was started in 1948 and by 1965 this had an empire of 70 stores in UK and this was
renamed as Chelsea Girl. This Chelsea Girl became first UK fashion Boutique chain. This
brand also have its stores in countries other than UK. Later Mens wear and kids wear were
added in River Island and Chelsea Girl was reintroduced in River Island Stores. In relation
with products which are provided by River Island to its customers This includes all types of
clothing for women, men and kids. This collection of clothes includes formal, casual and
party-wear clothings, clothing for special days, clothings which can fit specific size and
trending clothing and offers of the River Island which includes shopping and clothing at a rate
lower than usual. For man all types of clothing and in kids section their collection is further
divided in girl and boys collection of kids differ on the basis of their age. These products of
River Island are available at its website and its stores. Other than clothing River Island also
offers Shoes and accessories to its customers this is a wide collection and is divided in all the
categories. Various type of shoes are also provided by River Island are sports, casuals and
formal shoes and boots. Other than these regular products website of River Island also
showcase various collection of the brand and their new arrivals. This inform customers what is
latest and specific collection in which customers can be interested. In one manner this is
possible through information technology that River Island can sell its products from its
website and customers can order whatever they like and they are being offered. This report
includes impact and use of information technology on business and how River Island can take
competitive advantage from its information technology and technological advancement.

Analysis of Competitive Environment
There are various factors that drive a business and its performance. Among all these
factors competitive environment of business is one significant factor. Competitive
environment includes all the competitors of a business organisation and how they affect
business' profitability (Kibria, Al Amin and Rifat, 2017). To ensure impact that competitors
make on business it can be said that competitors are the one who can take the customers of a
business organisation and share its profitability when there are more number of competitors
than participants of the profit increases. This is why it becomes necessary for all business
organisations' to analyse their competitive environment and what impact it can make on the
performance of business.
Porter have developed a model which is known as Porters' five forces model this includes five
competitive forces and business can understand what impact each factor make on the
performance of the business.
These five factors and five competitive forces are-
 Industry Rivalry
 Threat of new Entry
 Threat of Substitute Product
 Bargaining power of Suppliers and
 Bargaining power of customers
Threat of New Entry
This refers to those who can make entry in the industry and can increase the number of
existing competitors. More number of existing and new competitors increase the chances of
the firm that it will have to share its market and profitability (Lewis, 2017). Chances of new
entry in the industry increase when there are less barriers of entry. Barriers of entry refers to
those factors which resist entry of new firm in the industry. These are capital required, cost of
switching, legal policies and restrictions, product differentiation. All these are factors which
create barriers to entry that if the firm which intends to enter in clothing and fashion industry.
But these are less required when firm operates and start at small level and these are also a
competitive force for River Island. But these are not big threat and those which are significant