Innovation and Technology: Forever 21

Running Head: INNOVATION AND NEW TECHNOLOGY: FOREVER 21
Innovation and Technology: Forever 21
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INNOVATION AND NEW TECHNOLOGY: FOREVER 211
Executive Summary
The research paper focuses on Forever 21 downfall in the Australian marketplace. The paper
provides a clear idea regarding the porter’s five forces as well as the value chain model which
is necessary for the firm to look after so as to flourish in the marketplace. The paper also
focuses on the technology cycle and in which phase of the there phase of innovation cycle did
the firm falls under so that they can adopt the strategy according to the needs and wants of the
consumers and market. Lastly, the paper focuses on the recommendation regarding what are
the things that need to be done and the conclusion regarding the important factor that needs to
be the focus by the organization so that they can flourish in the domestic as well as in the
international marketplace.

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Table of Contents
Introduction................................................................................................................................3
Porter’s Five Forces...................................................................................................................3
Porter’s Value Chain..................................................................................................................4
Technology Cycle......................................................................................................................5
3 Phases of Innovation Cycle.....................................................................................................6
Recommendations......................................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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Introduction
Forever 21 is one of the fast-fashion retailers, who possesses its outlet all over the
world but its headquarter is in Los Angeles, California. The company is suffering a huge loss
in the Australian market. The company is on the verge of closing down in the Australian
marketplace and that is the main reason the firm requires to look after the market condition so
as to efficiently adopt a suitable strategy that will enable them to operate in an efficient way
possible (Bongiorno 2018). This is vital for the organization as the fashion in the Australian
market is growing and the firm can generate huge revenue if they adopt the proper strategy to
expand in the marketplace and to lure the attention of the consumers in the process.
Therefore, it is crucial for the company to look after the matter and to operate effectively so
that it can flourish in the Australian marketplace as well as the other international
marketplace (Luders, Cherbuin and Kurth 2015).
Porter’s Five Forces
As the firm operates in fast-fashion in the domestic and the international market so
there are other competitors in the market as well for the organization to look after and they
are Zara, H&M who are also operating in the Australian market as well (Kung’u 2017). There
is a high degree of rivalry that is going on between these companies. There are also threat of
the new entrant in the marketplace as the fashion is changing with the time and that is
essential for the firm to address so that they can compete with them as well (Zhao et al.
2016).
The entry of the new competitors in the market increase the bargaining power of the
suppliers are low as the buyers can easily switch from one brand to the other in the process
(Baker 2014). On the other hand, the bargaining power of the buyers is also increasing in the
process due to the availability of the option in the industry, which is also crucial for the firm