Leadership in Business: Industry Analysis of Fashion Industry

Leadership in
business

Leadership 1
Questions-Answers
1.
Industry Analysis of Fashion Industry
Porter’s Five Forces Framework
The threat of new entrants  Moderate level of threat of new entrants
 According to case study, it has been
seen that the women’s enter the
industry with the high qualification of
retail fashion industry.
 However, it is difficult to enter the
fashion industry because the exiting
fashion retailers have high brand image
in the market due to which they face the
issues.
Bargaining power of Buyers  High Bargaining Power of Buyers
 There are many famous fashion outlets
and brands that provide the high quality
of clothes.
 Nowadays, fashion becomes the
necessity for the people due to which

Leadership 2
they buy fashion clothes in high level.
 Consumers have many choices to buy
the product as there are many brands
and fashion outlets.
Bargaining power of suppliers  High bargaining power of suppliers
 Brands have high purchasing power
due to which they can switch from one
supplier to another.
 Low fees to switch with the new
suppliers.
 Brands also have the financial power
that can easily influence prices.
The threat of substitute  Low level of threat of substitute
 The fashion industry market is growing
with the high technology due to which
it is difficult to compete the other
industry
Threat of competitors  High level of threat of competitors
 In Fashion Industry Five Forces,
Pratap, suggest that these companies
provide the quality of product and