Strategic Analysis of Second Hand Clothing Industry

Strategic analysis

Strategic Analysis 1
External Analysis
PEST
Political
 The government promoted the
domestic production of textile to
protect its cotton industry from
competition. Due to which the
demand of industry is decreases
(Rastogi, Trivedi, 2016)
Economic
 Recession affects the economy due to
which the demand of industry is high
as the people are not willing to invest
on new and expensive clothes.
 Labour rate is not affected the SHC
industry.
Social
Second hand clothing industry is the right
industry in order to reduce the global
warming.
The consumer prefers affects the demand of
SHC industry.
Technological
 Advance technology reduce the cost
of clothes and also helps to eliminate
the defects from the second hand
clothes so that the industry can
provide the quality of services to
consumer.
 Many technology industries are
established in America
Porters Five Forces
The threat of new entrants
 Low level of threat
 The less amount of invest is required
Bargaining Power of buyers
 Moderate bargaining of buyers
 There are various number of buyers

Strategic Analysis 2
to enter the market but the industry
gain the less profit $24billion as
compare to the clothing industry
(Burns, Dewhurst J, 2016)
who lives beyond under the poverty
line that is why the consumers like to
bought the less expensive clothes.
Bargaining Power of Suppliers
 Moderate bargaining power of
suppliers
 The suppliers of the industry are the
people who believe in donating the
clothes to consumers.
 There are large number of people and
the most of people are educated due
to which they believes in donate the
clothes that helps the industry to
supply the large number of clothes to
the poor people or establishing the
SHC market.
 Suppliers provide the clothes in free
(Value Village, 2018)
The threat of competitors
 Low level of threat
 Less number of companies enter the
market of the same industry
 More demand and less supply of
services
The threat of substitute
 Low level of threat
 Most services of the industry is free
 It is difficult for the other industries to provide the services in free