MISSPAP: Strategic Analysis of Fashion Retailer Using Porter's Model

This report analyzes MISSPAP, a UK-based online fashion retailer, using Porter's Five Forces framework. The analysis begins with an overview of MISSPAP's business, including its establishment, market position, and product offerings. The core of the report examines the five forces: the threat of new entrants, competitive rivalry, the threat of substitution, supplier power, and buyer power, specific to the fashion industry. The report also examines MISSPAP's objectives, focusing on segmentation, targeting, and positioning strategies. The report identifies key factors influencing MISSPAP's competitive landscape, such as the high threat of new entrants due to changing trends and low barriers to entry, intense competition from other companies, and the potential for product substitution. The report concludes with recommendations for MISSPAP to improve its market position. The analysis highlights the importance of understanding market dynamics and strategic decision-making within the fashion industry.

MISSPAP is a UK-based online design retailer, went for 16–multi year olds.
The business was established in 2006, and had deals in FY2018 of nearly
£580m. It works in claim brand design attire, with more than 36,000
products. MISSPAP was established in 2006 by Mahmud Kamani and Carol
Kane, , who separately fill in as gathering official administrator and an
official director and recently provided high road chains, for example, Primark
and New Look. MISSPAP's center items incorporate dresses and tops, with a
determination of more than 27,000 styles of apparel. CEO Carol Kane claims
MISSPAP can separate itself from its nearest matches, as the entirety of their
garments extents are possessed marked with normal costs of £17 as of March
2014, containing 9000 attire lines. With an essential spotlight on the 16–
multi year maturity gathering, it offers garments to more than 100 nations
and as of June 2014 had seven noteworthy markets, including the UK, the
US, and France
BACKGROUND
POSTER
Threat of new entrants- In fashion industry due to change in trends there is
high threat of new entrants. Here, more small companies will try to enter in the
market and offer new products. Besides this, there are less entry and exit
barriers which allow business to enter. Moreover, it requires less capital to be
invested. Thus, new business can enter in it and provide latest fashion wear.
Competitive rivalry – It refers to the competitive rivalry that exists in the
industry. In fashion market there are many companies which is providing
variety of products. So, there is intense competition at present.
Threat of substitution- when familiar products exists in the market it can be
easily substituted. This is because people like to switch products if there
change in price or taste or preference. In fashion industry there are not so many
substitute exists but people may avoid purchasing latest trends. Similarly,
customers can switch from MissPap to another company.
Supplier’s power- A supplier delivers final products or services in the market.
Thus, they can easily influence the price of products.So, when suppliers are
relatively many then buyers can easily switch from one supplier to another. On
contrary if they are small prices drives. In case of MissPap the supply goods
with few suppliers. So, they are highly dependent on them.
Buyer’s power- Here, it refers to the number of buyers that can influence price
of products. When there is large customer base prices can not be influenced.
On other hand when customer base is low prices are easily influenced as they
can switch from one company to another. Thus, MissPap customer base is
small. So, in this case customers can drive prices.
RATIONALE
Segmentation – It is the first method in which market is segmented on basis
of various elements such as demographics, psychographic, etc. This is done
because it makes it easy to identify target market. Moreover, the main benefit
is population can be divided on basis of age, gender, income level, etc. So,
MissPap can expand their market and segment it on basis of gender. It will be
a great opportunity to develop a customer base in UK.
Targeting – It is the second step in which target market is selected after
doing segmentation. This is done as it helps in identifying specific segment
among population. It is done on basis of certain criteria and helps in finding
scope, size, etc. of that market. MissPap can develop new products for men.
They can provide clothing items for men of age between 20- 35. By this
customer base can be increased.
Positioning – Here, the product is positioned in the market. MissPap can
position their products in latest fashion. Also, they can create a different
section of men clothing in their website. By this it will be easy for them to
attract target market. Apart from it, new products can also be positioned by
offering discounts on it.
OBECTIVES
Amorós, J.E. and et.al., 2017. Necessity or opportunity? the effects of State
fragility and economic development on entrepreneurial
efforts. Entrepreneurship Theory and Practice, p.1042258717736857.
Bjerke, B. and Gaddefors, J., 2017. 2. Starting a business venture rationally or
naturally–exploiting an opportunity in space or developing a place. Research
Handbook on Entrepreneurial Opportunities: Reopening the Debate. p.68.
Cooper, R.G. and Sommer, A.F., 2016. The agile–stage‐gate hybrid model: a
promising new approach and a new research opportunity. Journal of Product
Innovation Management. 33(5). pp.513-526.
Diochon, M. and Ghore, Y., 2016. Contextualizing a social enterprise
opportunity process in an emerging market. Social Enterprise Journal. 12(2).
pp.107-130.
REFERENCES