In the fashion retail industry, supplier power is a relatively small and insignificant force. While clothes shoppers are typically individuals with little to none direct bargaining power (as compared to huge companies, buying in bulk, who might be the main clients in other industries), they have many alternative locations to shop for apparel and little incentive to stay with one particular company, giving them plenty of indirect bargaining power. In the case of the fashion industry, buyer power is a relatively large force. The first important force is the bargaining ability of buyers, who can choose to push down prices, not buy products, or switch retailers. Porters five forces - courtesy of ‘Grahams Child’ This article will attempt to analyze the viability of the fashion retail industry as a whole, by means of a Five Forces analysis. The fashion retail industry has a market value of several hundred billions of dollars, with the average price per product coming in at a healthy $19. The threat of substitution - the threat posed by the possibility of substituting a product or service in one market with something else The threat of new entries/entrants - the threat posed by new entrants in a market Supplier power - the ability of suppliers to increase the cost of their product or serviceĬompetitive rivalry - the intensity of competitive activity which might affect how much business a company receives, or how high sustainable margins are We Will Write a Custom Case Study Specificallyīuyer power - the ability of buyers to decrease the prices they pay
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