Harrington Collection “Sizing Up the Active-Wear Arket”
2012
MKTG 675
(Advanced Marketing)
Dr. Callow
Harrington Collection
“Sizing Up the Active-Wear arket”
Final case study
OLUWASEYI OMOKANYE
[Type the company name]
1. Apply Porter’s five forces model to determine the overall attractiveness of the women’s apparel industry. Within the context of Porter’s model, how would you categorize the growth potential for the industry as a whole? What is the average pricing trend in women’s apparel, and what are the main factors that are leading to this trend? Where is channel power concentrated, and why?
I.
Intensity of Rivalry: the intensity of competition in this industry is high. As we can see that many brands are competing for shelf space and market share. Even though the industry was moderately concentrated, players offered similar products and most of them were looking if not applying growth strategies.
II.
Threat of New Entrants: There is low entry barrier with competitive pricing in the apparel industry due to the ease of outsourcing production in developing countries.
Although there are restrictions and regulations. With outsourcing production, it eliminates capital expenditure and any overhead associated with manufacturing cost.
Hence, with low barrier, industry player are pushed to vertically integrate. The appeal of the women’s apparel within the industry will be continuously low due to the increase imitation established of companies with various brands.
III.
Threat of Substitute Product: with this model is relatively low as there are very few equitable substitutes for women’s apparel. Hence, customers switching to substitutes are less likely to happen because there are not many apparel to substitute women’s suits.
However, with Harrington’s Active wear line, customers can choose to switch to other alternatives than wearing an active wear.
IV.
Bargaining Power of Supplier: I would say for this force that it is moderate because there is willing and cheap labor
MKTG 675
(Advanced Marketing)
Dr. Callow
Harrington Collection
“Sizing Up the Active-Wear arket”
Final case study
OLUWASEYI OMOKANYE
[Type the company name]
1. Apply Porter’s five forces model to determine the overall attractiveness of the women’s apparel industry. Within the context of Porter’s model, how would you categorize the growth potential for the industry as a whole? What is the average pricing trend in women’s apparel, and what are the main factors that are leading to this trend? Where is channel power concentrated, and why?
I.
Intensity of Rivalry: the intensity of competition in this industry is high. As we can see that many brands are competing for shelf space and market share. Even though the industry was moderately concentrated, players offered similar products and most of them were looking if not applying growth strategies.
II.
Threat of New Entrants: There is low entry barrier with competitive pricing in the apparel industry due to the ease of outsourcing production in developing countries.
Although there are restrictions and regulations. With outsourcing production, it eliminates capital expenditure and any overhead associated with manufacturing cost.
Hence, with low barrier, industry player are pushed to vertically integrate. The appeal of the women’s apparel within the industry will be continuously low due to the increase imitation established of companies with various brands.
III.
Threat of Substitute Product: with this model is relatively low as there are very few equitable substitutes for women’s apparel. Hence, customers switching to substitutes are less likely to happen because there are not many apparel to substitute women’s suits.
However, with Harrington’s Active wear line, customers can choose to switch to other alternatives than wearing an active wear.
IV.
Bargaining Power of Supplier: I would say for this force that it is moderate because there is willing and cheap labor