The Mr. Jax business level strategy is product design and quality. How did they do it? The following is a list of Distinctive Competencies that put Mr. Jax in the lead of professional/career woman’s fashion
Mr. Jax hired Louis Eisman who was a well-known women’s fashion executive. At the time Mr. Jax didn’t focus on professional/career woman’s dresses and suits and Louis Eisman shifted the focus of the company into the professional/career woman’s market segment.
Quality of materials used. Mr. Jax purchased West Coast Woollen Mills Ltd. This acquisition, although it took time to be profitable, enabled Mr. Jax to take control of fabric production scheduling, design, and quality. At the time of market saturation in Canada most competitors used materials that were sub-par for the market segment.
The quality and craftsmanship of the garments Mr. Jax made were seen as high quality garments produced from high quality materials. The majority of the competition at the time was producing garments off-shore (in Asian) which lead to finished products which could be seen as inferior to those companies that produced a finished product only using North American materials and production lines.
Mr. Jax had also developed a reputation when it came to delivery of goods. Mr. Jax had seen delivery rates as high as 90% for (time and orders fulfilled), compared to the industry average of 75%.
Mr. Jax financial reports (see chart below for fiscal years 1981 to 1988) show that there was steady growth in the business but the market has reached a saturation point as seen by the net profit line. (revenue, COGS, Gross Margin, Expenses, Net Profit). Porters Five Forces:
Threat of New Entrants: High. Entry into the market can easily be done by any firms, large or small, with very little startup costs to do so.
Threat of Substitutes: High. In