Cs-H&M

2198 Words9 Pages
| Content Using Michael Porter’s 5 forces model, evaluate the importance of Barriers to Entry to the fast fashion industry. Support your arguments with evidence from the case study. (20%) | P.2 | Conduct a value chain analysis to assess H&Ms capabilities and derive its core competencies (35%) | P.3 | Based on these competencies identify the generic competitive strategy which H&M is pursuing (10%) | P.7 | Conduct a value chain analysis to assess H&Ms capabilities and derive its core competencies (35%) | P.8 | Question 1 Porter five forces analysis is a framework to analyze the competition within an industry and business strategy development. The author would like to discuss on threat of new entrants from following factors. Capital requirements There is not require a large capital outlay to entry the apparel industry. The competitor only set up a single independent retail store then starting to run their business. This factor have a low level of impact in apparel industry. Economies of scale The supplies cost is lowly resulting from increased production. This factor has an impact of barriers to entry to the industry. The apparel industry manufacturing is primarily out sourced to low- cost countries. This factor have a medium level of impact in apparel industry. Product differentiation Fast fashion is creating new, fresh products while also drawing consumers back to the retail experience for consecutive visits. It also makes it possible for new technologies to increase production and efficiency. New items are delivered twice a week to the stores, reducing the lead time between initial sale and replenishment. As a result, the shortened time period improves consumer's garment choices and product availability. This
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