SG7001 Activity 4 Assignment Sample
Strategy Operations And Partnerships
| Environmental factors | Issue pertinent to the industry | Implications for the industry |
| Political factors | Political stability and simplified access towards import and exports | The clothing and apparel industry of Thailand has been able to export around $3.42 billion amounts of textiles and clothing in the East Asia and the Pacific market (fibre2fashion, 2021). Moreover, USB 1.24 billion worth of material was also shipped to the US market. |
| Economic factors | Increasing insulation rate along with corporate tax rate has been creating a potential barrier for the Thailand cloth manufacturing industry | Thailand has been experiencing 1.81 % inflation rate as compared with -0.43% during the previous year (O’Neill, 2021). It has been taking the price of clothes comparatively higher. Moreover, 20% corporate tax rate was noticed during the end of 2020, which reflects to be stable over the years (tradingeconomics, 2021). This corporate tax rate has also been cutting the profits for the cloth manufacturers in Thailand. |
| Social factors | Sustainability | The Thailand cloth manufacturing industry has implemented sustainable practices concerning their waste management aspects. In this aspect, recycling and reuse of clothes are also noticed. |
| Technological factors | Technological advancement | Thailand’s cloth manufacturing sector has been focusing on creating collaboration and partnerships with Italy’s textile machinery industry in order to implement advanced technologies (textile-future, 2019). Because of this, the demand for reducing production cost and environmental impact can be obtained along with increasing productivity. |
| Legal factors | Occupational Safety, Health and Environment act (ilo, 2021) | The employees from the Thailand cloth manufacturing sector are able to consider occupational safety and health wellbeing. |
| Environmental factors | Avoidance of harmful chemicals and usage of natural plant derived dyes | The cloth manufacturing industry in Thailand does not provide any harmful consequences to the environment due to avoiding harmful chemicals along with preparing natural and plant derived dyes for coloring the natural fabrics. |
Table 1: Environmental analysis
| Porter’s force | Strength | Justification |
| Competitive rivalry | High | Increasing proportion of competitiveness can be notified with the existence of different cloth manufacturers in Thailand |
| Bargaining power of suppliers | Low | With increasing availability of imports and exports, the bargaining power of suppliers has been low for the Thai cloth manufacturing industry (fibre2fashion, 2021) |
| Bargaining power of buyers | High | Due to the implementation of consumer centricity from the Thai cloth manufacturers, the bargaining power of buyers has been high |
| Threat of new entrants | Low | Due to having the requirements of complying with quality and sustainability standards, the threat of new entrants for the cloth manufacturing sector of Thailand has been low |
| Threat of substitute | High | Existing increasing competition in the Thailand cloth manufacturing sector has made the threat of substitute products high |
Table 2: Porter’s five-force analysis
| Identification of the industry in question | The Thailand cloth-manufacturing sector has been employing around eight hundred thousand to 1 million employees whereas the textile industry has been employing around 200 thousand people. Heavy dependency on the imports of cotton, fabric and yarn has been considered as the major disadvantage for producing textiles and garments in Thailand. During 2014, Thailand exported around USD 7.52 billion of textiles and garments (fibre2fashion, 2021). due to the lack of domestic purchasing power and weak domestic demand, the Thailand cloth manufacturing sector has to depend on the foreign markets for selling their textile and apparel products. This attribute has been weakening the position of Thailand in the scarcity of raw materials. |
| Industry stage in the life cycle | The Thailand cloth manufacturing industry has been in the maturity stage of life cycle. |
| Implications | Rising consequences for exports and imports of the Thai cloth-manufacturing sector has been resulting in increasing foreign market dependency. Despite operating throughout the years, inadequate domestic purchasing power has been forcing the Thailand cloth-manufacturing sector to rely on exports and imports. |
| Issue | Survival factor | Success factor |
| Sustainability and digital wave | Sustainable waste management and recycling practices are required to be implemented by the Thailand cloth manufacturing industry. Moreover, digitized operations might increase the cloth manufacturer’s productivity in Thailand. Governmental interventions can also be notified regarding the conceptualization of modern technologies in order to boost innovation in the textile industry (fibre2fashion, 2021). | Increasing consumer base can be reflected with digitized operations and expanding the reach of Thailand cloth manufacturers two different social media channels and digital platforms along with sustainable operations on behalf of the Thailand cloth manufacturing sector. This attribute can drive the Thailand cloth manufacturers to experience increasing production under the shape of advanced technologies for printing, finishing, knitting, and dyeing (fibre2fashion, 2021). |
| Lack of domestic demand | The domestic purchasing power of the Thai consumers is likely to be increased by considering comparatively low pricing strategy from the cloth manufacturers. | Increasing consumer attraction might take place because of low pricing strategy from the Thailand cloth manufacturers. |
References
fibre2fashion.com, 2021. Thailand’s booming textile and apparel industry Available at: https://www.fibre2fashion.com/industry-article/7680/thailands-booming-textile-and-apparel-industry [Accessed 1 April 2021]
ilo.org, 2021. Thailand – 2014 Available at: https://www.ilo.org/dyn/legosh/en/f?p=14100:1100:0::NO::P1100_ISO_CODE3,P1100_SUBCODE_CODE,P1100_YEAR:THA,,2014 [April 1 2021]
O’Neill, A., 2021. Thailand: Inflation rate from 2005 to 2025 Available at: https://www.statista.com/statistics/332274/inflation-rate-in-thailand/ [Accessed 1 April 2021]
textile-future.com, 2019. Thailand emerging as a new textile and garment hub Available at: https://textile-future.com/archives/23596 [Accessed 1 April 2021]
tradingeconomics.com, 2021. Thailand Corporate Tax Rate Available at: https://tradingeconomics.com/thailand/corporate-tax-rate#:~:text=Corporate%20Tax%20Rate%20in%20Thailand%20is%20expected%20to%20reach%2020.00,according%20to%20our%20econometric%20models. [Accessed 1 April 2021]
Know more about UniqueSubmission’s other writing services:
