SG7001 Managing Strategy & Operations and Partnerships Assignment Sample 2024
Activity 2: An evaluation of opportunities and threats posed by megatrends
| Megatrend | Key issues affecting the organization | Impact and Implication |
| 3CS- cost, competitiveness and closeness | Cost plays an important role in this clothing and manufacturing company named Atelier Chiang Mai. 3CS is very beneficial to manage the cost and competitive advantages of this company in a positive manner. | ➢ It has been analyzed that 3CS has helped the company to decrease the combined share of global textile and apparel industry in high destination countries such as Germany, Belgium, Turkey, japan from 48% to 22% in the year 2019 (Chiang-mai-clothing.com, 2021).
➢ On the contrary, it has helped to increase the apparel and textile share in low-cost destination countries such as Malaysia from 26% to 49% in the year 2019 (Husu, 2020).
|
| Fourth industrial revolution | Industry 4.0 is considered as very beneficial as it helps in technology innovation to financial development significantly. This textile and apparel company has followed this effective megatrend in order to improve business (Buecher et al. 2017). | ➢ Every fashion industry including this company named Atelier Chiang Mai wants to improve production levels and this industrial revolution has helped to enhance production by implementing various innovative technologies.
➢ Technology is considered a major key driver in the textile and fashion industry and the fourth industrial revolution has helped to improve the efficiency of this business by changing manual to automation through implementing robotics technology, nanotechnology, artificial intelligence, and others. Moreover, it has helped to reduce the wastes of supply chain resources of this company in a positive manner (Bräuning et al. 2020). |
| Sustainability for future growth | This company always believes in sustainability and due to this reason, Atelier Chiang Mai follows an RE strategy that includes REcycle, REsale, REuse, and REntals. | ➢ This strategy has helped the company to reuse polyester materials through chemical treatment as well as helped to reproduce various types of other clothing materials easily with low prices (Chiang-mai-clothing.com, 2021).
➢ It has assisted the company to reuse textile products and the lifecycle of textile features has been increased by this in an effective manner. ➢ The company has resold 15% of discarded clothing by implementing this megatrend (Niemi, 2018). |
| Social media marketing | Social media marketing is considered a very common megatrend in the textile and apparel industry, which has been followed by this company for a better reputation. | ➢ It has helped to understand the market trends and demands of customers very easily. It has been analyzed that sales of this company have been increased by 12% by following this megatrend (Chiang-mai-clothing.com, 2021). |
References
Bräuning, M., Göbel, D., Morgenstern, H., Rieger, M., Schäfer, N. and Scheible, T., 2020. IT security of electronic communication systems in smart textile products. Available at: https://ub01.uni-tuebingen.de/xmlui/bitstream/handle/10900/100438/Abstract%20SEKT%20Scientific%20presentation%20v2.pdf?sequence=1&isAllowed=y
Buecher, D., Kemper, M., Schmenk, B., Gloy, Y.S. and Gries, T., 2017, October. Process analysis of an in store production of knitted clothing. In IOP Conference Series: Materials Science and Engineering (Vol. 254, No. 20, p. 202001). IOP Publishing. Available at: https://iopscience.iop.org/article/10.1088/1757-899X/254/20/202001/pdf
Husu, F., 2020. Consumer perceptions of the environmental sustainability of the clothing industry and textile fibres. Available at: https://jyx.jyu.fi/bitstream/handle/123456789/72350/URN%3ANBN%3Afi%3Ajyu-202010276399.pdf?sequence=1
Niemi, T.M., 2018. Influence of megatrends on cardboard packaging industry in Finland. Available at: https://lutpub.lut.fi/bitstream/handle/10024/158825/Master’s_thesis_Tiina-Maria_Niemi.pdf?sequence=1
Website
Chiang-mai-clothing.com, 2021. Your Clothing Production Partner in Thailand. Available at: https://chiang-mai-clothing.com/. [Accessed on: 01.06.2021]
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