SG7001 Managing Strategy & Operations and Partnerships Assignment Sample 2024
Critical analysis of the industry environment
| Environmental factor | Issues | Implications |
| Economic factor-
∞ The GDP growth of Thailand is 8%. ∞ Employment rate of the nation is regarded as the 31.2% in 2020 according to World Bank. |
There are two key issues are identified and they are the high price issues and new old-fashioned cloths (Williams, 2017). The price factor is the highest factor that the company should mitigate soon. The high-end brand is not affordable for the customers and the new customers especially the college and the school goers cannot afford the range always, therefore the high-end value issue must get resolved soon.
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As per the GDP rate and the economic growth of the country, fashion industry is doing well. However, there is some of the factor to affect the country (Nurmala et al. 2017). Though Thailand is good in their automobile, steel and electronics, however the fashion industry is also earning a good record now a day. Therefore, the economic ambience of the nation is good even after the pandemic breakout. So they can manages their business and for attain the highest growth in their businesses it is extremely important to use the business policy and encouraging the new ideas for attain the sustainable success. |
| Political factor-
∞ It is known that Thailand is the constitutional monarchy that means the authoritative or the kingdom based administration. ∞ They have ruled under the National Assembly or the Council of Ministers. |
The next issue that is found is the old fashioned material that does not go with the trendy fashion (Bruijl, 2018). This is also must resolved soon to attain the benefit from the market. | As per the political factor suggests it is oblivious that the political ambience from the nation is helping fashion industry to make the maximum benefit. The political democracy and liberals natured administration is helping the industry to earn more. Therefore the political scenario of the country is democratic. Therefore, the political situation is balanced. Therefore, it is good to do a fashion business in this country as the nation’s administration is flexible and acceptable with new things. |
| Porter’s force | Strength | Justification | ||
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Competitive rivalry
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Low |
As per the study suggest competitive rivalry is low for the company as they have only high end value product so the market rivalry is low for the company (Islam and Mamun, 2017). | ||
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Suppliers power
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Medium |
As the company is staring their new eco-friendly product so the raw materials suppliers are less in the market. As the concept is eco-friendly materials so there may be lack of raw materials and the suppliers. |
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Buyer power
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Medium |
As per their high price and poor quality issues the buyer power is medium, because not all the buyers’ can manage the work. |
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Threat of substitution
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High |
The threat for the substitution is high, as they have the poor quality product and high price issues on each products so there is many substitute for the buyers (AKMAN, 2020). |
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Threat of new entry
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High |
The threat for the new entry is extremely high for the company. As they have the high price issues and poor quality product issue so there is a chance of new entry with low and affordable range of products with good quality. |
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| Identification of the industry | This study focuses on the identification of the fashion industry. The industry is focusing on the new brand entry, and they are trying to manage their business and they are trying to engage the linen and bio-divertible object with affordable range. |
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Industry stage in the cycle |
The industry is managing to entry a new age products that helps the company to manage the business and add value to the products. The product is eco-friendly. The eco friendly product is come in the market that is made from the market and then it goes to the customer form uses. Customers are giving feedback as per the products suggest. |
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Implications |
Maintaining the quality of the cloth, set a fair price value for the products, set the goal as per the market suggests, read the customer and the constant changes that is coming towards therm. Add a value based products that helps to engage mire natural sources of product for the business. Make the range of the products very basic so that everyone can avail the range. |
| Issues | Survival factor | Success factor | |
| High end value for the products | With a issue them company may face the issues regarding the new entry in the market. As they have the high price issues so it may be case of a new entry in the market. | They may welcome a new brand for the company and that is eco-friendly. Swop they may reduce the price issue form the company and can get success. | |
| Poor quality | This issue is also a factor of the company and it may create the survival issue for the company. | They may encourage some of the rich quality fabric and materials that encourage the customers. | |
Reference list
AKMAN, M.K., 2020. DEFENCE MANAGEMENT AND PESTLE ANALYSIS. ANTE PORTAS, p.93.
Bruijl, G.H.T., 2018. The relevance of Porter’s five forces in today’s innovative and changing business environment. Available at SSRN 3192207.
Islam, F.R. and Mamun, K.A., 2017. Possibilities and challenges of implementing renewable energy in the light of PESTLE & SWOT analyses for island countries. In Smart Energy Grid Design for Island Countries (pp. 1-19). Springer, Cham.
Nurmala, N., de Vries, J. and de Leeuw, S., 2018. Cross-sector humanitarian–business partnerships in managing humanitarian logistics: an empirical verification. International Journal of Production Research, 56(21), pp.6842-6858.
Williams, P.D., 2017. Global and regional peacekeepers: Trends, opportunities, risks and a way ahead. Global Policy, 8(1), pp.124-129.
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