Assalamualaikum.
Hi. Thank you
and welcome to our Marketing Plan blog. I will cover our company Situation
Analysis. Situation analysis consists of three parts; Industry analysis,
Competitor analysis, and Customer analysis. I am using Porter's Five Forces to
do my analysis. Here is the first part which is Industry analysis.
The threat of new entrants examines a measure of difficulty for a company to join the industry. The higher the barriers the company should face to join the industry, the smaller the threat to an existing company. Barriers to entry for new entrants are access to distribution channels, capital requirement, and economies of scale.
The threat of new entrants in the clothing industry can be considered as low. This can be proved by many clothing companies that have been established, especially the production of scarves in the past 5 years. In addition, new entrant does not need a large capital to enter the clothing industry, especially the production of scarves. In addition, the economics of scale can be reduced as we know that in producing scarf, the process does not involve a lot of machinery used. In this era when everything can be reached at our fingertips, the access to distribution channels become much easier and diverse.
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