CPA case study Essay

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Case Study 1 = Dakz Performance Sports Apparel Module 2: Understanding the external environment (External Environment – everything external to the organisation including but not limited to: Industries, Markets, Political Forces, Regulations, Environmental Issues, Society, Technology and a variety of other factors) Q1 – Define Industry and advise about Dakz performance spots apparel Industry Definition (The grouping of similar economic or commercial activities that produce goods or services) Page 2.5 Dakz Performance sports apparel is into global athletic apparel and footwear industry. Dakz started making compression apparel for triathletes, before quickly diversifying into small production runs of cycling and runin clothes …show more content…

There is little expertise required to enter into athletic apparel but require highly specialized knowledge for category of compression apparel. Dakz has started business from very small that attract new entrants as well. Buyer Power is high :- Buyer have alternative channels for products and have many brands to choose are easily able to compare price due to the availability of information on internet and in supermarkets. Substitute power is low : - Dakz is making compression apparel for triathletes and other athletic apparel for athletes and active Australians. Usually athletes do not other clothes as substitutes other than athletic apparel so we can easily say substitute power is low. Supplier power is low :- Due to availability of other international brands in market, supplier power is low. Daks has 40% of market share in Australian and can be easily influence suppliers for not increasing raw material price. Industry Rivalry is high:- Due to continuously increase in demand since 2008, Industry rivalry is high. Price competitiveness drive rivalry. Availability of other international brands, no such barriers on new entrants ad continuous growth in demand of athletic goods pushes price competitiveness. So we can easily say that industry rivalry is high. Summary – Overall we can say demand of athletic goods will increase but if Dakz want to

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