Citi Trends External and Internal Environmental Analysis

Therefore this industry is a pretty good one to already be in, but would be very tough to try and break into. Since established firms do not have to worry about threat of entrants or substitution, they can focus on making their core business practices cost efficient and profitable. Although firms have to deal with high buyer and supplier power, every firm has to deal with these issues. Therefore this leaves only rivalry to compete on, which forces firms to stay sharp, observe the competition, and provide excellent service to the firm’s customers to generate profit.

First research objective was to determine whether it is profitable for J.Crew to shift their brand focus to a ‘sustainablity’ business model instead of resuming their position in the fast fashion industry.

This papers purpose is to teach fashion heavy consumers on the real price of fast fashion and how buying it affects the environment. This type of audience can be anyone who partakes in the buying of well-known cheap retail stores that have a large audience of being fast and obtainable. These consumers should have the information on how fast fashion effects are environment so it could possibly alter their buying habits to be eco-friendlier but buying either less or more sustainable clothing instead of the cheap alternatives. This audience should care about this purpose because this will affect the world now and for future generations as their environment is being mistreated because of these fast

Central idea: Our environment is being destroyed by the fashions business models and several organizations are revolting against this.

Draw upon market data which is available, to support your conclusions on “Market Structure” with in this industry sector.

Of the hundreds of named brand clothing that form part of the retail and fashion industry I chose to compare, for my analysis, Abercrombie & Fitch, Forever 21, American Eagle, and H&M. These stores are prominent, well-known for selling apparel, shoes, and accessories by the means of offering sales and promotions to their customers. This is a clever strategy for attracting customers, allowing them to believe that they bought goods at affordable, convenient prices – and not to mention the prestigious name prescribed to the clothing brands. Using keyhole.co as my main source, I obtained relevant and valuable information regarding the status of these brands. My intentions were to compare a period of 14 days, however, due to the limited access that I received from my free trial, the program only allowed me to see fewer of the dates than I anticipated. I want to take this opportunity and mention ahead of time that due to the various and distinctive products that are sold from these stores, when looking for the “spending capacity” I decided to focus on shirts/ jeans for men and women and compare the prices among them since each of these retailers carry those items and as a way to make this report easier to contrast and comprehend. Also, when approaching the section of “setting”, I screen-shotted some of the images on Instagram and made them into a collage to separate the type of clothes and trends that each of these brands sell currently. In the following modules

within the industry. The trends relate to what products are available, who and how they are

The U.S. women’s apparel industry market is mature, given that the average growth rate from 2005 to 2007 was 4.66%. Within the industry, there are 6 categories of clothing in which companies compete: haute couture, designer, bridge, better, moderate, and budget. Each category targets customers with different needs and different price ranges, with haute coutre and designer clothing ranging upwards from $10,000 and moderate

However, there are numerous economies of scale. Large retailers own most of the market share and power this industry. As mentioned previously the 50 largest companies own 65% of the market share. The main reasons for this is that there are several economies of scale and absolute cost advantages for the larger firms. This is one of the reasons there have been numerous mergers and acquisitions in the past two decades, which have formed large conglomerates.

Apart from marketing strategies Nike has embellished on the expanding market of technology. In efforts to collaborate with issues of climate change in business the challenges and opportunities that growing organizations seek, Nike has designed a tool to advert such issues. They released a version of their Environmental Apparel Design Tool back in December 2010 in hopes that companies would use it and build from it. In efforts to stay competitive within their market and sustain leadership of sports apparels, Nike has given designers this tool to gather

2. Richard M. Johns (2006). The Apparel Industry. 2nd ed. UK, London: Blackwell Publishing Ltd.. 1-124.

There are a large amount of social and environmental problems within the global apparel industry.

The internal environment analysis focuses on current marketing strategy and performance, present and anticipated organizational resources, current and projected cultural and structural issues, and the customer environment. On the other hand, the external environment addressed competition, economic growth and stability, political trends, Legal and Regulatory Issues, technological advancements, sociocultural trends, and the SWOT analysis.

People are taking more and more consideration on environmental stuff. H&M has done quite well in sustainable improvements. (Activities about this are shown in the appendix.)

Hennes and Mauritz (H&M) is a fast-fashion global leader in the fashion industry. Hence, to have a holistic sustainable development point of view, we will examine and address the Marco-environment by looking at PESTEL analysis framework. The competitive forces within the fashion industry will also be revealed throughout the Porter Five Forces Model.