MGW3401 – STRATEGIC MANAGEMENT Tenfold™ Organic Textile Case Analysis Report Lecturer: Dr Chong Yit Sean, Esther Tutor: Dr Tan Seow Kian, Sharon Cheok Huei Chun (24826200) Teoh Tong Aik (26094193) Florian Navintach Zeorelli Samerawickreme (24729833) Clement Marsha (25342754) Habiba Almahrooqi (25384589) Table of Contents Executive Summary 1.0 Introduction 1.1 Purpose of the report 1.2 Company information 1.3 Assumption 1.4 Methodology 1.5 Purpose of Report 2.0 Strategic Analysis 2.1 SWOT ANALYSIS 2.1.1 Strengths 2.1.2 Weaknesses 2.1.3 Opportunities 2.1.4 Threats 2.2 Main issues 2.2.1 Issue 1 2.2.2 Issue 2 3.0 Evaluation of Alternative Strategies 3.1 Alternative 1 …show more content…
The second alternative is using the Blue Ocean Strategy to create value innovation by offering different kind of organic apparel to the partner brand. Moreover, blue ocean strategy can help Tenfold to enhance the organization’s strategic position. All in all, the best strategy for Tenfold is the blue ocean strategy since it can decrease the number of its competitors when using this strategy. Introduction Purpose of the report The purpose of the report is to analyze and discuss the main issues that Tenfold organic textile need to improve and provide alternatives to get a superior performance. Assessing the company’s strengths and weaknesses will help Tenfold to have a planned strategy, gain more profit and create a well-known brand. Furthermore, a clear understanding about the opportunities and threats of the organization can help the management to identify the changes and new alternatives that can be made to enhance the organization’s strategic position Company information Tenfold Organic Textiles is a company that manufactures naturally dyed organic cottons which was founded by Leah Weinstein and her brother Paul Weinstein in 2006. Tenfold’s main mission is to provide organic apparel using naturally dyed fibers by reducing the use of the chemicals in textile manufacturing. They believe that fashion industry should not pollute the environment with chemicals and synthetic dyes. In order for the
Primark meets the corporate social responsibility to environment at large. Firstly, Primark establishes a partnership with CottonConnect aiming to improve the farming technique that growing cotton with fewer resources. In this way, the farmers can earn more money for themselves. Secondly, in order to promote a green production
Robert Swan once said “the greatest threat to our planet is the belief that someone else will save it.” Two companies that understand this concept are Patagonia and Nike. How they address these issues regarding sustainable business practice vary, however. Both have made it their mission to deliver excellence and make the best quality products within their industries, Patagonia focussing more on outdoor active wear, while Nike is more sports oriented. Part of this process has been developing products from sustainable sources. Patagonia, for example, actively took a stand against chemical intensive cotton in 1994, and has since switched to less harmful means of organic cotton within all their cotton-based products. They are even going the extra
TenTree has created a product with the positioning to give customers clothing options that are environmentally and socially responsible. They promise to plant ten trees for every item purchased and only use factories that are approved by WRAP. (TenTree, n.d.) They also have a large selection of t-shirts, hoodies, sweaters, tanks, hats, and toques, in a variety of different colours and sizes. (TenTree, n.d.) Satisfying the customer wants for a wide variety of socially and environmentally responsible clothing has created functional-instrumental value for their customers.
Nordstrom has continued to improve their dedication to the environment, steps such as: reducing carbon dioxide released into the air, using organic cottons and investing time and money into the discovery of more sustainable fabric clarification. Although many of these steps may seem like obvious choices so many large companies are still struggling to make the leap nordstrom has shown in these areas. The hunt for more sustainable fabrics is in hopes to lower the unlawfully logged forests and continue to encourage other brands, which they outsource from to be aware of how and where their fabric materials are made. The ethical decision to improve their own environmental practices and inspire other brands to do the same shows they care about the recent changes in society and are willing to form to these
In the book, Overdressed: The Shockingly High Cost of Cheap Fashion, Elizabeth Cline, a journalist and the author, writes about the lack of ability of disposal we currently possess for the massive amounts of textile waste. She wrote, “The rate of disposal is not keeping up with the availability of places to put everything that we're getting rid of and that's the problem." Millions of tons of textile waste are generated globally per year. There are many efforts to cut down the amount of waste by recycling, shredding, and exporting to developing nations. According to the United Nations, The US is the leading exporter of second-hand clothes. Very poor nations like India benefit greatly from imported second-hand clothing. These methods to cut back on textile waste are proven to work, but they don’t solve the problem, they just lessen it. Part of the problem with fast fashion and textile waste is that many of the clothes being mass produced are made out of cheap petroleum-based fibers. H&M received a lot of backlash for this, spurring them to release a more eco-friendly line of clothing, using organic cotton.
There will always be that one or two patrons that are looking to save the environment and if the company can look to incorporate environmentally friendly designer clothing and accessories into the business, the business will be leading the future in clothing retail sales. For example, designer blue jeans become a designer purse; a designer silk shirt becomes a new designer pajama top. Reusing material is not a new idea however, creating new items from high-end designer clothing to create environmentally friendlier clothing or recycled designer clothing from the designer is, and if it is made exclusively for Christina’s Unique Clothing Store the company’s future is secured.
Blue ocean strategy, as a business method, is about company creating a new market or industry where there is no competitor. Companies play not by traditional rules, never use the competition as a benchmark. They could ether create greater value for customers at a higher cost or create reasonable value at a lower cost. Thus, the name of the program – find a blue ocean, a new ocean to swim in.
An example of Blue Ocean Strategy business would be “Le Cirque du Soleil.” At some point of our life we did went to see the circus. The circus’ performances were very popular for many centuries. This is an old concept - a group of artists and acrobats who travel the world with a tent, and with a diversity of wild animals to perform a spectacular show. The primary target was the children. Today, this concept is obsolete, although still exist in Europe.
Tassal is working in the market for almost 25 years. They are delivering healthy and frssh salmon for the people of Australia. More than 800 employees work with them and the employees who are working with Tassal share the passion for delicious seafood. The growth curve of the company is impressive. It started operating in the year, 1986 and has been able to make its presence felt
GoodWeave is an organization which Target partnered with that prevented child labor in the manufacturing of their own brand woven rugs. The GoodWeave organization is aiming to stop child labor in the carpet industry and to replicate its market-based approach in other sectors according to their mission statement. Target’s goal is to provide their guests with the assurance that their rugs are responsibly sourced through the GoodWeave organization. Target partnered with the Natural Defense Council on Clean by Design, their mission is to reduce environmental impacts of suppliers abroad. Target saved in water, energy and materials from pilots in Chinese apparel textile mills. When that started happening, the saving of materials and such convinced Target to explore how the reducing can be applied to home textiles in 2015. The last of the goals was EcoSet, 420 tons of waste was created from adverting shoots since 2009 and it’s time to act and save that waste.
Patagonia Case Study “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” Since being founded in 1973 by outdoor enthusiast Yvon Chouinard, Patagonia has gone to great measures to follow their mission statement and build a brand based on quality, trust, sustainable practices, innovation, and loyalty. By becoming a pioneer of using organic cottons in its product lines and using environmentally sustainable processes to make its products, Patagonia has managed to appeal to a certain yet growing consumer base. The consumers are men and women between the ages of 18-40 primarily in North America (West Coast and North East) who are active, outdoor nature lovers, and are supporters of sustainable and environmentally friendly practices. In addition, they are the ones who try to live a healthy lifestyle by eating organic products and attempt to reduce their environmental impact by
The purpose of this essay is to analyse the current competitiveness and marketing strategy of Superdry/Supergroup PLC. Then investigate positive future avenues the company could take to increase growth, market share and sustainability in the retail clothing market. Currently Superdry have seen a huge increase in growth since they were listed on the stock exchange in 2010. Sales have increased by 329%, profit before tax has increased by 173% and amongst other increases they have seen a massive surge in e-commerce net revenue growing exponentially by 1586% (Supergroup, 2016). In a SWOT analysis carried out by Marketline (2016), they highlight how successful the company’s strengths and opportunities are with their multi-channel business, strong financial performance and global penetration all leading them in the right direction. In addition to the continued performance success Superdry have three principle goals set in place. Firstly, they want to build a lifestyle brand, secondly, drive awareness and breadth of the Superdry range, and thirdly, build a broader cross channel relationship with their customers (SuperGroup, 2016). It’s these three goals that will be used to formulate this essays future recommendations for the company, aiming to help keep the business moving in the same direction as it already is, increase its competitive advantage, and build on its solid brand platform by assessing the potential of entering into a new market.
This strategy seem challenging since this strategy focus on capture new market and new demand, which it’s required extra efforts in term of innovation of products and promotion in order to make customers realize about their product. Even there are some discussions about the blue ocean strategies; however, based on my review on customers comment said that the practical guidance on how to create them is limited. Therefore, without usual analytic framework which can be used as guidelines to create blue oceans as well as effective principles to manage risk, creating blue oceans viewed as too risky for managers to pursue as strategy for their company.
There are a large amount of social and environmental problems within the global apparel industry.
There are some tool produce to help implement blue ocean strategy. The Eliminate-Reduce-Raise-Create (ERRC) Grid is the matrix that help execute blue ocean strategy with the four action framework: eliminating, reducing, aising and creating. ERRC Grid help company to remain on their competitive factors. Eliminating and reduce the factor that the transitional industry take it for granted can help the new strategy to remain unique from the transitional market. Nevertheless, raising and creating some unique competitive factor the transitional market never or seldom offered that is above the industry standard. With all these “Four Actions Framework” the company can escape the transitional red ocean market by activate a new blue ocean market and create a new value curve. (Kim & Mauborgne, 2005)