TJD International Holding Company Performs Analysis on the Apparel Manufacturing Industry
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TJD International Holding Company (TJD) will perform an industry analysis on the apparel manufacturing industry. China is the largest exporter of this $480 billion market and the EU, Japan, and the U.S. are top importers of apparel. These three import nations account for 90% of all imported apparel. Demand is driven by consumer preference and a combination of costs of manufactures in the U.S. and overseas. “The profitability of individual companies depends on efficient operations and the ability to secure contracts with clothing marketers. Small companies can compete effectively with large ones by specializing in a particular type of apparel manufacture.” 1 U.S. imports account for ninety percent of the U.S. market. The largest suppliers…show more content… Small forms can compete effectively with larger firms by specializing in a particular type of apparel manufacture.” 1 U.S. imports account for ninety percent of the U.S. market. The largest suppliers to the U.S. are Bangladesh, China, Indonesia, Mexico, and Vietnam.
International companies do not report their data globally on a macro level, which doesn’t allow competitors to benchmark sustainable progress. Therefore, TJD has identified the top three firms in the market by asset size. According to Bloomberg.com,
Meisheng Cultural & Creative Corp Ltd (China), Nagaileben Co Ltd (Japan), and Virat Industries Ltd (India) are the top apparel manufacturing leaders as it relates to published revenue reports (bloomberg.com). The apparel manufacturing industry includes the production of yarn, and cloth and the subsequent design or manufacture of clothing and their distribution. The raw material may be natural or synthetic using products of the chemical industry. The Industrial processes included cotton manufacturing, synthetic fibers- rayon nylons and polyesters, and Natural fibers- sheep, goat, rabbit, silk-worm flax, Hemp, Jute sisal. The diagram below and Appendix B shows Porter’s Five Competitive Force model for the apparel manufacture industry. Entry barriers exist due to high economies of scale. Large purchases of raw materials for production allow for an average cost reduction of the end product. Thus, smaller producers have more barriers to