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The Sales Industry

Decent Essays

Part 1 1. Hymer 's barriers to entry- Obstacles a firm faces when wanting to set-up production overseas. These obstacles can include existing competition, Capital (having to do with start up operation and production), level of risk, and assimilation. 2. Location factor- low barrier to entry- Certain variables that effect the location of industries such as (but not limited to) cheap labor, regulatory environments, basic machinery (sewing machines), low required investment of capital, and a skilled labor force. 3. Fashion-basic (fast fashion)- Low cost/cheap/basic imitation of deluxe top of the line fashion. The bulk of the sales industry is in this kind of business. Relies upon niche marketing for increase in demand and turn-over (new seasons). Mostly replacement demand-but its more than that people want to look good! 4. Outsource- A company that outsources from another company does so when they conclude another company can produce something more efficiently than if they were to do it themselves. 5. Producer Driven Production Circuit- Producer-driven commodity chains, do not produce final product, often collaborates with other multinational firms. 6. Captive Suppliers within a Production Circuit- Small suppliers transactionally depend on large buyers. Suppliers face high switching cost. 7. "Washington Consensus" Macroeconomic Policies- Control in the interest rates within the federal reserve, aimed to managing spending, goal is to reduce social welfare

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