This industry heavily relies on the retail and service oriented business industry. Striving for maximum lease occupancy and carefully selecting companies that already possess consumer brand loyalty can overcome these obstacles. However, there are minimal barriers to entry (excluding required capital) and virtually no economies of scale or brand loyalty issues to contend with. The primary cause of this low entry threat is due to the current economy difficulty in obtaining capital, retail and service industry bankruptcies combined with slow sales, little to no commercial construction, and strong rivalry among existing industry competitors. While the threat of new entrants is currently relatively weak, an economic upturn will inevitably change this position. plenty of choice - and lots of competitors make it hard to sustain a place in the market.**Note this is page two of the analysis, read page one of this Real Estate Industry Analysis Example which includes the beginning section of the review of Porter's 5 Forces. Buyers have large amounts of indirect power to bargain with - i.e. This Five Forces analysis has shown that while there are few threats and little supplier bargaining power, it is not good that the market is effectively nearing saturation. To sum up, the fashion industry seems difficult to successfully dive into, and bleak for companies already within this space. This force is almost negligible - all РІР‚ВsubstitutionРІР‚в„ў in the fashion industry is really just competition. The fashion industry in its current state is РІР‚Вhigh risk, high rewardРІР‚в„ў for new entrants - itРІР‚в„ўs not too difficult to get a foot in the door and copy others, but will the markets care for those products?Р”Р‡ortunately for those in the fashion retail industry, there is little to substitute clothes with.

However, new entries might find unique ways to popularize their own products (which might not even be particularly special), and as such build novel brands - perhaps through clever use of social media. In this sense, the fashion industry is a very difficult one to get into, and is almost becoming a РІР‚Вrace to the bottomРІР‚в„ў - not good news for retailers!Р”Р„s mentioned previously, there is little that is unique to bring to the table in this industry, so this force is also somewhat small. Nowadays there is little innovation in this space, so the market is quickly becoming saturated with very similar products. There are large numbers of retailers who sell very similar products, but thereРІР‚в„ўs also the concept of brands, which allow some companies to sell apparel for ridiculous rates. The fashion industry is an interesting one when it comes to analyzing through the intensity of competitive rivalry.

As a result, input prices for this industry are relatively low and will stay there until the global development gap closes up significantly. Suppliers have little control over the fashion industry as, unfortunately, they are dispensable and can always be swapped out. Most apparel companies source their products from third world manufacturers who receive just fractions of the profit. In the fashion retail industry, supplier power is a relatively small and insignificant force. While clothes shoppers are typically individuals with little to none direct bargaining power (as compared to huge companies, buying in bulk, who might be the main clients in other industries), they have many alternative locations to shop for apparel and little incentive to stay with one particular company, giving them plenty of indirect bargaining power. In the case of the fashion industry, buyer power is a relatively large force. The first important force is the bargaining ability of buyers, who can choose to push down prices, not buy products, or switch retailers. Porters five forces - courtesy of РІР‚ВGrahams ChildРІР‚в„ў This article will attempt to analyze the viability of the fashion retail industry as a whole, by means of a Five Forces analysis. The fashion retail industry has a market value of several hundred billions of dollars, with the average price per product coming in at a healthy $19. The threat of substitution - the threat posed by the possibility of substituting a product or service in one market with something else The threat of new entries/entrants - the threat posed by new entrants in a market Supplier power - the ability of suppliers to increase the cost of their product or serviceР”В¬ompetitive rivalry - the intensity of competitive activity which might affect how much business a company receives, or how high sustainable margins are We Will Write a Custom Case Study SpecificallyР”В«uyer power - the ability of buyers to decrease the prices they pay

High threat of new entrants example