Essays on External and Internal Influences - Oz Clothing Company Case Study

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The paper 'External and Internal Influences - Oz Clothing Company " is a good example of a marketing case study. The productivity of the company has drastically gone down, and the cost of production has escalated in the recent past. International competition and economic meltdown are adversely affecting Australian manufacturing operations. The economy internationally is not performing well and the company growth is largely affected with low sales being occasioned by dwindling purchasing power among the customers. Oz Clothing manufacturing operations are based in Australia, and the company suffers so much in the absence of a local market (Coghlan, 2011).

Many industries are being affected, and the income of consumers is not getting any better. Internationally, there are companies that are able to produce at low cost and, therefore, offer a huge price cut as compared to Oz Clothing. Low costs of production in order territories of the globe are making it hard for manufacturing companies to compete on the global front. Competition from China firm is driving the company to the periphery to the extent that it cannot make any profits.

Chinese companies are able to produce a high volume of quality products and offer them at affordable prices (Fine, 1998). They use high-skilled labor-intensive industries that are in a position to come up with very quality products. Oz manufacturing uses low skilled labour which cannot produce sophisticated products, which can fetch competitive prices on the global market. Oz manufacturing has to do something about its situation. Producing in Australia seems to be more costly than producing abroad. Shifting its production base offshore seems to be the only viable solution.

The company has to compete effectively with other industries from fast-growing economies like China. Establishing a plant in China seems to be very tricky for the company since there is more financial commitment involved; and presently the company does not have enough capital for expansion.

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Case study Oz Clothing company

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