Management Business Project ReportExecutive SummaryBonjour is a company that is seeking to plunge in to the Australian clothing industry and at the same time contemplating on the use of a Chinese supplier. There is need to assess the nature of the Australian clothing industry. This further illustrates on the buyer’s demands. A number of aspects need to be ascertained with reference to the nature of the market. Competition is an aspect that can not be avoided. The company needs to plan effectively towards the effect of competition. Competition should not be perceived as a set back to the marketability of products.
It is through competition that quality production can be fostered. The five forces model of competition if critically evaluated are a vital tool for a new company. By critically evaluating the five forces, it becomes possible for the company to earn a competitive advantage over its rivals. Rivals will always be in any business set up. The company can identity strategies to help it earn a competitive advantage over its rivals or alternatively plan towards barring the entry of more rivals.
Such measures can include the reduction of prices. This is thought to be strategy that can effectively attract more customers and at the same time discourage other players from entering in to the same industry. With the plan to use a Chinese supplier in mind, the bonjour company will be strategically situated in the market. This will not only help in the rapid domination of the market but also save the company from the agony of getting to the target customers. The use of such a supplier is an ideal channel of distribution as the use of many intermediaries is bound to negatively affect the pricing of the commodities.
This is because many of the intermediaries in a foreign market are bound to fix their own prices different from the original selling price. Such an aspect may enable substitutes to bit the brand being traded on the market. Analyzing the cultural aspects of the country of operation is equally vital as cited by the Hofstede’s frame work. IntroductionThe clothing industry in Australia forms the back bone of the Australian economy.
For a new company in to the Australian clothing industry, competition is a key factor to examine. The porter’s five forces model of competition is a vital tool in assessing the impact of competition. This paper examines the five forces model with regard to the Australian clothing industry. This is in line with the implicated cultural diversities in Australia. This information is to serve as an assessment of the competition and cultural diversity for the Bonjour clothing company. This is a company that is seeking to plunge in to the Australian clothing industry for the very first time. The Porter’s Five Forces Model of CompetitionThis is a frame work that analyses the economical impact of the nature of competition in a business set-up.
The five forces implicated in this model illustrate the intensity of the competition in a market. These forces basically revolve around the profitability of the business investment and the fact that the competition intensity is not a chance aspect. This implies that the implicated magnitude of competition in any business is not related to good or bad luck.
The influence of these forces on any industry is very instrumental. The figure below depicts an illustration of the five forces (Daniel 2004).