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Harrington Case

In: Business and Management

Submitted By anto2nyce
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Industry and Company Evaluation
1) The following is an analysis of the attractiveness of the women’s apparel industry using the Porters Five Forces Model. The model helps identify the strengths and weaknesses of the firm along with the opportunities and threats the firm would face in the industry. It examines the threat of new entrants, supplier power, buyer power, competitive rivalry and threat of substitute products and services.

Threat of New Entrants – Entry into the women’s apparel industry is relatively easy with minimum barriers, restrictions and regulations. Due to competition, players in the industry may be forced to vertically integrate to gain a competitive advantage. Despite this, new comers are able to outsource production thus eliminating overheads and capital spending associated with manufacturing plants. With this ease of entry the attractiveness of the women’s apparel industry for the players involved would diminish with an increase in competition, imitation and decreased market share.

Supplier Power – Supplier power at present seems to be very weak as it relates to Harrington Collection. Harrington have eliminated suppliers having power over them by vertically integrating their operations where they manufacture apparels for themselves. If however Harrington Collection chooses to outsource its manufacturing, their supplier’s power would be dependent on the number of options they have in selecting other manufactures and how exclusive a quality service is supplied. If there are few manufacturers available to undertake Harrington Collections requirement, then the supplier power would be relatively strong. However at present with the vertical integration supplier power is very weak. With the presence of vertical integration in Harrington’s Collections operations, supplying themselves essentially renders suppliers power weak. This

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