• Provide an analysis of the business environment of the firm. You should consider the main competitors and their competitive position; market details (value; share etc.); current trends in the market; future trends in the market (Attractiveness of the industry).
• Provide an internal analysis of the firm giving details of its current strategic position and tactics. You should also consider the resources and capabilities of the firm and how they impact upon the success or otherwise of the firm (Distinctiveness of the firm).?
The textile industry is focused on the production of yarn, clothing and the distribution of these products to the industry retailers. The raw materials include natural or synthetic products provided b y the chemical industry. In the Victorian period the textile industry was at the centre of expansion of United Kingdom (Baluchamy 2012). The technological advancement helped in production of cotton and wools, dyestuffs and silks at the unprecedented rates, which results in export of the textile goods throughout the empire. The advertisement from 1880 viewed the array of fabrics, which were available for clothing. From the recent reports, the manufacturing textile and clothing industry in UK is commercially viable and supporting the UK textile manufacturing with the huge potential for the industry. The manufacturing in textile industry is not much expensive, in this industry the mid-priced to the expensive fashion items can be profitable to manufacture in United Kingdom (Choi 2012). However there are some issues related to the labor factors, but the supply chain factors can offset these issues.
Within UK textile industry, the Lancashire Textile Ltd. is one of the important textile companies which are situated in Burnley. The company is situated in the historical textile manufacturing town in Lancashire. The company has more than hundred years of experience in the textile industry and the reports specify the superior quality goods by the company. The company supplies superior quality textile products which include mattress toppers, cushions, bed linen, home accessories, duvets, pillows etc. In this assignment, the inter analysis of the company and the external analysis of the textile industry of UK textile industry would be discussed.
With the rapid change in international trade agreements the textile industry is also changing its trends and customer values. Clothing and textile industry is a chief part of world trade. The textile industry updates the latest trends on the basis of the customer’s demand and by fulfilling their requirements.
Technology improvement- The advanced technology is supporting the growth of the industry. The technology innovation provides ways for producing longer fibers from used textiles. The technology innovation like 3D knitting, weaving is leading to economically viable textile production in UK with increased responsiveness (Black 2012).
Customer preference- The UK textile industry’s one of the most important trend is customer preference. Industry players are more concerned with their customer’s ‘fast fashion’ or rapid change in fashion demand. The new flexible technology like knitting and CAD allows the production to take place in joint facility. It involves customers in designing clothes, thereby fulfilling their requirements (Damianov and Germanova-Krasteva 2013).
Environment control- Advanced technologies has also contributed to the environmental benefits. With advanced technologies and research, UK textile industry has been using equipments which are not incorporating harsh effect to the environment. The involvement of UK in negotiation of international agreements on trade is used for promoting environmental responsibility.
Working condition- With the continuous innovation of technology, the working conditions has also been improved in UK textile industry. It has decreased the labor intensity and helped in rapid delivery. The automated equipments used in the textile industry has been made the working condition flexible for the workers (Gleba and Mannering 2012).
The key drivers of a business are the resources and procedures, which are essential for the continuous growth, success and sustainability of a business. An organization should identify the key drivers for undertaking attempts for maximizing these conditions, thus extending the profitability and success of the organization. The key drivers of an industry influence and affect significantly to each organization in the industry. Therefore, it is important to analyze the ley drivers of UK textile industry in this context.
Globalization- The global scenario of the UK textile industry is becoming potential for high profit and innovative products. With the globalization, working condition is improving under international pressure. It is the key driver of economic growth of the industry. The UK textile industry is growing rapidly. The industry has their manufacturing units in India and China, where they are able to produce goods at low rate and the outsourcing is being profitable to the corporate units monetarily.
Employment Opportunity- The reports in last year suggested 5000 jobs, which would be able to add 15000 more by 2020 with opportunities in traditional areas like knitting, spinning, weaving. UK industry is establishing their manufacturing units in the developing countries like China, India, where millions of job opportunities are getting available.
Supply chain- With emerging demands of customers in short time, manufacturers are more concern with longer and complex supply chains. The retailers in industry investing in direct manufacturing supply capability with few suppliers (Hines and Bruce 2012). The supply chain is a key driver, as the rapidly changing environment of the organization is being changed, real product innovation based on new fibers are focusing more on fragmentation of retail structure to supply specialist products and service
Government and Regulation- The sustainable development of the industry is related to government influence. International government bodies are influencing the growth of the sector. The eco-friendly fiber, import and export of clothing and fashion substances related legislations and regulations as well as health and safety acts are providing the guidance to the textile industry members to run their business sustainably.
Threat of new entrants- It is low for the UK textile industry as the cost of maintaining sustainable business is high enough with use of technology advancement
Suppliers- Bargaining power of supplier is weak here, as the industry contains a large number of suppliers, as a result the power is low
Buyers- The bargaining power of customers are high enough, as with the rapid changing customer’s demand, textile industry players attempt to address the demand and attempt to satisfy them.
Substitutes- The threat of substitute products are moderate, as a number of eco-friendly options are emerging, but people are not familiar with those options (Purushothama 2013).
Rivalry- The internal competition is low as this industry needs huge investment, but external rivalry level is high from the developing countries including Bangladesh, India.
The use of new industrial robotics reduced expensive labor cost, thereby making the industry attractive.
Use of automatic made-to-measure clothes are economically attractive and facilitates technologies
Recycling of manufacturing fibers reducing the energy production
Customer-focused production also attracts them
Rapid globalization and increased employment opportunities (Shishoo 2012)
The core competence is achieved by the company during achievements of skills, activities, resources in asset for delivering value and differentiation in the business from the competitors and development.
Customer Value- The Company gives value to their customer’s requirements with technology advancement. The customer’s perception and demands are being prioritized, according to which the manufacturing and production is being influenced.
Competitor differentiation- The Company provides innovative products, which are unique in nature. The products are differentiated from the competitors by using eco-friendly raw materials with 3D knitting technology including (Zhang and Jin 2012).
Extendable- As the customer’s buying trends are fastly changing, the company is extending their products base with research and development. With more customer-friendly products innovations, the range of clothing and other staffs are being included in organizational product range.
Resources- With the rapid technology advancement, demand for human resource has been reduced in the industry, as the company adapts automated manufacturing machines. The research and development departments are using advanced techniques transforming the innovative ideas to create eco-friendly fibers with art machineries (The Huffington Post UK 2016).
Value chain- With both inbound and outbound logistics activities the manufacturing and inventory activities are going in right direction, therefore they are delivering products in right time at right place. The products quality is carefully checked after manufacturing and storing.
|
Core competence |
V (Valuable) |
R (Rare) |
I (costly to initiate) |
N (Non-sustainability) |
Competitive Advantage |
|
Customer Value |
Yes (helping profit expansion by giving preferences to customer’s specific requirements) |
Yes (Valuing customer’s choice in each sector of their production and sales is not done all others company) |
Yes (involvement of new requirement in existing product features would need huge cost) |
Yes (These new requirements are sometimes costly, so it is difficult to maintain these in business all the time) |
Yes |
|
Competitor differentiation |
Yes (Add value to the customer service) |
No (Companies attempt to differentiate their product range to compete with their competitors) |
Yes (To develop differentiated products, huge cost is needed) |
No (Product differentiation based on competitor can be sustainable as it enhances brand value) |
Yes |
|
Extendable |
Yes (Extended research would help to develop more customer focused products) |
No (Most of the companies has Research and development team, making innovative and extended range of products) |
Yes (for having strong research and development the company have to invest a lot) |
Yes (Sustainability cannot be achieved through other departments than research and development) |
Yes |
|
Value chain |
Yes (The logistic activities and inventory manufacturing activities are valuable) |
No (Most of the companies are operating their unique value chains) |
Yes (For highly innovative logistics and huge cost is required) |
No (It can be sustained with appropriate regulation and reviewing process) |
Yes |
The company is known to create timeless classics on enduring appeal. They are gaining competitive advantages by using nanotechnology with innovative techniques for producing fine fibers for their unique products. The company has no delivery issues; they are giving enough effort to provide right service to the right customers at right time. High quality products, international business and innovative products are differentiating the company’s products, thereby providing competitive advantage (Lancashiretextiles.co.uk 2016).
Strong brand image, strong research and development, involvement of innovative technologies and unique quality with appropriate supply chain management is making the brand distinct from others. The company is providing versatile products also (Lancashiretextilesltd.com 2016).
After analyzing the selected industry in UK it is revealed that, textile industry has been achieved huge success and profit. The textile industry is one of the most important industries in terms of export and import. The analysis of UK textile industry revealed that, advancement of technology has been playing a major role in its huge success. The analysis of UK customer trends revealed that consumers are rapidly changing their purchase requirements and the industry has to compete with the new demands of the customers. However the innovative technologies and high amount of research and development made the industry competent to fulfill all the requirements of the customers. The industry analysis revealed that the customer-based production with the help of innovative techniques is helping the firms to make more profit. On the other hand, the Lancashire textile Ltd. revealed is providing unique and attractive products to the customers with best quality. The company is providing versatile products to the customers. It can be concluded that, with innovative technologies and well-management within the organization, the textile company can be competent to be profitable by meeting all the requirements of customers.
Baluchamy, S., 2012. Women in textile industry. New Delhi: Mittal Publications.
Black, S., 2012. Knitting. London: V & A Pub.
Choi, T., 2012. Fashion supply chain management. Hershey, PA: Business Science Reference.
Damianov, G. and Germanova-Krasteva, D., 2013. Textile processes. [New York, N.Y.] (222 East 46th Street, New York, NY 10017): Momentum Press.
Gleba, M. and Mannering, U.,2012. Textiles and textile production in Europe from prehistory to AD 400.
Hines, T. and Bruce, M., 2012. Fashion Marketing. Hoboken: Taylor and Francis.
Lancashiretextiles.co.uk, 2016. Lancashire Textiles. [online] Available at: <https://www.lancashiretextiles.co.uk/> [Accessed 15 Jan. 2016].
Lancashiretextilesltd.com, 2016. Our Services – Lancashire Textile Ltd.. [online] Available at: <https://lancashiretextilesltd.com/services.htm> [Accessed 15 Jan. 2016].
Purushothama, B. 2013. Training and development of technical staff in the textile industry.
Shishoo, R., 2012. The global textile and clothing industry. Oxford: Woodhead Pub.
The Huffington Post UK, 2016. 10 Facts About The UK Fashion And Textiles Industry You Didn’t Know. [online] Available at: <https://www.huffingtonpost.co.uk/2014/08/14/10-facts-about-the-uk-fashion-and-textiles-industry-you-didn-t-know_n_7333834.html> [Accessed 15 Jan. 2016].
Zhang, H. and Jin, D., 2012. Applied mechanics, materials, industry and manufacturing engineering. Durnten-Zurich, Switzerland: Trans Tech Publications.
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