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Fashion Management - Coggle Diagram

- - - - challenges in different groups
        
        start-ups - should have something new challenges: finding a market, a group of customer, secure finding, adjusting the g&s to market demand. entrepreneurs do everything, Objective: remain&survive
        
        survival - sufficient number of customers. challenge: finance, generating enough cash to break in. an indicator of moving to success stage, demonstrates it is a workable business entity
        
        success - solidly based on profitability, systems & procedures, entrepreneurs can slow down. challenge: make a decision to stay involved/turn over. requires a new skill set
        
        takeoff - challenge: how to grow rapidly and finance the growth and delegate responsibilities
        
        maturity - size - big, issues with bureaucracies and slowing down decision-making, loss of flexibility and entrepreneurial spirit. Challenge: ability to innovate through requires investments in R&D, costly
- - - - corporate level: CEO, board of directors and corporate staff. HEAD OFFICE. what businesses are we in? corporate strategy: diversification, business portfolio. should we acquire other brands that are showing profit potential/enter a foreign market/ divest or withdraw
      - business level: divisional managers and staff. how do we compete? business strategy: leadership, differentiation or focus
      - functional level: functional managers. how do we support business strategies? e.g. marketing, finance, HR, supply chain etc.
    - - arena: where will we be active. vehicle: how will we get there. differentiators: how will we win in the marketplace. staging: what will be our speed and sequence of move
  - - - benefits (functional, emotional, social) / cost (money, time energy, psychic cost)
        
        each one assesses the benefits and costs differently and the weightings vary. some might prioritise functional benefits over social or vice versa
        
        can be created either by increasing benefits or reducing costs. can make the customer prioritise one over another e.g. VS - emotional value
      - buyer's willingness to pay - opportunity cost of suppliers
      - perceived value (7)
        
        functional. focus on the function or physical attributes i.e. reliability, durability, price. e.g. can i tumble dry then? raw materais
        
        price value
        
        social. dependent on peers, opinions, society. e.g. everyone wears it, i want too
        
        emotional. can it arouse feelings? about experiences, how can they differentiate from others? VS - atmosphere, shopping experience
        
        epistemic. relates to curiosity or novelty. critical for early adopters
        
        conditional value. conditioned to buy under a particular circumstance e..g eggs - Easter, jumper - Christmas
        
        utilitarian. concerned with factors such as efficiency, reliability, convenience, affordability, durability, and effectiveness
    - - the set of benefits or values it promises to deliver to customers to satisfy their needs (Kotler & Armstrong, 2016)
      - although dependent on the marketing department, the decision of value proposition should't be solely a functional strategy, but a business one. top managers evaluate their capability of resources and other departments
    - - a company is a chain or primary and support activities for transforming inputs into outputs that customers value (Porter, 1985)
        
        Porter separates the business system into a series of value-adding activities and the goal of these activities is to offer the customers a level of value that exceeds the cost of these activities, thereby resorting a profit margin for the business
        
        value-adding activities. resources: human, financial, raw materials, technological, info. management activities: planning (select goals and ways to attain them), organising (assign responsibility for task accomplishment), leading (use influence to motivate people), controlling (monitor activities and make corrections). performance: attain goals, products, services, efficiency and effectiveness
        
        primary activities: inbound logistics (related to receiving, storing and distributing inputs internally), operations (actual transformation of inputs into outputs), outbound logistics (delivering products to the customers, collections, storage and distribution systems, may be internal/external), marketing sales (persuading customers to buy from you), service (maintaining the value of your products to the customers). secondary activities: firm infrastructure (organisational structure, control systems, quality check, accounting, finance), HRM (recruitment selection, training, maintaining working conditions, relationship with employees unions, Technology Development (machineries, softwares, systems, procedures, tech skills, ICT and R&D departments), Procurement (acquisition of necessary g&s from external vendors, procurement of raw materials, negotiating pricing and product purchase contracts)
        
        presents opportunities for integration, aligns spending with value processes, provides for reconfiguration of the value chain: outsourcing, offshoring, co-location with customers or suppliers, redesign for efficiency
- - - - implications for strategy (4): positioning the company, exploiting industry change, shaping the industry structure, defining the industry
  - - - rivalry among existing competitors. relates to the competitive struggle between companies in the same industry to gain market share from each other. basis of competition: price, functions, support activities (e.g. marketing) etc. intensity of rivalry: number&size of competitors, industry growth, exit barriers
      - threat of new entrants. not currently in the industry, but have the capability to do so. depends on the height of the entry barriers (7): EOS, customers switching costs, capital requirements, brand loyalty, unequal access to distribution channels, restrictive gov. policies, expected retaliations. threat of new entrants puts a cap on the profit potential of the industry
      - threat of substitutes. a substitute performs the same of similar function or fills similar customer need as an industry's product by a different means. -creates price ceiling -often comes from outside the industry
      - supplier's bargaining power. power suppliers can 'squeeze' profitability from the focal firm
      - buyer's bargaining power. buyers can be customers and business-to-business customers. powerful buyers can squeeze profitability our from the focal firm. source of bargaining power (5): concentration (size and number of suppliers&buyers), relative dependence, switching costs, product differentiation, ability to integrate (upstream/downstream)
- - - - market penetration - existing market, existing product. how to further exploit their product range without changing the product itself. by promotional methods (3 for 2, 50% for 3 additional products, in-store merchandising or advertising campaigns to attract more sales (new customers/competitors' customers. E.g. Cambridge Satchel company - increased physical presence, discounts for students, personalisation services, spring sales. Downturn:: potential reduction of profit margin. If the market is saturated - risks of retaliations from competitors, legal constraints (e.g. JD sports and foot asylym acquisition prevention)
      - product development - existing market, new product. newness varies. e.g. H&M - activewear, VS - body care. using market knowledge acquired from EM to widen/diversify. -: expensive, risky, may require new strategic capabilities, unfamiliar production processes or technology, project management risks, capital requirements, +costs of stock & promotion. get exposed to a completely new market
      - market development - existing product, new market. new users, new geographies. e..g, internationalisation, offline --> online. firms identify the potential market so the risk will be moderate and the lack of familiarity. E.g. Ted Baker expanded new markets starting their online platform + wholesale business + license out the use of trademark
      - diversification - new market, new product. diversifying into related and non-related industries. e.g. Inditex, N Brown etc.
        
        rationale of diversification
        
        growth
        
        economies of scope - using capabilities and resources (tangible and intangible) across multiple activities that lead to efficiency. e.g. inditex expertise for Zara reduce lead time can be used for other brands
        
        increase market power - when negotiating with suppliers
        
        superior internal processes. e.g. LVMH diversifies into retailing businesses; duty-free, publishing businesses
        
        responding to market decline
        
        spreading the risk of market contraction
  - - - star: high market share in a growing market. earnings: high, stable growing, cash flow|: neutral, strategy: invest for growth
      - dog: low market share in a mature/declining market, earnings: low, unstable. cash flow: neutral-negative. strategy: divest
      - cow: low market share in a mature market. earnings: high, stable. cash flow: high, stable. strategy: milk.
      - ?: attractive growing market but hasn't yet established competitive advantage in the market. earnings: low, unstable, growing. cash flow: negative. strategy: determine whether business will grow into a star or divest to dog