Porter five forces model of textile industry

Here we analyse the sector's dynamics through Porter's five-factor model.

porters five forces summary

Inthe textile industry emphasis on technology upgrading, restructuring and industry consolidation, focus on support and guide the enterprises, focus on research and development, enhance the brand and technology content.

Many domestic textile enterprises are small, scattered, chaotic. Today, science and technology is developing quickly, the techniques in the textile production is becoming increasingly demanding.

Competitive analysis of textile industry

According to certification standards, a huge capital investment established a relatively high barriers to entry for the new entrants. Also, India is rich in traditional workers adept at value-adding tasks, which could give Indian companies significant margin advantage. The middle get meager profits, while the lowest level is mainly about medium and small enterprises. For example, pharmaceutical companies must get product approval before it is available for sale. The textile sector employs nearly 35 m people and is the second highest employer in the country. Microeconomics teaches that the more substitutes a product has, the demand for the product becomes more elastic. The forces that determines the ultimate potential and threats for competitions for an industry are 1.

The two-fold increase in global textile trade is also likely to drive India's exports growth. The fundamental strategy is to promote enterprises to further accelerate industry restructuring, the level of pace.

financial analysis of textile industry in india

Low switching costs to consumers: Switching costs to consumers can come in the form of monetary costs transferring cell phone service: termination and initiation fees or lifestyle switching costs switching from driving a car to public transportation.

According to certification standards, a huge capital investment established a relatively high barriers to entry for the new entrants. Customers are powerful if: Customers are concentrated: If there are only a few customers or one in the market, the customers will have more leverage because of the increased reliance on the income stream.

rivalry in textile industry

This is true not only for food but for many industries where technology is consistently being improved e.

Rated 9/10 based on 90 review
Download
PORTER'S FIVE FORCES IN TEXTILE INDUSTRY by Sheila Brillas on Prezi