Jonathan Anderson is enthusiastic about Fashion design, and his beautiful clothing and accessories brand him among the forward-thinking investors. Anderson has developed the Loewe and JW Anderson brands at the center of his amazing career, which renders his business sustainable in contemporary markets. JW Anderson faces stiff competition from Stella McCartney, Christopher Kane, Mulberry, Jil Sander, Proenza Schouler, Joseph, Philip Lim, and COS. A presentation of the Porter Five Forces Model for JW Anderson is monumental in analyzing its sustainability and eco-conscious collection.
- The threat of substitute products
- Buyers’ bargaining power power
- Rivalry from competitors
- Suppliers’ bargaining power
- The threat of new entrants
Rivalry from Competitors: High (Young, 2017; Kumbara, 2020, p. 610)
The intensity of competitive rivalry in the Fashion industry is relatively high. Although most retailers sell similar products, the brand concept underscores the rate at which a company will sell its apparel. JW Anderson faces stiff competition from Stella McCartney, Christopher Kane, Mulberry, Jil Sander, Proenza Schouler, Joseph, Philip Lim, and COS. However, JW Anderson remains competitive through continued innovation, which led to the Loewe brand’s development.
Buyers’ Bargaining Power: High (Noto La Diega, 2020, p. 19)
JW Anderson does not have control over buyers because they can buy from other retailers. Consumers in the fashion design industry have little incentive to remain loyal to one company, posing indirect bargaining power.
Suppliers’ Bargaining Power: High (Talay, Oxborrow, and Brindley, 2018, p.604)
The suppliers’ bargaining power in the fashion industry is significantly high. The major inputs that JW Anderson needs are available in the third world countries at relatively low prices. Therefore, JW Anderson requires low input prices because suppliers have little control over the industry and are easily replaceable.
Threats from New Entrants: Low-Medium (Kumbara, 2020, p. 399)
JW Anderson has a competitive advantage following the low to a medium threat from new entrants. It takes significant efforts to invest in fashion design due to the need for licenses, insurance, design qualifications, distribution channels, and customers’ loyalty. Unlike a new entrant that lacks significant expertise, JW Anderson debuted his collection in 2008 (Brara, 2019). He has built a large base of experience to reduce operational costs and improve service delivery. Moreover, the company already has customers, creating a competitive advantage from the beginning.
Threats from Substitute Products: Low (Moghadasi, 2018, p. 7)
The threat of substitutes is negligible because there are little to no substitutes for apparel. Therefore, JW Anderson is tasked with sustaining competition and winning customers’ loyalty.
Reference List
Kumbara, A., (2020) ‘The analysis of porter’s five forces in lucky textile group in facing the competition of textile industry’, Dinasti International Journal of Economics, Finance & Accounting, 1(3), pp.397-412.
Moghadasi, M. (2018) ‘Strategic analysis: A case study of Harley-Davidson’.Web.
Noto La Diega, G. (2019) ‘Can the law fix the problems of fashion? An empirical study on social norms and power imbalance in the fashion industry’, Journal of Intellectual Property Law & Practice, 14(1), pp.18-24.
Talay, C., Oxborrow, L. and Brindley, C. (2018) ‘How small suppliers deal with the buyer power in asymmetric relationships within the sustainable fashion supply chain’, Journal of Business Research, 117, pp. 604-614.
Young, J. (2017) Harley-Davidson five forces analysis (Porter’s model). Web.