Essay Example on Global Fashion Industry

Introduction

The fashion industry has been changing rapidly over the years where international brands have been shaping the international fashion trends. The case study focuses on the transformations faced by fashion-forward Dubai in the fashion industry and how technology has transformed the fashion industry. The management of the fashion-forward company has been forced to make management decisions that correspond to the changes that have occurred in the fashion industry globally. The managers have used their management skills to ensure that the company is able to remain competitive in an industry that is ever-changing with the entrance of new companies in the market.

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Fashion Company

The management of the fashion company is key for the success of the company because the managers make a key decision that affects the companies. The managers of the fashion-forward Dubai gives fashion companies in Dubai to showcase their new fashion trends and thus showcasing their fashion trends to the world (Beraja, 2019). The trends that have influenced the global fashion industry includes technological trends where consumers are more informed on the fashion trends globally. Fashion-forward Dubai gives fashion companies the opportunity to share and exchange ideas on the new fashion trends. For instance, the internet and social media have enabled the sharing of information where people discuss new global fashion trends.

The principles of management embraced by the managers of the fashion-forward Dubai according to the case study include collective interest where the interests of all the employees working for the company focus on offering the best services to the company (Lantz, 2016). The principle has enabled the Dubai fashion company to produce good quality clothes that are able to compete with other international fashion brands (Beraja, 2019). The principle makes the manager convince the workers to be committed to serving the company to ensure that the clothes that the company produces are of high quality. The employees are also innovative in coming up with new trends in the market.

Porter Diamond Theory

According to the porter diamond theory, fashion companies need to have a competitive advantage over other companies in the fashion industry. Companies participating in the fashion-forward Dubai show have indicated the role technology is playing in making them competitive (Lewis-Clemmensen, 2019). The technology allows the fashion companies to interact directly with the customers where the feedback from the customer is incorporated in new fashion trends. Designers are able to focus on a segmented market. The management principle of planning allows the managers to create fashion for different market segments depending on the taste and preferences of the customers. The fashion-forward case study shows how designers are producing ready to wear designs in mass production to meet the demand.

Michael porter’s diamond model is a theory that has been designed in a diamond-shaped structure which explains the competitive position of a given business or industry in the international market. The theory was developed by American professor called Michael Porter. Porter’s diamond models are also known has Porter Diamond theory of National Advantage. The theory was given this name mainly because it analyses all the factors which are necessary for an industry to compete favorably in the world markets in a structure that resembles that of a diamond.

The Porter’s diamond model can be applied can be applied in the global fashion industry in many ways so as to compete favorably in the international markets.

In order to establish a high production in the global fashion industry, the industry must ensure that all the required factors of production are available. There should be a steady supply of factors of production such as land, capital and labor (Abrar et al., 2019). Fashion industries cannot compete favorably in the global markets well without these factors. For example the industry requires people to supply labor for example those who are engaged in selling or making the clothes. Reduction in supply of raw materials such as leather in the global fashion industries reduces supply of clothes thus making the industry to start selling other substitute leather products. Price of the products produced in the global fashion industry may also be affected as a result of shortage of raw materials or even raw materials being sold at a high price (Beraja, 2019). An increase in in the cost of acquiring raw materials means that the total cost of production is going to increase thus increasing the cost of the clothes. Increase in the price of cloth will also affect the customer purchasing power thus leading to low sales for the global industries. Shortage of raw materials such as cotton and leather make the retailers to increase the prices of cotton and leather clothes since they have to pay more to the manufactures also.

Global Markets

Demand of the global fashion industry product may affect the ability of the industry to compete favorably in the global markets. Demand for the products can be affected internationally or locally due to various factors (Abrar et al., 2019). Low cost of imported clothes leads to decline demand of the locally produced clothes. These means that the locally produced goods will lack market resulting from decline in demand. Also, existence of new cloth fashions and styles of clothe may lead to decline in the demand of the older fashions. There is a need of the manufacturers to discontinue production of the older fashions of clothes and produce new fashions that suits the needs of the customers.

To gain a competitive advantage, companies have to leverage their strengths by focusing on is mission and goals. Instead of changing the company into something different from what they do, it is better to utilize its strengths to compete effectively (Bright et al., 2019). The effectiveness of leveraging the strengths depends on the understanding of the nature of the business. The success in the fashion industry depends on factors such as brand positioning, differentiation of the products, management of the manufacturing processes, and communication. It is important to understand the factors that promote sales and profits and implementing necessary strategies to boost production as well as the items sold. Leveraging strengths also involves adopting innovative approaches with the purpose of achieving the objectives of the business and expanding to attract new customers. Technology has facilitated the marketing of company products through different platforms; therefore, by using technology, a company attracts customers at a lower cost as compared with conventional marketing.

The global fashion industry is likely to shine in presence of foundation of related and supporting industries. Most of the companies rely heavily on partnering with other companies in order to create additional values to the customers thus becoming more competitive (Abrar et al., 2019). Fashion industries are more likely to benefit when these suppliers are part of the global competitors.

Various Government Policies

Various government policies may affect the fashion industries either positively or negatively. According to porter government is not an essential helper and supporter of industries either thus it cannot create competition amongst industries (Vlados, 2019). Government policies such has imposition of tax by the government affect the fashion industries negatively thus leading to them increasing the cost of their clothes. The government may also provide subsidies to the manufacturer thus leading to lowering cost of the production. These will help the fashion industries to realize high profits. Porter’s diamond model is an important tool that industries can use in order to experience there expansion. It also provides ways in which an industry can apply interrelated sets of location advantages in order to compete favorably in the global markets.

Companies are using the porters' diamond to improve their competitiveness by focusing on the factors that give the fashion company a competitive advantage over other companies in the market (Beraja, 2019). According to the case study on fashion-forward Dubai, fashion companies have identified their niche in the market that they focus on to have a more competitive advantage in the niche when competing with other companies. Different market niches have different needs and preferences; hence the focus on the niche allows companies to compete and have a competitive advantage in their area market.

Conclusion

In conclusion, strategic management principles allow fashion companies to strategize on an effective way to produce their clothes in an effective and cost-effective way to allow the companies to make a profit. The fashion-forward Dubai case study exhibit success cases where companies have been effective in the production of clothes and have remained consistent over the years, growing customer reliance and trust.

References

Abrar, M., Bashir, M., Safeer, A. A., Shabbir, R., & Baig, S. A. (2019). Pakistani Ready-made Garments Industry Export Competitiveness: Evaluation in The Context of Porter’s Diamond Theory. Revista Publicando, 5(18), 228-246.

Beraja, P. (2019). Fashion Forward Dubai (FFWD): Digitally Transforming the Fashion Industry? Winner of the 2018 EFMD Case Writing Competition in the category “Finance and Banking”

Bright, D. S., Cortes, A. H., Hartmann, E., Parboteeah, K. P., Pierce, J. L., Reece, M., ... & Gardner, D. G. (2019). Principles of Management. OpenStax.

Lantz, J. (2016). The Trendmakers: Behind the Scenes of the Global Fashion Industry. Bloomsbury Publishing.

Lewis-Clemmensen, V. E. (2019). Indigenous peoples' self-determination-Market-inclusion or not? The case of indigenous designs in the international fashion industry.

Vlados, C. (2019). Porter’s diamond approaches and the competitiveness web. International Journal of Business Administration, 10(5), 33-52.