SWOT Analysis of the Fashion Industry

Save

SWOT, an in-vogue form of strategic planning, is ideal for the volatile fashion industry. SWOT studies evaluate "strengths, weaknesses, opportunities and threats" involved with stated business objectives. Both internal and external factors are considered. Analysis then defines favorable and unfavorable factors and their potential impact on the end-goal.

SWOT

  • A SWOT analysis covers four areas of consideration. The first "strengths" takes into account internal attributes that will positively affect the business objective. The second area, "weaknesses," identifies potential weak-links within the company's control that could contribute to a detrimental outcome. The third category, "opportunities," analyzes external conditions that favor end-goal achievement. Finally, external "threats" that are beyond the company's control face evaluation.

Fashion Realm

  • Fashion is a multifaceted industry comprised of design, production, distribution and merchandising factions. The global fashion market is broken into geographical segments including the Asian, European and U.S. markets.

    Boundaries must be erected around the segment of the market to be analyzed. Those boundaries could include geographic regions, particular brands, designer lines and particular cogs within the fashion wheel, such as garment manufacturing or junior-retail sales. The business objective itself narrows the area of fashion that will be considered on the SWOT study.

Timing

  • It is wise to conduct a SWOT analysis prior to opening or expanding an industry business. Before plunging into unknown seas, authorize a SWOT study. It will reveal your market's climate and reduce financial risk.

Strengths

  • A brand's strengths are resources that contribute to its competitive edge. Factoring into a line's strengths are its reputation, its loyal consumer base, proprietary knowledge, competitive sources of raw materials, talented labor pools, industrial advantages and trade connections.

Weaknesses

  • Lack of strength in an area equals weakness. A new designer, without a reputation, is a negative point. This lack of name recognition would be listed as a specific weakness. A new line, without a following, would be another weakness. A costly labor source would be added into the category. Competitive disadvantages within company control land in this portion of the study.

When

  • Emerging opportunity often proceeds the SWOT. When international trade barriers come down, an industrious designer may be spurred to create a line featuring Thai silk. Easy access to this inexpensive quality fabric may be a windfall. Tapping into the maquiladora labor pool is another such opportunity. When opportunity knocks, order a SWOT.

Threats

  • Threats to doing business as usual also instigate SWOT studies. These external negative changes can impact the fashion industry by crippling profits. Shifting trends, the tightening of consumer discretionary income, trade barriers and governmental regulations increasing minimum wage all appear on SWOT radar.

Related Searches

References

  • Photo Credit mode image by Kai Koehler from Fotolia.com
Promoted By Zergnet

Comments

You May Also Like

  • Airline Industry SWOT Analysis

    A SWOT analysis--a review of strengths, weaknesses, opportunities, and threats--is a core requirement of any organization, and essential to understand any industry....

  • Example of a Business Plan for a Fashion Designer

    The fashion industry is a very competitive business filled with talented, creative people who set styles and trends. Even a small designer...

  • Timberland SWOT Analysis

    Among outdoors types, Timberland is a household name for quality clothing and, particularly, hiking boots. The company has been in business for...

  • What Is SWOT Analysis in Marketing?

    A SWOT analysis is a detailed assessment of a company's strengths, weaknesses, opportunities and threats (SWOT), taking into account everything that can...

  • SWOT Analysis of the Media

    A SWOT analysis is an analytical and qualitative tool used in businesses and organizations to assess the possible benefits and drawbacks of...

  • SWOT Analysis of the Advertising Industry

    SWOT analyses evaluate the strengths, weaknesses, opportunities and threats of a business operation. A SWOT analysis of the advertising industry would address...

  • SWOT Analysis of Manufacturing Industry

    The purpose of a SWOT analysis of the manufacturing industry is to identify the key factors that affect the success of the...

  • SWOT Industry Analysis

    A SWOT analysis is a study that helps a company understand its internal and external business environment. It compiles information about both...

  • How to Write a SWOT Analysis Report

    Knowing how to write a SWOT analysis starts with understanding the sections you need toi nclude and what goes in each one.

  • How to Do a SWOT Analysis in Retail

    Retail companies, like any business, benefit from an in-depth look at their profitability and operations by conducting a SWOT analysis. A SWOT...

Related Searches

Check It Out

3 Day-to-Night Outfits for the Work Week

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!