Introduction
Michael E Porter’s Five Forces Study gives a framework of analysis, appraisal, and analysis of the industry and its dangers. A system is vital for projecting the probable evolution of the competitive scenario and operates in five distinct components (Goyal, 2020). The Five Forces model works best when applied to the whole market, rather than a particular sector and its minor rivals. According to Michael Porter, the industry should be examined based on the following factors: suppliers, rivals, customers, substitutes, and new entrants. Based on this model, this essay examines Arcteryx not as a retail industry but as a component of the entire fashion industry.
Competition
Arcteryx is not alone in its focus on outerwear; several other businesses create comparable items but do not promote them as such. Patagonia, for example, produces coats, jeans, and other clothes intended for the outdoorsman or lady who enjoys spending time in cold weather locations. Their product line includes classic styles such as puffy fleece jackets and zip-up fleece vests, as well as new designs that combine comfort and function, such as their new waterproof down jacket, which has built-in insulation at critical points along its body and is ideal for colder weather conditions (Spann,2018). Arcteryx competes with other companies in the sector by creating high-quality items, giving them a competitive edge.
Suppliers
Arcteryx purchases things in bulk, giving them an edge since they can purchase goods wholesale. Purchasing in bulk allows the firm to avoid purchasing things at exorbitant pricing. Purchasing items at a low cost allows the company to compete well with other businesses by selling the commodities cheaply.
Substitutes
Arcteryx has been able to counter competition by consistently increasing the quality of its commodities and retail pricing. Arcteryx commodities cannot be substituted with others in the sector since the company’s major rivals are outdoor brands that offer the same commodities at a relatively high price. Furthermore, the organization offers a large range of items from which the buyer may choose.
Buyer
Buyers’ negotiating power is established by their ability to pay for the products or services. The firm accepts a range of payment options for goods purchased from them. Customers may pay with credit, cash, or even mobile money transactions. Furthermore, the company’s negotiating power is boosted because purchasers may purchase goods at a lower cost if they buy in quantity.
New participants
Arcteryx is now challenged by new market entries such as Chanel, Nike, and Louis Vuitton. These emerging industries have low supply costs, use comparatively lower costs in manufacturing, and their sources are relatively inexpensive. Companies like Nike have begun to teach their staff, giving them the benefit of having highly trained personnel in their job.
Conclusion
In conclusion, it can be said that many benefits come with being involved in this type of business. However, it is also important to remember that not every company will work out as expected, so it is best if you do your research before deciding whether this industry is right for you. The industry has been growing rapidly in recent years, and it is expected to continue doing so. Lastly, The Company’s products are very attractive to consumers, who are willing to pay more for them than for other brands. This is because of the high quality and durability of these products and their ability to provide comfort and durability in use.
References
Goyal, A. (2020). A critical analysis of Porter’s 5 forces model of competitive advantage. Goyal, A.(2021). A Critical Analysis of Porter’s, 5.
Spann, K. (2018). How to drive change via dashboards: An approach to measure the impact of global campaigns for a business-to-business company. Applied Marketing Analytics, 4(1), 37-45.
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