Seminar paper from the year 2022 in the subject Business economics - Miscellaneous, grade: 1,3, Lillehammer University College (International Tourism Studies), course: Strategy, language: English, abstract: Example for Porters five forces: fictionary loungewear industry called 'Sosleeve' The loungewear industry is mature and there is no decline in this industry. People need it at home and sometimes for also leaving the house, doing grocery shopping, going on walks etc. Let's assume that the expected growth by 2022 is 200 billion dollars. Factors that positively influence the market are style and fashion trends, economic growth and the unstoppable globalization. In the life cycle the industry would be currently at the Maturity stage. If we look at the competitors we could say that could be Lululemon, ASOS, SKIMS and Free People. Asos owns for example several other brands and its possible that thousands of other firms are competing at a local level. The threat of new entrants is relatively low because new competitors are not likely to imitate established players within the industry.
The company has invested billion dollars in marketing communication and we can clearly see that the brands are global. A new entrant has to spend a high amount of money to compete in the market which means that they have to invest in human capital which is not easy. That means that the entry barrier is not easy to enter. New brands would have an easier task if the only way is to compete at a local level because then you only need a limited amount of resources and additionally, it is easier to get access to distribution channels who are local. If the company wants to act as a global player it should enter smaller niches of the market connected with smaller investments.
