The Men’s Wearhouse Case Analysis
Men’s Wearhouse is a specialty retailer of men’s tailored business clothing. Since its first store in early 1980s, it had developed rapidly till current hundreds of stores nationwide. Men’s Wearhouse developed its own culture, management theories and practices; however, the external environment of this industry is fiercely competitive. So the strategic issue in this case is how Men’s Wearhouse could keep high-paced development in this stagnant industry. Strategic analysis & options
Porter’s Five Forces Analysis of Men’s Wearhouse:
* The threat of new entrants is high because opening a men’s clothing retail store does not require much investment, and there is no political barriers for this industry. * The bargaining power of buyers is high because the competition among men’s clothing retailers is fierce. Men’s Wearhouse is using an everyday low price policy by selling at prices 20 to 30 percent lower than department stores, which is a reaction to price battle. * The bargaining power of suppliers is medium because merchandise is very essential to a retailer; however, there are plenty of clothing designers and manufacturers from whom Men’s Wearhouse can choose to cooperate with. * The threat of substitute products and services is low because clothes are what everyone cannot live without. And it is unavoidable for most people to attend some occasions requiring formal dressing. * The intensity of rivalry among competitors is high because the men’s clothing industry is a stagnant and competitive industry, where many chains close or consolidate every year. Recommendations
Attract more customers. Men’s Wearhouse is developing very fast, but because of the saturation of the market, its development will be slower and slower in near future. Attracting more customers will lower the intensity of rivalry among competitors. “Making a bigger pie” is the way to sustainable development....
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