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Fruit of the Loom - Research Proposal Example

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Fruit of the Loom is an American company and a subsidiary of Berkshire Hathaway- owned by Warren Buffet.Founded in 1851 by Robert Knight, firm is engaged into the manufacturing of clothing specially underwear, socks and other consumer clothing items…
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Fruit of the Loom
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Download file to see previous pages The main focus of the business is on producing consumer clothing of wide range catering to the needs from children to senior citizens. The overall business model of the firm is based upon selling its merchandize to chain stores and other outlets which than sell out the products of the company to the general public. The overall product range of the firm is really diverse and includes underwear as well as designer socks aimed at mass market accessed through these superstores and other chain stores. Fruit of the Loom does not sell directly to its customers through its own outlets. Firm also sells designer socks and sell them in different varieties aimed at different target customers. The overall range of socks includes designer socks for men, women, boys, girls as well as toddlers. This diversified range of products therefore caters to different needs of the customers while at the same time provides essential utility. The different ranges according to gender however are further divided into suitable categories such as “Everyday Basics”, “Stays Back”, “Odor Special”, “Sport Stretch”.1 The range of designer socks therefore covers almost every market segment and is rightly placed in the market to cater to the needs of mass market while at the same time offer designer looks and utilities. ...
Such situation therefore may indicate that overall demand for designer socks may be low as consumers may not be willing to spend on high priced items. Social & demographic factors Designer clothing always suggest prestige and honor and those who use such type of clothing often attempt to build such image. As such designer products are often used by the consumers falling in high income earning groups. Technological trends Technology is shifting towards making designer socks fit to different needs of the consumers. Add-ons such as ankle support, no-fading of colors, odor-control technology etc are some of the key technological changes which will further create niches in the market. Firms focusing on offering such technological add-ons therefore can certainly be dominating in the market. Regulatory issues Regulatory issues may come in the form of health related regulations which may force firms to adapt certain technologies and practices which can reduce the health risk associated with the use of such products. Further, issues like improper labor standards, child labor as well as unhygienic conditions in countries from where raw material is imported can create significant challenges for the firms to deal with. Five Forces Analysis Threat of new entrants Though the overall cost of entry may be not be relatively high however, it may be relatively difficult for newcomers to dominate a market which is full of already established players in the market. Though consumers may prefer a certain image or attachment with a designer brand however an innovative product by a new entrant can disrupt the market. As such the overall threat of new entrants may be ...Download file to see next pagesRead More
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