The thesis explores how the Danish fashion industry can improve its competitive power on the North-German market. Three analytical parts shed light upon the subject: First, the North-German market is analysed, using PEST and Porter’s five forces. The competitive situation is identified as sound, but the market is facing challenges such as the financial recession and end-consumers that have become more careful in their consumption. Despite a low penetration level of the North-German market, the Germans have shown a growing interest for Danish fashion, which is more modern and informal compared to the conservative look they have preferred earlier. The market further offers one of the highest purchasing power parities in the country and an increasing demand for medium-priced clothing of good quality. The second analytical perspective is Robert M. Grant’s framework for analysing a company’s internal resources and capabilities (2005). The framework analyses a company in-depth through Porter’s Value Chain and suggests a strategy based on the identified capabilities and key strengths. The framework has been modified in this thesis to match the goal of the analysis, namely mapping the Danish fashion industry to reveal what resources and capabilities already exists that can be used on the North-German market to improve its competitive power. The collected primary data illustrates that the companies within the industry are similar in many ways, have low budgets for marketing related issues and that the key strengths to use when penetrating the North-German market further is the brand profiles and the design. The third analytical perspective is the theory of the Dominant Logic, by Bettis and Prahalad (1995). The analysis is based on the outcome of the first two analyses and uncovers how the three identified dominant logics affect the Danish fashion industry: Firstly, the one-way communication strategy does not reach the end-consumers. Furthermore, there is a lack of webshops and co-operation internally in the industry. The keyword to success is interaction between the different actors in the fashion field; designers, companies, retailers, end-consumers and the media. If the industry does not deal with the dominant logics, it will decrease its own competitive power. Four identified issues will help the industry improve its competitive power on the North-German market; first, analysing the German culture; second, innovation of the communication strategy; third, innovation of the online appearance; and fourth, co-operation within the industry.
|Educations||MSc in International Marketing and Management, (Graduate Programme) Final Thesis|
|Number of pages||84|