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THE BROKEN LINK BETWEEN SUPPLY AND DEMAND CREATES CHAOTIC TURBULENCE (+controls)

Guy Lakeman
THE BROKEN LINK BETWEEN SUPPLY AND DEMAND CREATES TURBULENT CHAOTIC DESTRUCTION

The existing global capitalistic growth paradigm is totally flawed

Growth in supply and productivity is a summation of variables as is demand ... when the link between them is broken by catastrophic failure in a component the creation of unpredictable chaotic turbulence puts the controls ito a situation that will never return the system to its initial conditions as it is STIC system (Lorenz)

The chaotic turbulence is the result of the concept of infinite bigness this has been the destructive influence on all empires and now shown up by Feigenbaum numbers and Dunbar numbers for neural netwoirks

See Guy Lakeman Bubble Theory for more details on keeping systems within finite working containers (villages communities)

Environment Economics Finance Mathematics Physics Biology Health Fractals Chaos TURBULENCE Engineering Navier Stokes Supply Demand Strategy

  • 5 years 11 months ago

BATHTUB MEAN TIME BETWEEN FAILURE (MTBF) RISK

Guy Lakeman
Simulation of MTBF with controls

F(t) = 1 - e ^ -λt Where  • F(t) is the probability of failure  • λ is the failure rate in 1/time unit (1/h, for example) • t is the observed service life (h, for example)
The inverse curve is the trust time
On the right the increase in failures brings its inverse which is loss of trust and move into suspicion and lack of confidence.
This can be seen in strategic social applications with those who put economy before providing the priorities of the basic living infrastructures for all.

This applies to policies and strategic decisions as well as physical equipment.
A) Equipment wears out through friction and preventive maintenance can increase the useful lifetime, 
B) Policies/working practices/guidelines have to be updated to reflect changes in the external environment and eventually be replaced when for instance a population rises too large (constitutional changes are required to keep pace with evolution, e.g. the concepts of the ancient Greeks, 3000 years ago, who based their thoughts on a small population cannot be applied in 2013 except where populations can be contained into productive working communities with balanced profit and loss centers to ensure sustainability)

Early LifeIf we follow the slope from the leftmost start to where it begins to flatten out this can be considered the first period. The first period is characterized by a decreasing failure rate. It is what occurs during the “early life” of a population of units. The weaker units fail leaving a population that is more rigorous.
Useful Life
The next period is the flat bottom portion of the graph. It is called the “useful life” period. Failures occur more in a random sequence during this time. It is difficult to predict which failure mode will occur, but the rate of failures is predictable. Notice the constant slope.  
Wearout
The third period begins at the point where the slope begins to increase and extends to the rightmost end of the graph. This is what happens when units become old and begin to fail at an increasing rate. It is called the “wearout” period. 

Environment Economics Finance Mathematics Physics Biology Health Fractals Chaos TURBULENCE Engineering Navier Stokes Science Demographics Population Growth BIFURCATIONS MTBF Risk Failure Strategy

  • 4 years 9 months ago

POPULATION LOGISTIC MAP (WITH FEEDBACK)

Guy Lakeman
The simulation integrates or sums (INTEG) the Nj population, with a change of Delta N in each generation, starting with an initial value of 5.The equation for DeltaN is a version of Nj+1 = Nj  + mu (1- Nj / Nmax ) Nj
the maximum population is set to be one million, and the growth rate constant mu = 3. Nj: is the “number of items” in our current generation.
Delta Nj: is the “change in number of items” as we go from the present generation into the next generation. This is just the number of items born minus the number of items who have died.

mu: is the growth or birth rate parameter, similar to that in the exponential growth and decay model. However, as we extend our model it will no longer be the actual growth rate, but rather just a constant that tends to control the actual growth rate without being directly proportional to it.

F(Nj) = mu(1‐Nj/Nmax): is our model for the effective “growth rate”, a rate that decreases as the number of items approaches the maximum allowed by external factors such as food supply, disease or predation. (You can think of mu as the growth or birth rate in the absence of population pressure from other items.) We write this rate as F(Nj), which is a mathematical way of saying F is affected by the number of items, i.e., “F is a function of Nj”. It combines both growth and all the various environmental constraints on growth into a single function. This is a good approach to modeling; start with something that works (exponential growth) and then modify it incrementally, while still incorporating the working model.

Nj+1 = Nj + Delta Nj : This is a mathematical way to say, “The new number of items equals the old number of items plus the change in number of items”.

Nj/Nmax: is what fraction a population has reached of the maximum "carrying capacity" allowed by the external environment. We use this fraction to change the overall growth rate of the population. In the real world, as well as in our model, it is possible for a population to be greater than the maximum population (which is usually an average of many years), at least for a short period of time. This means that we can expect fluctuations in which Nj/Nmax is greater than 1.

This equation is a form of what is known as the logistic map or equation. It is a map because it "maps'' the population in one year into the population of the next year. It is "logistic'' in the military sense of supplying a population with its needs. It a nonlinear equation because it contains a term proportional to Nj^2 and not just Nj. The logistic map equation is also an example of discrete mathematics. It is discrete because the time variable j assumes just integer values, and consequently the variables Nj+1 and Nj do not change continuously into each other, as would a function N(t). In addition to the variables Nj and j, the equation also contains the two parameters mu, the growth rate, and Nmax, the maximum population. You can think of these as "constants'' whose values are determined from external sources and remain fixed as one year of items gets mapped into the next year. However, as part of viewing the computer as a laboratory in which to experiment, and as part of the scientific process, you should vary the parameters in order to explore how the model reacts to changes in them.

Environment MATHS Mathematics Chaos Fractals BIFURCATION Model Economics Finance TURBULENCE Population Growth DECAY STABILITY SUSTAINABLE Engineering Science Demographics Strategy

  • 7 years 8 months ago

FORCED GROWTH INTO TURBULENCE

Guy Lakeman
FORCED GROWTH GROWTH GOES INTO TURBULENT CHAOTIC DESTRUCTION 
 BEWARE pushing increased growth blows the system!
(governments are trying to push growth on already unstable systems !)

The existing global capitalistic growth paradigm is totally flawed

The chaotic turbulence is the result of the concept and flawed strategy of infinite bigness this has been the destructive influence on all empires and now shown up by Feigenbaum numbers and Dunbar numbers for neural netwoirks

See Guy Lakeman Bubble Theory for more details on keeping systems within finite limited size working capacity containers (villages communities)

Environment Economics Finance Mathematics Physics Biology Health Fractals Chaos TURBULENCE Engineering Navier Stokes Science Demographics Population Growth BIFURCATIONS MTBF Strategy Weather

  • 7 years 8 months ago

Hyperinflation Simulation

Vincent Cate
Simulating Hyperinflation for 3650 days.

If private bond holdings are going down and the government is running a big deficit then the central bank has to monetize bonds equal to the deficit plus the decrease in private bond holdings.  We don't show the details of the central bank buying bonds here, just the net results.

See blog at http://howfiatdies.blogspot.com for more on hyperinflation, including a hyperinflation FAQ.

Economics Finance Money Inflation Hyperinflation

  • 10 months 1 day ago

THE ILLUSION OF A U.S. PUBLIC DEBT MOUNTAIN.

Hanns-Jürgen Hodann
Neoliberalism uses a deceptive narrative to declare that money the government spends into the economy in excesses of the taxes it collects creates a ‘government debt’. In fact, the money the government spends into the economy in excess of the taxes is an income, a benefit for the private sector. When the government issues bonds, the money the private sector uses to buy them via banks comes from a residual cushion of dollars that the government already spent into the economy but has not yet taxed back.  If this were not the case, if the government had taxed back all the money it spent into the economy, then the economy could not function. There would be no dollars in the economy, since the government is the sole supplier of U.S. dollars! In the doted rectangle in the graph you can see that the dollars paid to the government for bonds sits in a dollar asset account. When the government issues bonds it simply provides the public and institutions with a desirable money substitute that pays interest i.e. Treasury bonds. It is a swap of one kind of financial asset for another. To register this swap the government debits the dollar asset account and credits the bond account.  When the time comes to redeem (take back) the bonds, all the government does is revers the swap, and that’s all!  When you look at the total amount of finacial assets in the private sector,  these remain constant at $ 25 BN  after the payment of $ 5 BN taxes. This implies that  no lending of financial assets of the private sector to the government has taken place during the swap operation. The money was always there. The debt mountain is an illusion!

Finance Economy

  • 9 months 3 weeks ago

OVERSHOOT GROWTH INTO TURBULENCE

Guy Lakeman
OVERSHOOT GROWTH GOES INTO TURBULENT CHAOTIC DESTRUCTION

The existing global capitalistic growth paradigm is totally flawed

The chaotic turbulence is the result of the concept of infinite bigness this has been the destructive influence on all empires and now shown up by Feigenbaum numbers and Dunbar numbers for neural netwoirks

See Guy Lakeman Bubble Theory for more details on keeping systems within finite limited size working capacity containers (villages communities)

Environment Economics Finance Mathematics Physics Biology Health Fractals Chaos TURBULENCE Engineering Navier Stokes Science Demographics Population Growth Strategy Weather

  • 4 years 9 months ago

Variables Influencing Business Problems Related to SAMS

Franz Weismann
A causal loop diagram illustrating a subset of variables influencing business problems related to the transitioning of the Social Assistance Management System (SAMS) from initial production deployment to steady state.
Inherent in the diagram is a representation of two well-known system dynamics archetypes:
  • Shifting the Burden, represented in the interplay between the B1, B2, and R3 loops, and
  • Limits to Success, represented in the interplay between the B1 and R5 loops.

Finance Government Budget COTS IT Applications Shifting The Burden Limits To Success

  • 5 years 3 months ago

FIRE_simulation

Phillip Balding
*scroll to bottom for user inputs*
FIRE_simulationv1.020200618
A personal finance simulation to predict retirement date. 

with some adjustable variables, and some probabilistic variables, you can run a simulation of 500 clones of yourself pre->post FIRE and see how many clones retire at what years.
Some clones get lucky with the market and eg low child costs -> retire early.Some clones get bad luck and take a few more years to retire!
can also track a clones assets, income, savings rate over time.
Also can use to stress-test (eg poor market returns), and goal seek (assets go to zero when i die. to retire earlier)
Top right are variables about me.Top left are market variables.bottom right are simulant/clone (output) info.
Middle 'folder' represents a clone of me.
some vars arent fixed, rather probabilities eg child costs being unknown, i have normally distributed it (my half of costs) around $12k pa and each clone of me gets a random cost on the dist for the simulation. I will add and update in next version
Sign up to insightmaker, click "clone insight" and build/adjust your own modelling. Or send feedback to phillip.balding@gmail.com

programming notes:-market return years running consecutively not random.-future years return FIRE rule-cap_gains and pay_super flows can now be neg-intro of super still seems too high, grows too much after 60-rearrange user input variables

To do:-get actual historical dividends-goalseek to die with 0 assets -> minimise retirement age.-year begin not integer? -auto interpolation seems good.-tidy the fucking model map mess-fix child costs at initial random dist.

Finance Fire Assets Income Savings Rate Retirement Stock Market

  • 3 months 3 days ago

Factors Affecting the Real Estate Market by 42151619

Ying Chen
Macquarie University | MGMT220: Fundamentals of Business Analytics | Assignment Task #3: Complex Systems by Ying Chen (42151619)

This simple model uses the following key factors to demostrate the behaviour within the real estate market, bank's interest rates, median sale price, and listed sale price.

Sliders located below can be used to set values to simulate the affects over time.

Housing Finance Bird

  • 4 years 11 months ago

Food-born pathogen outbreaks

Hamsterlord Hamster Hamster
This is an insight about food-born pathogens and what factors are affected by it's outbreaks. This is a huge issue that is not very well-known. The pathogens in food has been increasing their resistance to antibiotics by mutations. Because we are generally using antibiotics more each day, the resistance in these pathogens is growing more rapidly then it did before.

Health Care Finance

  • 4 years 8 months ago

Bol.com's Study Book Sales in The Netherlands

Wouter van der Does
This model gives an insight in the Study Book sales of Bol.com. Bol.com provides, besides of the B2C online business model, selling new books from suppliers to their customers, also a C2C online business model. This gives a customer the opportunity to sell their own books to other customers of Bol.com via Bol.com's website, by simply filling in the ISBN of the book on their second hand book website. The consumer pays a (relatively small) fee to bol.com for each book sold successfully. The payment part is handled by Bol.com, but the shipment has to be done by the customer (seller) itself. This model gives an insight of this process.

Sales Second Hand Books Finance Logistics

  • 2 years 10 months ago

BRANDED LIFESTYLE HOLDINGS LIMITED: STRATEGIC TRANSFORMATION IN CHINA

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TMA 02: BRANDED LIFESTYLE HOLDINGS LIMITED: STRATEGIC TRANSFORMATION IN CHINA

Learning Objectives

The primary purpose of this case is to teach students about the key strategic planning frameworks used in strategic management, including those used in external analysis (industry, suppliers, customers, and competitors) and internal analysis (resources, capabilities, and firm value chain). This case outlines the strategic planning process in order to enhance students’ ability to develop appropriate business strategies from Units 3 and 4. After working through the case and assignment question, students should be able to:

1.        Discuss the major activities in the strategic management process.

2.        Conduct strategic analysis using various analytical frameworks for external analysis (political, economic, socio-cultural, and technological analysis and Porter’s Five Forces) and internal analysis (resource-based view analysis, firm value chain, and core competence analysis).

3.        Develop a comprehensive business-level strategy based on sound strategic analysis.

 Word limit: 2500 words.

 This assignment is based on the case study Branded Lifestyle Holdings Limited: Strategic Transformation in China. This TMA will contribute towards the achievement of BB835 Learning Outcomes 7A2, 5, 6; 7B2; 7C2; 7D3. There are two tasks that you must perform to complete this assignment. The tasks involved in this TMA have been designed to provide you with practice in answering the types of questions you will face in the BB835 examination.

Task One: General Environment and Industry (1750 words, 60 marks)

1.        Shivkumar must carefully evaluate the general consumer trends in China. What are some opportunities and threats facing an apparel retailer such as Branded Lifestyle Holdings Limited?

2.        Is the Chinese apparel retail industry attractive? What should an apparel retailer do to succeed in this market?

Task 2: Creating and Sustaining Competitive Advantage (750 words, 30 marks)

3.        What are Branded Lifestyle’s key resources, capabilities, and weaknesses? Analyse the company’s performance, and compare it to key competitors.

Notes on answering TMA 02

Your assignment should be prepared in a report format.

This assignment builds upon skills you have developed from the activities in the units of BB835 that you have studied so far. As you prepare your answers for this assignment, ensure that you make use of the concepts you have read about and used, as well as the insights you have gained, during your BB835 studies up to this point. All of the units that you have read so far are relevant. However, in this assignment you should demonstrate a particular understanding of Units 3 and 4, which focuses on the internal analysis of an organisation and all aspects of resources and capabilities of the organisation and their relevance to strategy is discussed.

This TMA specifically tests strategic thinking skills and the ability to apply module concepts to understand the situation facing the case organisation, developing insights in the process and then using those insights to offer your perspective on what the case organisation should do and why. This aspect of the TMA task, offering your own view on how the case organisation should act, is an important measure of your ability to think strategically and construct a supported argument.

You are required to draw explicitly on relevant BB835 models, concepts and theories to support your analysis, conclusions and recommendations. In answering the tasks, it is important that you draw upon all of the information provided in the case study, including appendices and any statistical and financial data that is relevant to the assignment.

Your assignment should not exceed 2500 words in total. The 2500 words exclude appendices, which should not be excessive; your application of frameworks should not be presented in appendices.

                         A CASE STUDY OF BRANDED LIFESTYLE LIMITED.

 

Introduction

Daily, new businesses rise to occupy different levels within the market, going as far as the global market. On the other hand, other companies that might have once held the world stage fall into oblivion, never to recover. Some even experience stunted growth for several years. The survival and growth of a business are usually dependent on various factors. These factors, both external and internal, have significant sway on an organization. These factors are what can make or break a business within any industry. Any business should, therefore, consistently take them into account and consider what should be improved on and what should be done away with.

Various tools can be used to do these analyses. Two of these are the Porter’s Five Forces model and SWOT Analysis. This document intends to make use of these two tools to analyze the apparel company, Branded Lifestyle Limited, and the general apparel industry in China. The article begins with a brief history of the company and how it has evolved to its current state. It then looks deeply into the Chinese apparel industry; this will be done using the Porter’s Five Factor model, before getting to look into Branded Lifestyle using SWOT analysis.

 

Overview of Branded Lifestyle Holdings Limited

Branded Lifestyle Limited is an apparel retail company that was founded in 2011. This was after the acquisition of Hang Ten Group Holdings Limited by Fung Retailing. Fung Retailing Limited is the retailing branch of Fung Holdings Limited. Fung Holdings, which is the parent company, was established in 1906 as a family business, transformed into a trading company in the 1970s, and later on, in the next decade, expanded into logistics, distribution, and retailing. They offered these services throughout the Asia-Pacific region. The decision to move into designing, developing, and distributing branded apparel and footwear in 2005 was based on their experience in supply chain management. During its acquisition in 2011, Hang Ten had 792 stores across six countries. These countries, China, Taiwan, Hong Kong, Singapore, Malaysia, and South Korea, form the six markets in which Branded Lifestyle currently operates. The company has five apparel brands which it sells to these markets. They include Hang Ten, H: Connect, Arnold Palmer, LEO, and Roots. Out of all the brands, Hang Ten has taken the majority of the share in Branded Lifestyle’s business. These brands have remained profitable in most of the company’s Asian markets, except for China, where it has been struggling.

 

Overview of the apparel industry in China.

The emergence of Asian apparel brands in the 1980s catapulted the growth of the apparel industry in the region. The contribution of these brands, Giordani, Uniqlo, and Metersbonwe to the growth of the Asian market, further led to the influx of other international clothing brands like Gap, H&M, and Zara.

In the decade between 2003 and 2013, the Chinese apparel industry has grown at a steady rate of over eleven percent each year. It was a $122 billion industry as of 2013. The market comprises more than six thousand brands, which makes it very competitive. This competition has made even the most prominent brands have a tiny share of the market. The top brand, Metersbonwe, has only been able to gather less than two percent of the market share. A majority of the apparel brands in China outsource their production to apparel manufacturers, some of who made their brands. Other manufacturers, especially the small scale ones, chose to sell their none branded products online.

The Chinese market consists of both the online retail stores and the traditional brick and mortar stores. The major cities like Beijing, Guangzhou, and Shanghai had more retail outlets in comparison to other smaller cities. This made online retail more vibrant in smaller cities, in contrast to the larger cities.

 

Consumer Trends in China.

With China being named the second-largest economy in the world by 2014, a fete it achieved over a two-decade period of constant economic growth, there has been a rise in disposable household income. Coupled with its large population of over 1 billion people, it is a retailer’s paradise for a wide variety of products and services. There are four classes into which Chinese consumers can be placed, depending on one’s disposable income. An individual is either a poor, a value, a mainstream, or an affluent consumer. Value consumers make up the most significant percentage of the market (82%), while affluent consumers take up the smallest share (2%).

The most significant expenditure on clothing was attributed to those between the ages of 20 and 30. They considered fashionable products with reasonable price tags. These preferences, however, varied depending on the regions. Most garment purchases were made in department stores and particular retail stores. There was also an upsurge in e-commerce in the preceding few years. The largest share of the market was occupied by casualwear for the mass market. Luxury wear took the least share but had witnessed a steady spike recently, making it the fastest growing apparel segment.

 

Continue..

 

 

The attractiveness of the Chinese Apparel Industry.

While considering the attractiveness of the apparel industry in China, the Porter’s Five Factor model was the best fit for its analysis. It was determined to be the most ideal in discerning the competitiveness and whether the industry is profitable or not.

Suppliers in the Apparel Industry.

Owing to the massive number of apparel brands in China, six thousand brands, there is an equivalently large number of suppliers to meet this demand. The suppliers are manufacturers who are contracted to make the apparel for the various retail companies. Several manufacturers make non branded clothing. Anyone willing to get into the industry has a wide variety of suppliers to choose from. Those who are already in the industry can also easily move from their current supplier to a cheaper alternative.

Buyer Power.

The population in China, 1.36 billion people, is a vast market for a retailer. These people are divided into four consumer categories; poor, value, mainstream, and affluent. The value consumers make up the majority of the potential purchasers and, therefore, can easily sway the prices within the industry. This population prioritizes fashionable garments that are reasonably priced. They can, therefore, effortlessly shift to a rival retailer who is offering a cheaper alternative of the same or higher quality. The large customer base limits the power of the customers to dictate the terms of service to the retailers.

 

 

Continue..

 

The threat of Substitution.

The apparel industry cannot be threatened by substitutes since clothes have no replacements. The competition from rivals is, therefore, the only main threat. The threat of substitution for apparel retailers like Branded Lifestyle in China is the major apparel manufacturers. Apart from supplying garments to retailers, they also manufacture their brands. These manufacturers can easily sell their brands to consumers at a lower price, thereby undermining retailers. 

The threat of New Entries.

The entrants into the Chinese apparel market have been international brands that have captured the changing consumer preferences. These brands have taken up significant market share with their fashionable clothing that comes at a relatively lower price. These brands also can set up shop in various locations within a short time hence having a broader reach in the market compared to those that have been in the market for a more extended period.

Competitive Rivalry.

Competition within the clothing industry in China is very stiff, with over six thousand brands of clothing that are all potential rivals within this market. The most significant competitors, however, are international brands like Zara and Uniqlo. These brands can design and come up with finished products within a month; this is a fast rate that most local brands cannot catch up with. The standard rate of work for the local brands entails the designing and production of new items of clothing within six months and three months, respectively.

 

 

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SECTION 2

SWOT Analysis.

The use of SWOT analysis was implemented in the case of analyzing the performance of Branded Lifestyle Limited in the apparel industry in China.

 

 

Strength.

Branded Lifestyle had a minimal advantage over its competition when Shivkumar took over as managing director of global brands. There is nothing new that they offered that their rivals did not. However, they had several international apparel brands within their portfolio, which were trendy. This was an advantage over the other 6000 brands within the market. Their Hang Ten brand was reminiscent of the Californian lifestyle, something that the younger Chinese population would be drawn to. The H: Connect brand, on the other hand, represented the Korean popular culture, which had attracted some interest from the Chinese market. Owing to the variety of brands they had in their portfolio, Branded Lifestyle could easily direct their resources to the one that was in trend at a particular time.

The few selling points by Branded Lifestyle acted as an advantage to them. They could quickly expand into various regions without necessarily having to close down many shops if any. The new strategy they could develop could, therefore, easily fit into the current minimal expenses, overheads

 

Weaknesses.

Previously, the marketing team for Branded Lifestyle’s Chinese market had all come from Taiwan. They tried to replicate the success they had in Taiwan in the Chinese market without considering the needs of the local market. The trends in Taiwan were simply considered for the market in China without considering the widened disparities. There was minimal strategy that had been put in place to expand the Chinese operations. The person in charge was more concerned with the daily activities of the firm rather than scaling the business.

The management team was aware of the inconsistency between what they offered and what the consumers needed, but they had very little authority to make the relevant changes. The resources allocated to them were also very meager and could hardly do anything in terms of change implementation. They simply operated on the mantra of reducing losses while keeping the business afloat for as long as they could. The lack of ambition by the employees also played a significant part in weighing down the business.

The lack of a vision for the Hang Ten brand in china resulted in the making of an inferior brand awareness strategy. Besides, the lack of resources only made the situation. The management did their branding on a ‘one-fit-all’ basis. There were no branding campaigns that were tailored for the Hang Ten brand in the Chinese market. The china operations simply assumed that the brand was well known, and opening up stores without creating awareness would drive in customers. The result of this was more inventory and minimal sales, hence more losses.

Branding Lifestyle had just a little over one hundred shops in China, most of which were in the tier 1 cities of Shanghai and Guangzhou. The operational costs in these cities were very high while sales remained low. The continued losses experienced by the company forced them to move to locations with less foot traffic, which deepened the sales further.

 

 

Continue..

Opportunities.

As much as there are many brands in China, Branded Lifestyle still has a lot of opportunities it can grab. There is still a lot of market for their goods in tier 2, 3, and 4 cities where most of the value consumers are located. These cities have also witnessed a spike in online purchases due to insufficient brick and mortar stores in those areas. The company should, therefore, consider expanding its retail distribution to these prime locations.

In the top tier cities, it has been observed that most foot traffic is found in new shopping malls. With the boost in commercial real estate in these areas, there are several malls from which Branded Lifestyle can choose from. They should keep in mind that the perfect location is the popular ones. They can quickly move up their operations from the current lesser-known areas to these locations.

With the rise in smartphone users all across china, Branded Lifestyle should consider moving some of its operations online. Opening up an e-commerce store will enable them to cover a wider geographical area and more customer base. This is less expensive, considering the cost of real estate in China and will help them keep their operational costs low while maximizing their profits.

Threats.

The operational costs in tier 1 cities of Shanghai and Guangzhou are quite high while the sales are meager. Keeping up with their current trend of opening up stores in these cities will only deepen Branded Lifestyle’s losses. There has been a significant rise in the entry of international brands into the Chinese market. This has been fueled by the shift in consumer preferences to these brands. Even though the company sells international brands, it should strive to raise itself to a level playing field where it can compete fairly with these brands.

 

 

Conclusion.

The Chinese apparel industry has experienced exponential growth fueled by the increased disposable household income by consumers due to the improved economy. The high population has enabled the clothing industry to become very diverse with shifting trends. The most recent trends in the Chinese market have been towards international brands. There has been an upsurge of setting up shop by these global brands. These brands have come into the scene with the ability to design and manufacture clothes at a fast rate, which the local brands cannot sustain. There are over six thousand apparel brands in China, most of which outsource their production to manufacturers within the country.

 Branded Lifestyle Limited is an apparel retail company with several international brands within its portfolio. It has not been performing profitable for quite a while now. A new management team has been put in place to turn the situation around. Upon analysis of the business, they realized that the company had no strategic vision, and there could not tailor their operations for growth. The resources allocated to them were also very minimal. The previous team had also concentrated most of their services in the tier 1 cities where the operational costs surpassed the sales. However, the business was still positioned in a way that it could leverage some of its strengths and resources to achieve profitability. 

 

 

 

                                    References.

Branded lifestyle holdings limited: strategic transformation in china (2018). Ivey Publishing.

WARNING!

Warning, this is an example paper that was written by a novice writer. It is posted online because the writer did not get paid for a similar task.

Learning Business Management Technology Sustainability Finance Economy

  • 4 months 2 weeks ago

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