Liz Claiborne, Inc. The International Term Paper

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This is exacerbated by the fact that there is little product differentiation, and the threat of substitutes. However, brand identity does lighten this force a small amount.

Supplier power is another moderate force within the industry. Volume is very important to the suppliers, and supplier costs, especially in the instance of Liz Claiborne who must include manufacturers in their supplier list, are a large portion of the total purchase in the industry. There are considerable costs involved in switching some suppliers as well. Although it may be less expensive to switch bulk material suppliers, it would be more costly to switch others, such as manufacturing suppliers, who have production facilities set up to produce the company's clothing.

Lastly, barriers to entry are the least forceful impact in the retail apparel industry. Although small labeled designers enter the marketplace all the time, rarely does an organization enter at the scale of Liz Claiborne.

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There is a proprietary learning curve that is critical success, at this level of industry participation. There are also significant capital requirements needed to compete on an international scale. Although smaller apparel manufacturers are a competitive force, they simply are not able to take advantage of the economies of scale that companies like Liz Claiborne have to their advantage.

Conclusion:

In the end, although Liz Claiborne is a leading manufacturer of men's and women's clothing globally, it is questionable whether or not they will be able to continue their history of financial success. Competition by competitors such as: Benetton, Espirit, Jones Apparel, Polo Ralph Lauren, and Tommy Hilfiger is increasing, and the company is finding itself having to compete more often by price point. However, there are a variety….....

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