Cortefiel Ing

As the attractiveness of the textile industry where we Cortefiel operates the following conclusions, based on Porter's Five Forces:
a) Intensity of competition: To measure the intensity ofcompetition we must look at a number of factors: ⋄ Decreased attractiveness of the industry
i. Number of competitors and balance between them: in this industry there is a growing number of establishments. Sowe can deduce that the intensity of competition in this sector is high, and therefore the attractiveness of the industry decreases due to reduced tax earnings
ii. Growth rate: industry reflects anaverage annual growth of 4% in the last ten years. We can see that it is a mature market so that competition intensifies in the sector to attract and keep customers. As we conclude that theattractiveness of the industry decreases with increasing competition
Mobility and exit barriers: there are no barriers in the textile sector make it difficult for companies to move from one segment to anotherfreely, so that the intensity of competition intensifies decreasing their attractiveness
Cost Structure of the company: fixed costs (storage costs) are low when dealing with perishable products. Thisintensity factor is less competition and thus increases the attractiveness of the industry
Product differentiation: through the design and brand essence, so the intensity and reduces competition andincreases its attractiveness
Diversity of competitors: there is a wide diversity of competing forms ranging from neighborhood stores to multinational chains. This increases the intensity ofcompetition and reduces their attractiveness.
a) Potential Competition: are high due to the reduced costs required to open a store, lack of administrative restrictions, standardized technology ... so thenumber of potential competitors is high, reducing the attractiveness of the industry ⋄ decline in the attractiveness
b) Substitute products: there are no substitutes for textiles. This makes the...