R327test1 - R327- Test 1 1. Explain the difference between...

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1. Explain the difference between horizontal and vertical integration. a. Horizontal= joining of businesses in similar activities (mergers or companies), expand market penetration and eliminate competition a.i. Ex: Talbots and J. Jill b. Vertical integration= joining of businesses in different but related activities, consolidating supply chain, wholesale brands open own stores, fiber manufacturer makes fabric b.i. Ex: American apparel has its own fiber, consumer controls its supply chain 2. What is the difference between growing and mature industries? a. Mature= sales are stable year after year; lots of competition a.i. Mature= apparel b. Growth= dependent on new products and not much competition b.i. Growth= iphone, technology 3. Explain product development and examples of how it is used in the industry. a. Wholesale brand- Ralph Lauren, DKNY, Coach b. Private label- Mossimo at Target c. c.i. Advantage (private and store)- more control over product c.ii. Disadvantage- stuck with if (no partnership) branding itself d. Licensed product- business grants rights to sell logo d.i. Cobranded- relationship between retailer, product development, and Brand d.i.1. Candy and Vera Wang for Khols d.ii. Disadvantage- lose control of brand d.iii. Advantage- cheaper designer brands (Vera Wang) 4. What are trend items (Uggs) and explain where and why it is on the trend cycle. a. Trend item- popular taste at a given time b. PEAK in the trend cycle because if its in style everyone wants it 5. 5 point on the trend curve. a. Incoming- celebs wearing it, on the way to stores b. Pre-peak- consumers are catching on c. Peak- scarves and uggs d. Post- peak- still wearing but not buying e. Outgoing- sale items, new season 6. Khols youtube video- 3 challenges of the supply chain.
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R327test1 - R327- Test 1 1. Explain the difference between...

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