The men’s retail clothing industry is very competitive and often time men tend to have less brand loyalty. In this regard the threat of substitutes for Men’s Wearhouse is very high. There are many companies that offer similar products and obviously target the same audience in the same regions. Competitors of Men’s Wearhouse primarily include specialty men are clothing stores, traditional department stores and off-price retailers. Competition is very high with Jos. A Bank, Burlington Coat factories and Brooks Brothers. These companies all target both young and older men. The good news is usually when it comes to men’s wear like suits the fashion style never changes to drastically. No matter what the season suit styles don’t change and often times if you are producing high quality products that are affordable you will have no problem competing. As mentioned earlier Men’s Wearhouse has been around since the 1970’s. Both they and the competition have been around long enough to own a piece of the market share. The nature of their target market often has more new people coming in then leaving which is good for industry. Saying this though means the competition for those customers is intense because they have no prior brand loyalty. Low prices often help Men’s Wearhouse compete for the new customers every day.
For large retail men’s apparel companies the power of the buyer is medium. Most customers when purchasing products don’t purchase a lot at one time, however because the switching cost of going to one company to another isn’t existent they must listen to customer’s views and have great customer service. Because products sold at Men’s Wearhouse are often looked upon as a commodity the price is inelastic. This is why having lower prices then competitors is a must. Men’s Wearhouse outsources products generally to Asia due to the fact that producing products there is so much cheaper. The cost of manufacturing saves much more money. This being said supplier power is not very high, due to substitutes. SWOT Analysis (Strength, Weakness, Opportunity, Challenge) Men’s Wearhouse has a very diverse product portfolio to make sure they appeal to males of all ages and to any special occasion. Their management approach is very hands on and is a huge strength and a key part of the success they have had over the years. They use a hands on approach and send both lower and upper management for training to make sure each manage use the same approach and that the company is running as one. Their website is also a great strength due to the fact that it reaches out to customers in all parts of the world and one can efficiently navigate through it. They have a enhanced filtering system which allows customers to find exactly what they need without spending to much time and effort searching. Finally and maybe the most important strength is the well known
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- Fall '15
- Maths, Financial Ratio, P/E ratio, Men’s Wearhouse, PEG ratio, EV/EBITDA