Question

Critically explain how corporate growth strategies can contribute to gaining competitive advantage on a business-level in the fashion industry. Please use relevant theoretical frameworks and real-life example (s).

Answer 1

The fashion industry is a huge industry and is growing rapidly. Globally, this industry is worth over billions of dollars. So, if it's a startup or an established business, everyone wants to stand out in the competitive market with maintained growth.

Thats where the corporate growth strategies play an essential part in growing the fashion business and generating more revenue.

Growing the existing customer base is important to any growth strategy. An effective growth strategy addresses this by proper product placement, better marketing and creating an established online profile. To achieve growth, there is more focus on what is needed to make the products more visible.

The financial aspect is considered as the most important part of a successful growth strategy in the fashion industry. Without nice financial projections, growing poses increasingly difficult challenges. Hence an effective strategy reflects more on positive and genuine financial growth.

To grow in an effective and efficient manner, internal operations have to run properly with little or no margin for error. A good strategy helps in organization of business and maintain efforts to achieve growth. All employees are aware of the goals laid out in the growth plan and insist that everyone is on the same plan.

The fashion industry is continuously evolving and changing, hence by using a good business plan the company can build an effective growth strategy to achieve financial and creative success.

There are some very inspiring examples of how a good and innovative growth strategy can make all the difference in the market for a brand.

A leading athletic apparel company organizes free yoga classes in its California stores on Saturday and Sunday mornings. By doing so, it is able to position itself as a hub for fitness and conversation, improving its branding from an apparel company to one that embodies the values of its customers and the community.

A world fashion leader has an exclusive series that they only release on certain special occasions through select channels. For example, in a fashion event, only a limited selection of bags from the collection was available to purchase online. The customer had to buy it right there and then, else it will no longer be available after that. This exclusivity makes customers more eager to buy  as well as make their products more desirable and coveted.

A renowned company is footwear and fashion accessories, donates a pair of shoes to charity for every pair of shoes bought. The company founder travelled to Argentina and witnessed the struggles faced by children without shoes. This positioning worked so wonderfully that this company today is worth hundreds of millions of dollars.