Question

Using the internet, research the handbag industry and document the value chain for that industry. Then research, Dooney and Bourke (dooney.com) and document what part(s) of the value chain they participate in.

Answer 1

Demand for the Global Handbag has resurged over the past five years, as global economic conditions have improved and consumer confidence has increased. In the coming years, demand for handbags and accessories will grow as conditions in the global economy strengthen, especially in Western Europe and North America.

• Demand for handbags and accessories will grow as the global economy strengthens
• As the world economy strengthens, demand for the industry's products will increase

Barriers to entry in the Global Handbag and Purse Manufacturing industry are generally lower in countries such as China, Vietnam and India. Governments and companies in these countries actively seek foreign investment to develop the industry and utilize the comparative advantages they have to compete with more developed countries. For instance, operators in these countries have greater access to low-wage labor, and manufacturers in developed countries must compete with manufacturers in low-wage countries, as well as large multinational corporations that have the capability to set up manufacturing operations overseas.

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Global Handbag & Purse Manufacturing Industry are

• Establishment of brand names
• Access to niche markets
• Economies of scope