CK does not manufacture its own products. It engages more than 700 different manufacturers across the world to manufacture its products. No manufacturer produced more than around 4% of total production in the last year. This is considered very low by industry standards.

The market is heavily saturated with the presence of many players. CK is also witnessing rising competition from Internet-based companies selling apparel and accessories.

CK retails directly to individual consumers but a significant majority of their sales comes from wholesale customers. The three largest wholesale customers for CK accounted for a very high percentage of its total wholesale revenues over the last year.

Large capital resources are required to build a new apparel brand as huge investments in marketing and floor space would be required.

Counterfeit products represent a growing problem for the company. As the quality of counterfeit products is improving, this problem has the potential to dilute the company's value.
The requirements for setting up an Internet business are low, which makes it easy for new companies to start selling apparel and accessories online.

Government does not impose strong regulations for setting up a new business. The only requirement is to set up a business registration number.

QUESTION: Based on a Five Forces Analysis above, state and justify a strategy that CK should adopt in its current industry

Answer rating: 100% (QA)

Based on the Five Forces analysis provided a suitable strategy for CK to adopt in its current industry would be a differentiation strategy This strate... View the full answer