Strategy is the framework that managers apply to determine the competitive moves and business approaches that run the company. So one can say that :
Strategy is managements idea on how to best
- Attract customers
- Operate efficiently
- Compete effectively
- Create value
Strategy in the global apparel industry is based on a combination of production, buying, and distribution forces. A large number of typical apparel manufacturers are located in a low wage market. Many of them are having a small scale operation that employs a few to a few dozen workers. Apparel production is a highly labor intensive process.
The growing globalization of markets is changing the operational decisions of apparel firms. Despite growing national concentration, retailing activities remain quite local. The top 10 retailers worldwide operated in an average of 10 countries in 2000, deriving less than 15 percent of their total sales from outside their home markets.
It means that the retailer has to have a high degree of localization. Italy will cater to rest of Europe. Customer preference for each country has some variance. For example, the British seek out stores based on social sensitivities, Germans are price sensitive, and shoppers in the United states look for a mix of variety,, quality, and price.
When we look to strategy matrix chart (Integration Responsiveness Grid)
Apparel fall under the high level of local responsiveness and low to high pressure for integration for global responsiveness.
This leads to preliminary conclusion to have different short term and long term strategies.
Short Term Strategy : Exporting strategy
Long Term Strategy : Transnational strategy