Analysis Of The Curtain Manufacturing Industry

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Industry and competitor analysis.
This analysis gives insight into the industry and market a business intends to operate in.

Rivalry among existing firms
Number and balance of competitors:
In this industry there are a considerable amount of players. However price competition is not highly prevalent as businesses charge customers for the quality of the finished good and the service provided. Prices charged vary according to the type of curtain fabric and designs. Therefore customers are willing to pay a higher price for products with higher quality fabrics and designs.

Degree of difference between products:
Curtains are similar in structure as it is material suspended from above on a rail. However the designs, colors and the quality of
183). There is a high possibility of fabric manufacturers entering the curtain manufacturing business as the barriers for entry are quite low. This enhances the bargaining power of suppliers.

Bargaining power of buyers:
Buyer group concentration
The buyers of curtains are large in number which indicates that buyers are not concentrated thus lowering their ability to affect the profitability of the curtain manufacturers. However if the high income earners are targeted to charge a premium price, this case would present a concentration of buyers and they are able to pressurize firms in the curtain manufacturing industry to lower costs.

Buyer’s costs:
Curtains are a much needed product for any household. Therefore buyers will be more sensitive to the price it pays and would bargain to get the best price for the product.

Degree of standardization of supplier’s
However there is a possibility that buyers could enter the industry as barriers to entry are low.

Threat of Substitutes:
Substitute for curtains are very low. It is quite common to see plastic or wooden blinds used in office settings. However in homes and hotels this is rarely seen as curtains give a personal touch to the interior design and makes living spaces more comfortable. In luxury hotels and homes it is quite evident how curtains are used to elevate the elegance and sophistication. Different textures and colors of fabric are used to create elegant spaces. In the event plastic or wooden blinds or such substitutes were used, the space would definitely not have the same ambience.

Threat of new entrants:
The barriers to entry in this industry is quite moderate to low. Therefore there is a threat of new entrants. However customers wish to have quality goods and excellent customer service. By differentiating our business from competitors by offering durable products with high customer service standards this threat can be

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