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INDUSTRY AND COMPANY ANALYSIS

Students Name

Institution Affiliations

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Date
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Abstract

The Allbirds is a textile industry that produces makes sportswear. Among other textile industries,

it has sportswear and leggings that are made from synthetic fibers called polyester. The company

is a secondary sector that manufactures sportswear from the merino wools and eucalyptus pulp.

It is a global company that aims at supplying its products to all the states in the world. Since the

company is producing its products from natural fibers, it puts the company in a strategic situation

to grow sales from new products and ensure sustainability. Allbirds Company exists as a

monopolistic competition because the textile industry has many buyers, and the number of

suppliers is also significant. It can supply its products to a more extensive market. From wool

shoes, the company was motivated and had efforts to bring change in the working out wear using

the gears made from merino wool. The company has also been supplying the tanks to some

regions of the world. The company form and place utility also has placed the company in

favorable directions to increase their sales.

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Introduction

Over the current years, there has been advancement in technology, and globalization has

promoted the developments and growth of the business. For any business to compete

competitively in the market, they have to change the technology tactics and identify the

underlying forces that may hinder the company or industry growth. My industry is a textile

industry producing products made from natural fibers such as wool from merino and pulp from

the bark of the eucalyptus tree. In purpose of writing this report is divided into three sections, the

company sections, suppliers and the customers. Besides other structures like competitors,

potential competitors, substitute products are also included in the report. It will give a clear

understanding of the company's business and the business environment, develop a strategy for its

success, and make efficient use of the limited resources (Griffith & Hoppner, 2013). These

industry reports will help the organization's board of directors identify the gaps within the

industry and thus will also give the board opportunity to suggest ways to manage and make the

organization compete favorably with others. The reports will help explain the efforts of

producing environmentally friendly products and report on the relations of society with the

business.

Background and products

Allbirds is my current company, and it is a textile industry that produces makes

sportswear. Among other textile industries, it has sportswear and leggings that are made from

synthetic fibers called polyester. The company is a secondary sector that manufactures

sportswear from the merino wools and eucalyptus pulp. The Allbirds textile industry is a

primary, secondary sector because their large plantation of the eucalyptus tree in some states is
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supplying the company with constant raw material supply if the suppliers did not deliver their

products on time. Also, the company has the merino sheep yard where they can obtain the wools

frequently for the sportswear production. Allbirds textile industry is well known for producing

sportswear made from natural fibers such as merino wool and pulp of the eucalyptus tree. It is a

global company that aims at supplying its products to all the states in the world Mohanty et

al.,2005). Since the company is producing its products from natural fibers, it puts the company in

a strategic situation to grow sales from new products and ensure sustainability. The industry

wants to develop athletic gear made from wool from merino sheep and create yarn using the

eucalyptus pulp. These ideas are to make them compete strategically with their competitors who

produce products that have adverse effects on the environment because other companies pay the

non-biodegradable products from synthetic fibers called polyesters.

Market structure is defined as the market characteristics that include the types of market

competition and the pricing of the products and services. The Allbirds company is a

monopolistic competition because the textile industry has many buyers, and suppliers are also

significant. It can supply its products to a more extensive market. A different competitive

company produces their products, and thus they have no opportunity to influence the market

price of the Allbirds sportswear products.

The company's primary products were first from the success of the wool shoes. Since

their products had become a favorite in some regions like Silicon Valley thus motivated the

company to produce some products related to wool shoes. From wool shoes, the company was

motivated and had efforts to bring change in the working out wear using the gears made from

merino wool. The company has also been supplying the tanks to some regions of the world. Its

services include low-interest loans to suppliers who may require financial assistance to boost
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their wool production. Besides, the company also offers health services such as health insurance

schemes to their workers and suppliers and health promotion services.

Assessment of the company products and services

Over the past two years, the company has been experiencing low sales due to price

elasticity and monopolistic market competition. To begin the most of the products that the

Allbirds Company produces are not a necessity. It started as wool shoes, and most people are not

motivated to carry out sportswear daily; thus, they cannot buy the product frequently, thus

reducing the demand for wool shoes. Currently, the company is producing both tanks and some

expected wear, which has led to an increase in demand and awareness of some of the Allbirds

products. The number of producers currently has been a significant challenge for the success of

the company. For the company to ensure contact supply of the products and service, they need a

continuous supply of the raw materials, which has been a problem since the few suppliers charge

their raw materials at high prices. For the company to make some profit, they have to sell their

products at a bit of bit high prices, thus reducing the demand of their products hence reducing

sales.

On the other hand, since the company is a monopolistic competition, its market structure

mainly uses advertisement methods to promote its products and services. Thus, the company is

investing a lot in advertising their products, which has led to the increase in the cost of the

products, which facilitates the rise in prices, hence a decrease in the demands—the graph below

showing the market assessment for the period.

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Retrieved from https://www.datapine.com/blog/sales-graphs-and-charts-for-managers/

Another significant economic factor, such as the form and place utility, has brought the

company success. In the form of utility, the company has made the products and services that

meet the customers' needs and wants. The market research conducted by the company realizes

that producing products made from natural fibers, wool, and eucalyptus is economical and

environmentally friendly, thus making many countries embrace our products, hence increasing

our sales. However, the place utility has also played a more significant role in increasing the

sales of the Allbirds products. The company has consistently ensured that its products and
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services are available for its customers by providing that the company has its own retail and

wholesale shops in each country that they supply their products to make the products accessible.

Non-economic forces like the weather have also facilitated the company's sales demand during

the long winter season. Since the company's primary products are sportswear made from wool, it

is realized that wool is more comfortable and warm than some clothes made from synthetic

fibers, thus making the company products welcomed and demanded by many people worldwide.

The changes in regulations that allow international trade and reduce taxation rates on the

exportation and importation of the products have played paramount importance in selling the

broads a broad at favorable prices to customers. The company is also using the new technology

that is blending the natural fibers to make products like tanks, sportswear, training gears that are

environmentally friendly since they are bio-degradable.

Economic outlook

A decrease in production and manufacturing statistics is one of the macroeconomic

indicators that greatly influence our company. When there is a decrease in manufacturing and

production, it means that the consumption rate is low. Thus our company is worried since this

harms gross domestic product figures, thus predicting low sales. Besides an increase in

employment is macroeconomic indicators that show indicate the progressive future of the

company. An increase in the number of employed people suggests the economy is growing, and

the consumption rate of products and services will increase significantly. For any investor that

would wish to invest in the business of product production within the next t1-3 years, the

increase in employment rate, increase in the commodity prices. The rise in population is one of

the significant factors that will help the nosiness achieve its success. At the same time, a decrease
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in the gross domestic product will pose challenges to the investor (Pal & Mittal, 2011). For

long-term investors, advancement in technology and an increase in the employment rate will help

the investor to achieve success. In contrast, continuous fluctuations in interest rates will hinder

the investors' activities.

Conclusion

Many companies are evolving, and they should embrace market research to compete with

others. They should ensure that they consider the company structure and the market structure to

achieve business success.

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References

Griffith, D. A., & Hoppner, J. J. (2013). Global marketing managers: Improving global

marketing strategy through soft skill development. International Marketing Review.

https://www.emerald.com/insight/content/doi/10.1108/02651331311298555/full/html

Mohanty, A. K., Misra, M., & Drzal, L. T. (Eds.). (2005). Natural fibers, biopolymers, and

biocomposites. CRC press. https://books.google.co.ke/books?

hl=en&lr=&id=AwXugfY2oc4C&oi=fnd&pg=PP1&dq=importance+of+natural+fibers&ots=gN

K6Nw_gLQ&sig=-jki1EbTAiWb_8VjmkFNxv9YINE&redir_esc=y#v=onepage&q=importance

%20of%20natural%20fibers&f=false

Pal, K., & Mittal, R. (2011). Impact of macroeconomic indicators on Indian capital markets. The

journal of risk finance.

https://www.emerald.com/insight/content/doi/10.1108/15265941111112811/full/html?

fullSc=1&fullSc=1