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Patchwork Pillow Industry Insights

This document provides an industry analysis of Patch, a company that produces patchwork pillows. It examines the size and growth potential of the pillow industry, the benefits of Patch's products, and how the company will compete. Patch faces various external forces including political, economic, socio-cultural and technological factors. It analyzes the pillow classification and key success factors. Competition comes from stores offering cheaper pillows or a variety of home goods rather than focusing solely on pillows. Sourcing raw materials faces political issues around cotton prices and environmental regulations. Economic slowdowns could reduce demand or prompt customers to buy cheaper alternatives.

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April Ann
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65 views3 pages

Patchwork Pillow Industry Insights

This document provides an industry analysis of Patch, a company that produces patchwork pillows. It examines the size and growth potential of the pillow industry, the benefits of Patch's products, and how the company will compete. Patch faces various external forces including political, economic, socio-cultural and technological factors. It analyzes the pillow classification and key success factors. Competition comes from stores offering cheaper pillows or a variety of home goods rather than focusing solely on pillows. Sourcing raw materials faces political issues around cotton prices and environmental regulations. Economic slowdowns could reduce demand or prompt customers to buy cheaper alternatives.

Uploaded by

April Ann
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CHAPTER 2

INDUSTRY ANALYSIS

This industry analysis will provide an overview of how large the industry, Patch is and the potential

for growth. Also benefits of the product and services offered by the company are stated. This will

also determine how the company will compete in the industry. The Patchwork Pillow is affected

by many forces in the external environment. These forces include political forces, economic,

socio-cultural and technological forces.

2.1 Industry Profile

2.1.1. Classification

 Durability and Tangibility

Patchwork pillow gives customer satisfaction as it will survive longer than of the house

other pillows that are easily destroyed and can be purchased once, due to its strong

quality. It cannot also be replaced so easily.

 Consumer Goods Classification

The patchwork pillow is considered as specialty goods. Since it is a pillow, it is a

personal need and consumers are willing to make a special purchasing effort.

2.1.2. Size

2.1.3 Competition

2.1.4. Key Success Factors

2.2 External Factor Analysis


Political

The primary political issue is about sourcing the raw materials. This has gathered a lot of the

attention from politicians especially in India as one of the source countries. In India, low prices

for cotton and high prices for chemicals have caused tens of thousands of farmers to go bankrupt.

Therefore, the company wants to adhere to social and environmental rules. It is willing to follow

the sourcing strategies. It gives importance to fair trade practices. Another political factor is the

need to follow the laws and regulations to suppliers or from where the Patch buys the raw

materials. Thus, activism and increased political awareness in the company have made this

essential.

Economic

The continuing economic slowdown is one of the external economic issues for Patch. This factor

will dent the profitability of the company. This may convince buyers to shift to cheaper kinds of

pillow or alternatives. Demand and supply are another principle factors that affects the

operations of the Patch. When demands are high, there might be insufficient supply of materials

to cover it up hence supplies cannot meet the desired demands and price will eventually increase

which would likely effect to price escalation. But when the country of the source of materials has

a high economic growth, the prices will surely drop and if the opposite happens, the price will

then inflate or it rise up. This may result to a competition of profits among the other similar

industry.

2.3. Competitor Analysis

2.3.1. Existing Competitors

Indirect Competitors  Mandaue Foam


 SM Homeworld  The Travel Club

 Tickles  Dewfoam,

 Blue Magic  Progress Home & Office

Direct Competitors

There are no direct competitors since there are no companies that only sell pillows alone.

Some of them sell furniture, bed sheets, and other household needs.

2.3.2. Potential Competitors

There are no potential competitors because businesses offer not only pillows but other

products as well.

The potential competitors of the patchwork pillow are those brands that offer cheap price

than our product since it is does not fit all budget types. Businesses that also offer a

variety of design and products who does not only sell pillows but other products as well.

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