Mango (Case Study Sample)

MANGO
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MANGO
This clothing design company has a fast-growing and advancing supply chain. The supply chain structure has changed over the last 25 years that it has been operational, to become amongst the largest shopping streets in most major cities around the world. As a retail brand, the company has built its own retail value as a household name. The whole system is based on the original idea of managerial and tactical detail, where the whole supply chain would have to follow a specific trend in its marketing and product promotion. Mango holds a ‘specific- target’ tactic in the product promotion and an effective logistics team (Rebecca Thompson 2013, p 12).
The chain targets women who desire to be dressed in the latest fashion trends. In the case that they would target the whole public, they would ultimately lose their customers, since they would lack commitment and the chain would not be loyal to the customers. This means that the actual target is probably less than 40% of the people who pass by the fashion shops the attempt to attract all 100% would result in the loss of identity (MANGO 2014, p 26). In addition to numerous promotional campaigns Mango has the values of all brand as strong and stable items. The stylishness and design put into the clothing items at a better position in the market. Franchise shops make up approximately half of the worldwide trade, considering that most of such shops are run on a consignment basis.
As a global firm, Mango are currently operating on a hairline efficiency level. To operate as a global competitor, a firm requires a significant market share which will promote the brand by virtue of its existing popularity. Although the products are popular and regarded as stylish, the brand’s presence in the global market is yet to be felt. In the case that they would choose to compete globally, a lot of resources would be required for brand promotion. The supply chain is not recognized as a major player in the clothing industry as the market leader, instead, it lags behind several other suppliers (Lau 2008, p 22). As much as this is a chain, the target of the marketing department is to have a fashion boutique within shops for easy coordination. This strategy will thus involve consideration of the two variables: price and exclusivity. The supply chain will aim at appropriate pricing, with varying prices for varying purchasing abilities. The chain is characterized by a well calculated marketing and supply position.
As a supply chain, Mango meets the economic, social and environmental values of modern global business, since the managing structure employs modernized tactics in the development of all supply chain sustainability plan. As an economic strategist, the managing body holds a draft economic target for every month for every outlet. In the case that this target (within reason) is not met, a comprehensive market analysis is carried out to find possible solutions within the market (Mangan, Lalwani & Butcher 2008, p 16). The social values of the whole company are greatly appreciated since the fashion company limits itself in terms of appropriateness and acceptance of an item in terms of religious and moral standing of the locals. The retail shops in regions where there are moral obligations to be adhered to see to it the local moral standing is upheld. The company has minimal opportunity to showcase its environmental consciousness, but the supply chains operate on a basis of clean business and active participation in care for the environment.
The current source of supply, is in Barcelona, where most of the work including design, development and creation of fashion items is done. Madrid, in Istanbul, Turkey houses some of the largest number of Mango stores, with most of the workers for the whole industry working for these two places (Salerno & Zaragoza 2011, p 4). The company enjoys the fact that the employees in these regions identify directly with the work they do (hence no need of outsourcing). The main drawback from these two regions in the company is that they are placed in regions where the general cost of production and sales is high. In the case that the company wants to gain significant profits, the price is transferred to the consumer. These regions are also disadvantaged because the additional cost of exporting to other countries significantly impacts the price if the final product.
Although the company originated from South America, the north is currently the better host for Mango, since the economic and socio-political scene is perfect for entrance by a new fashion line. The United States may be the best option for the creation of the bigger base for supply. The country has a significantly larger open market for clothing items, especially custom designing. The supply chain has bigger opportunities creating its main ...