Excellence Clothing Company Analysis
The clothing companies fall under retail industry since it deals with sales of goods and services to the customers. The retailing industry is further divided into discount stores, department stores, demographic stores, seasonal stores and specialty stores. Department Stores refer to large companies that put forward vast variety of goods and services. The Discount stores offer a broad collection of goods and services even though they compete primarily on price. Demographic stores aim at a particular section of the market (Shankar and Bolton 2004). For instance, the high-end retailers focus mainly on the rich people. The retailing industry is also segmented into two categories based on what the company deals with that is, hard and soft categories. Clothing falls under the soft category of the retailing industry. In this category, the business operators deal with apparel, clothing, and other fabrics. This essay will review the income statement and balance sheet of Excellence Clothing Company; discuss the possible causes of decline in profit in 2014. Afterward, it will give the possible
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Initially, the business used to work under the basis of made-to-order basis (Investopedia Staff 2013). The people used to select their preferred color, garments, size and then wait for the experts to sew their clothes at an agreed price. However, currently, it has transformed to ready-to-wear basis of operation. The business is very lucrative and currently, multibillion dollar companies such as Wal-Mart have invested in it. They have established huge distribution channels, sophisticated management systems, large scale marketing plans, and financial deals. The retailers usually differentiate themselves from the stiff competition and in most cases the strategy that a corporation decides to employ to sell its products is an essential factor that determines its
Initially, the business used to work under the basis of made-to-order basis (Investopedia Staff 2013). The people used to select their preferred color, garments, size and then wait for the experts to sew their clothes at an agreed price. However, currently, it has transformed to ready-to-wear basis of operation. The business is very lucrative and currently, multibillion dollar companies such as Wal-Mart have invested in it. They have established huge distribution channels, sophisticated management systems, large scale marketing plans, and financial deals. The retailers usually differentiate themselves from the stiff competition and in most cases the strategy that a corporation decides to employ to sell its products is an essential factor that determines its