Commercial Strategies that Work in the Brazilian Textile Industry

Wanqing Zhu^*
*Correspondence: Wanqing Zhu, Department of Textile Composite Materials, Institute of Composite Materials, Tianjin, China, Email:

Keywords

Management capability • Market performance • Financial performance

Introduction

The IO approach received some criticism due to its inattention to dynamic environments, which strengths competitive views, namely the resource based theory and the dynamic capability approach. As a result, one can find a variety of typologies in the literature to describe how firms compete in specific businesses or industries by utilizing their competitive advantage. Given the emphasis placed on the theory of organizational knowledge creation and the knowledge based theory, knowledge has emerged as the most strategic resource for businesses. This study aims to understand how organizational performance in Brazilian textiles companies is affected by the interaction between strategy capabilities (marketing, technology, and management), strategy types, strategy formulation quality, and implementation capability. This study also aims to better understand the primary strategic factors that drive the financial performance of Brazilian textiles companies in this context [1].

Discussion

Porter's generic strategies have become the most widely used framework for strategic orientation over the past 30 years. Over the course of these years, a significant amount of research on this topic was conducted. These studies revealed a variety of levels of results, some of which supported Porter's assertion that a company must choose between cost leadership strategies and differentiation strategies or risk becoming "stuck in the middle" or without a coherent strategy. However, more recent research has shown that combination strategies can be effective and that other studies disagree with Porter's assertion. For instance, we found evidence to support the viability and profitability of combining distinct strategies with coherent generic competitive strategies. When compared to businesses that only employ the cost-leadership strategy, those that employ a combination strategy typically experience significant incremental performance advantages. However, the authors discovered that the incremental difference between businesses employing a combination strategy and those employing only a differentiation strategy was unaffected. Companies that are considered to be "stuck in the middle" perform worse than those that employ one of the generic strategies— combination, cost-leadership, or differentiation [2].

Recent studies appear to demonstrate that combination strategies and differentiation strategies are superior indicate that Small and Medium-Sized Enterprises (SMEs) primarily employ a focus strategy, with differentiation appearing to be the most commonly employed competitive strategy by SMEs in market niches. These authors looked at two ways to differentiate that are important to SMEs: i) product quality and ii) product innovation. They emphasized the significance of product innovation as a survival strategy in dynamic environments. Brazil's textile production chain has become disjointed as a result of its low level of competitiveness, as well as a lack of cooperation and networking among its constituent parts. In general, businesses import raw materials, finished goods, machinery, and equipment, particularly from the aforementioned Asian nations, in an effort to cut costs. To compete in the Brazilian confections commodity segment, the garment industry, in particular, imports finished goods and is uninterested in what happens with weaving [3-5].

Conclusion

Incorporating informatics technology, the use of plotters, and electronic devices in sewing machines—improvements that a large portion of small garments can adopt—changes the used technology slowly and incrementally. As a result, only the strategy of product differentiation through design and prompt customer response remains viable. This last methodology originates from the serious strain of the huge number of home grown and little piece of clothing, formal and casual, and of the ease to import unfamiliar items. In addition, the majority of businesses in the industry innovate in design by imitating the new standards of fashion industry leaders through the annual release of collections. However, studies on the strategic behavior of the Brazilian textile industry between 1970 and 1990 reveal that the textile companies' immediate response to the gradual opening of the economy was to look for lower prices. These businesses relocated to regions with lower labor costs, such as the Brazilian Northeast, and engaged in vertical integration throughout the supply chain, particularly in relation to the subsegments of retail and spinning. According to the authors, the cost leadership strategy remained the one that entrepreneurs who sought economies of scale and cost reduction employed the most.

Acknowledgement

None.

Conflict of Interest

None.

References

1. Rosace, Giuseppe, Emanuela Guido, Claudio Colleoni and Marco Brucale, et al. "Halochromic resorufin-GPTMS hybrid sol-gel: Chemical-physical properties and use as pH sensor fabric coating." Sens Actuators B Chem 241 (2017): 85-95.

Google Scholar, Crossref, Indexed at

2. Wang, Cheng-Cai, Lain-Chuen Juang, Chung-Kung Lee and Ting-Chu Hsu, et al. "Effects of exchanged surfactant cations on the pore structure and adsorption characteristics of montmorillonite." J Colloid Interface Sci 280 (2004): 27-35.

Google Scholar, Crossref, Indexed at

3. Hussain, Abrar, Vitali Podgursky, Dmitri Goljandin and Mart Viljus, et al. "Tribological and mechanical properties investigations of post-consumer cotton textiles." In Solid State Phenomena, Trans Tech Publications Ltd, 320 (2021): 97-102.

Google Scholar, Crossref, Indexed at

4. Abu-Rayash, Azzam, and Ibrahim Dincer. "Analysis of the electricity demand trends amidst the COVID-19 coronavirus pandemic." Energy Res Soc 68 (2020): 101682.

Google Scholar, Crossref, Indexed at

5. Hugh, Gong, Wei, Yuhui, R. Hugh Gong and Lin Ning, et al. "Research on physical properties change and damage behavior of cotton fabrics dried in drum-dryer." J Text Inst 109 (2018): 121-132.

Google Scholar, Crossref, Indexed at