Essay on Lbs Textiles Case Study

2049 Words Oct 20th, 2012 9 Pages
LBS Textiles Case Study

LBS Textile Overview:
LBS Textiles is a firm that designs fabrics for wholesale markets in North-East America. The company has experienced a modest growth over the last three years.
LBS Textiles operates on a 300 node network system running Windows and have 400 people working on them. The firm operates on its homegrown distribution and accounting system that runs on legacy systems. It is assumed LBS Textiles has proprietary fabric designs that are used by the weaving plants to create products, which attract all demographics in the Northeast America.
Current Challenges in the market:
The following challenges lurking round LBS Textiles manifest threat of existence.
The price discounts offered by the weaving
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It necessitates the setup of Virtual offices and provision of latest wireless and telephone technologies to the field agents. Management should be acquainted with the culture and behavior of people, locations with geographical advantage for business establishment, infrastructure and amenities available in the region before setting up offices. This research would incur travelling and other miscellaneous expenses.
Evaluation of feasibility of business:
A careful analysis of the market is essential to analyze the competition in the market. There are other competitive forces that also need to be taken into consideration other than the direct competitors. Porter’s Five Forces shows the various forces that affect competitive rivalry. The survival and flourishing of LBS Textiles depends on how effectively these forces can be tackled.
Threat of New Entries: The scope of new fabric designers entering the competition is very high. Patenting and frequent development of new designs is the solution to overcome this. LBS Textiles needs to invest in R&D to develop advanced products that would help them stay ahead of the curve. The expenses could range up to $3 million. LBS Textiles has currently 400 employees with some of them having expertise in the products and the business, but lack expertise in new technologies. New hires with expertise in field are necessary, that can leverage the expertise of the current experts to

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