Structure Conduct Performance (SCP) Framework on Workwear Industry during the Economic Slowdown Scenario

Published: 16 Jun 2009

The workwear market is highly competitive and stable in revenue growth. North American workwear and uniforms market was a growing market and the growth rates were between 5 and 6 percent from 2005 to 2007. However, the scenario has changed in 2008 because of the reduction in work force. The market was worth $10,536.7 million in 2005. Until 2008, the growth rate was nominal at 5.0 percent. The market reached the revenues of $11,667.7 in 2008. To overcome the slowdown and competition, the companies should focus on differentiating themselves with new product offers and combination of innovative service offers. The companies can try and utilize the SCP framework to analyse the conditions and change their business conduct to survive in this economic slowdown scenario.

Frost & Sullivan done the structure conduct and performance analysis for the overall workwear industry and the outcome is as follows.

This framework begins from industry structure and business conduct, and finally business conduct determines the performance. As far as the SCP is concerned, 70% of the differences in profitability across the industries are based on the structural features of those industries. It gives the direction in which the companies should think and prepare for uncertainties. It is essential to understand how companies in the workwear industry conduct themselves in the market place during the economic slowdown. The companies may get many questions such as,

  • How to penetrate the market?
  • How to introduce any new product or service?
  • How to change the existing offers in more attractive way?
  • How to retain their existing customers?
  • What are their plans to increase the customer base?
  • Can they reach out to new channels for growth?

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