Competitive priorities and supply chain strategy in the fashion industry

Abstract

PurposeThe purpose of this paper is to explore how high‐performing companies in the fashion industry align their supply chain strategy with their competitive priorities.Design/methodology/approachIn order to answer the research question, case study research on four fashion companies most competitive in the global market. The primary sources of information for the case studies were interview data.FindingsBased on in‐depth interviews with top managers at the companies, propositions are reached: the competitive priorities are closely linked with the firm's choice of target market, which in turn determines its supply chain strategy, including both sourcing and channel strategy.Research limitations/implicationsThis paper shows how in‐depth case studies based on interview data about best practices in the fashion industry can contribute to the literature by linking firm's competitive priorities with its supply chain strategy.Practical implicationsThe research outcome enables managers to design their supply chain strategy including sourcing and channel strategy more systematically and effectively so as to be consistent with their competitive priorities.Originality/valueThe research framework is unique in that it combines important concepts and theories in business strategy, outsourcing, and SCM literature. Implications from the in‐depth case studies on best practices in the fashion industry can help managers make a decision on supply chain strategy more effectively.