Founded by three brothers, Mahesh, Sharad and Ajay Amalean, in 1987, MAS Holdings Ltds one-year turnover of over US 1 billion makes them South Asias largest dress maker. Their purposes are to present solutions across the value concatenation making an award winning amalgamation of design, fabrication, research, and invention in their operations globally.
MAS are the lead spouse for Victoria ‘s Secret, and are besides partnered with other big planetary trade names including NIKE, M & A ; S, Speedo and Triumph International. MAS besides provide Information Technology ( IT ) & A ; Systems Applications and Products ( SAP ) related solutions to other vesture makers worldwide.
Their planetary traffics incorporate 28 universe category fabrication installations and design studios lead by their extremely skilled international squad of over 55,000 people. MAS claim to be committed to sustainable and ethical patterns. They are an equal chance employer, distinguished by their dedication to sustainable and advanced dress solutions, purportedly puting Sri Lanka as the first finish for ethically right vesture.
MAS list of good respected and top branded spouses, who are leaders of their single Fieldss guarantee that MAS holds a cardinal place in the vesture industry. By working in a tight brotherhood with these spouses ensures that their client ‘s of professional universe category merchandises.
MAS besides hold a great trade of pride in their equal rights for adult females in Sri Lanka and their on-going preparation leting for accomplishments addition and betterment and finally advancement chances within the administration ‘s ranks. Sing that the bulk of their work force comprises of adult females and with a changeless flow of possible labor “ new-comers ” strike harding at the door, MAS have no deficit of skilled laborers to guarantee the high criterion of quality and production degrees their clients have come to anticipate.
Tax additions on imported cloths and natural stuffs.
Possibility of Generalized System of Preferential ( GSP+ ) revenue enhancement.
Additions in labor installations and wages.
Manufacturing orders diminishing due to a planetary economic crisis.
Income degree addition for Sri Lankan work forces.
Rupee fluctuation versus the US dollar making uncertainness in measuring merchandises.
Bank involvement rates diminishing for new investings.
Peoples ‘s involvement and manner tendencies increasing through consciousness.
Concerns about protection socially and environmentally.
Low cost labor from both northern and eastern states of Sri Lanka.
Sri Lankan society ordering skilled female workers leave their occupations after matrimony.
Technological promotion supplying machines that produce better quality merchandises at a decreased cost due to less waste and reduced demand for human labor.
ICT supplying faster communicating across boundary lines and an addition in publicizing assisting to pull off retail connexions.
Regulation alterations within the industry.
More conformity required for the Acts of industry.
Wastage decrease jobs.
Environmental force per unit area groups ( e.g. Green Peace ) puting demands for companies to cut down nursery gasses.
Excellent staff that are extremely trained.
Strong relationships with providers.
In depth Industry experience and cognition.
Low labor costs.
Less staff turnover compared to other states.
Lack of cognition in local market scenario.
Business-wear is a new section for the company.
MAS Holdings ‘ mark population ‘s deficiency of consciousness for the trade name.
Chiefly dependent on confidant and insouciant wear.
Rapid growing in mark client section.
Changes in people ‘s penetration to be more stylish.
Limited stylish business-wear trade names.
Already established competition and their market portion.
Additions in natural stuffs and transportation costs.
Buyers seeking alternate makers.
Civil agitation in Sri Lanka
Sri Lankan Market Economics
Because of the economic downswing, market demand for the merchandises that MAS industry is reduced. The purchasing power of purchasers in Europe and US is besides decreased. But people ‘s income degrees in Sri Lanka are somewhat increased because of the current peace in Sri Lanka. This is proven by the economic statistics provided by XE.COM ( see Image 1 ) . Fashion tendencies are being noticed more and this is increasing peoples disbursement.
Image 1 ( XE.COM, 2012 )
Global economic science is besides playing a big portion in forcing other states to buy from cheaper beginnings. The Central Bank of Sri Lanka ( CBSL ) reported in 2011 that “ improved mentality for the domestic economic system coupled with lower international involvement rates helped pull higher foreign influxs ” ( Central Bank of Sri Lanka, 2011 ) .
Customers and Rivals
International clients demand high quality merchandises. Supplying that sort of quality and service is reasonably expensive. Even local clients expect high quality points but true non comparable with high street clients. Local clients will usually shop around looking for value for money, comfort, lastingness and recognised trade names.
Their chief rivals are from China. New-comers to the industry besides try to undersell MAS monetary values to try a market portion coup d’etat, doing them high hazard rivals. Local good established rivals in Sri Lanka besides have their ain sets ( e.g. Crystal Martin Garments ( Pvt ) Ltd, Jay Jay Mills Lanka ( Pvt ) Ltd, Brandix Lanka Limited, etc ) .
Distribution and Selling
MAS do non presently use or need distribution traders or marketing methods as they deal straight with other concerns doing them a B2B administration. This, nevertheless, does intend the high street clients do non recognize their trade name, merely the trade name of the companies MAS industry for.
Mas have been runing for over 20 old ages in Sri Lanka doing them a moderately good established administration in that clime. They have purposes to establish a new vesture trade name which will be targeted at the local market. This will intend that their selling techniques will be cardinal in the development of this new trade name with the demand to make merchandise and trade name consciousness and, hopefully, bring forth client growing.
The administration exhibits marks that they have information pertaining to the markets they have targeted and captive to aim in the hereafter. They have a proved path record of extended cognition towards the common properties of their prized and loyal clients. Their current mark markets include insouciant wear, confidant wear and office wear.
MAS province that they are non merely a concern but are alternatively a manner of life and this may so be true. They have put in topographic point many back uping enterprises to help staff in achieving growing non merely within the concern but within them excessively. With internships offering industrial preparation, summer internships and an award for the best overall pupil they help to lure people to fall in their work force safe in the cognition that this company does so look after its employees.
With the bulk of their work force comprising of adult females MAS have besides introduced a strategy called “ Women go Beyond ” which empowers their female staff with a work/life balance, development in their accomplishments and cognition and the opportunities career promotion. This was confirmed in a presentation made by Deshamanya Mahesh Amalean, Chairman of MAS Holdings to the United Nations, when he said “ MAS believes in authorization, non because the universe demands it, but because MAS demands it from itself, and it ‘s the right thing to make ” ( Amalean, 2011 ) . The company stands in good position to harvest the wagess from a loyal work force who have a batch to derive from turn outing their worth to the administration as a whole.
Demographics, Geography and Behaviour Factors
MAS clients comprise typically of these types of profiles:
Urban inhabitants, where high degrees of population are, with high income degrees.
Widest insouciant wear targeted age scope chiefly between 14 and 30.
Office wear chiefly comprise of adult females between the ages of 20 to 40 and intimate wear besides aimed largely at adult females aged 18 to 40.
Their targeted clients normally are alumnuss or in higher instruction, estimated at around 95 % of their client base over the age of 20.
Their clients are regular followings of manner tendencies.
Expendable incomes for disbursement on voguish vesture as depicted in the graph and chart below.
US $ Millions
A 2009A A A A A A
US $ Millions
A 2009A A A A A A
( Sri Lanka Apparel Exporters Association ( SLAEA ) , 2011 ) , Table 1
Export Performance Export Growth
( Chart 1 ) ( Chart 2 )
Summary and Critical Review
MAS do take to run into all their client demands by mass bring forthing exceptionally high quality merchandises. Their high street connexions enable them to make high terminal purchasers. They have an IT system in topographic point to mensurate the profitableness of all orders made yearly ( normally used but extremely necessary in this industry due to changeless external menaces from rivals and lifting costs ) .
They are under changeless menace from both local and foreign rivals who seek non merely to muscle in on usage but to really undersell them throughout their planetary market. They may in some ways be undervaluing their rivals that they need a more up to day of the month direction scheme to guarantee that they keep abreast of these menaces.
Ma monetary values are non based on internal determinations but are alternatively decided upon by their purchasers foremost. Their belief is strong in allowing clients play a major function in the leading of the administrations determination doing procedure. “ Firms progressively rely on relational selling tactics to increase client backing with the house, ( Ashley, et al. , 2011 ) houses have a heightened involvement in factors that affect client battle in relationship selling attempts ” .
The term clients, in the sense of MAS clients, should be clearly stated as Business to Business ( B2B ) clients. They do non cover straight with high street clients ; they alternatively cover to dressing trade names, such as Nike, who so sell their merchandises in high street shops worldwide. For them, one would hold, this is extremely advantageous. MAS do non necessitate to worry about selling to the universe ‘s single consumers, merely to the high street branded administrations. This means they do non necessitate to add the cost of operating expenses and premises rental on high street stores to sell their goods maintaining their costs low and net incomes high.
From what one can infer, their market needs ballad in the industry of high quality voguish manner designs to run into client invariably altering demands. Their tendencies thin towards increased choice driven by their current and of all time turning competition in the dress market. Consumers are spoilt for pick when makers around the universe and within Sri Lanka compete so fiercely for their usage.
The cyberspace has meant that clients can beginning providers rapidly and easy without the demand to go forth their places, doing it a precedence for MAS to maintain on top of presently technological progresss and seek to remain in front of their competition. MAS ‘ ability to force towards technological solutions helps to guarantee that they can supervise in existent clip how their merchandises are comparing to the challengers, path alterations in tendencies and receive orders immediately.
In one ‘s sentiment, MAS base in good position for the minute within the Apparel industry. They have the advantage of location as Sri Lanka has the perfect clime for turning the natural stuffs ( i.e. cotton ) needed in the industry of fabric. Their labor costs are low and the work force is high. The work forces they employ are invariably kept up-to-date through preparation covered by the administration guaranting they ne’er fall behind their rivals. Their rivals are, nevertheless, in similar state of affairss and can in some instances afford to bring forth challenges by underselling or offer larger measures to shorter deadlines ( in the instance of China ) .
One can merely presume that in clip the Tiger economic system, comprising of Indonesia, Singapore, Malaysia, Thailand, South Korea and China, will wholly rule the fabric market coercing the little island of Sri Lanka to either submit licking or articulation ranks. The result of this can merely be guessed, but one can merely trust that the cost of being trendy will non flip projectile if this were to go on.
Due to the political instability in Sri Lanka one would implore to do the suggestion for MAS to look towards going a Multi-National Enterprise ( MNE ) . This would guarantee that the administration is protected from the political menace within the state it is presently based. MAS may lose their clients if the political state of affairs becomes excessively unstable. Even if the state of affairs begins to better in clip, and should MAS hold survived the catastrophe, their client base could be harmfully harmed because they will be highly hesitating about subscribing any contracts with MAS.
The jobs face by MAS for this type of venture is seeking to beginning similar priced natural stuffs and labor in other states so as to maintain their monetary value and production promises to their bing patronage. There is one manner of accomplishing this! By seeking a amalgamation with one of MAS bing rivals, in China for illustration, they may non merely procure the on-going being of their administration and clients, but besides gain clients in the merge, take a competitory menace and become stronger through the turning economic strength that China has.