Strategic analysis of textile manufacturing industry : case of Croatia

Abstract

The textile manufacturing industry in Croatia has set its foundations during the existence of Yugoslavia, and was then one of the most successful industries in Croatia. Marked by a large number of employees, the majority of women with secondary school education, it was an industry in which has operated a small number of large companies with many employees. Croatian textile manufacturing industry still has the major role in Croatian economy. Despite many changes and difficulties caused by the reduction of the market, the industry has maintained a very important place in the Croatian economy. The position of the textile manufacturing industry is very complex, given the economic, but also the global situation. Thus, the main goal of this paper is to analyze the textile manufacturing industry on the sample of Croatian manufacturing firms. The aim was to define the importance of the textile industry in Croatia using Porter's model of five competitive forces, and also to determine the key segments needed for success and further development of the textile industry. Furthermore, the analysis will give us a clear insight into the economic aspects of the textile industry and all of the factors and forces that have the influence on the industry development and all the opportunities and threats that work in this industry. The result showed that the textile industry in Croatia is threatening further strengthening power of suppliers and buyers, unless there is a connection and association of enterprises. Great threat whose intensity enhances is the entry of new competitors, both domestic and large competitors from foreign markets.