Market Analysis

Supply

        The company has a steady supply of the insulated jackets that are being supplied to all the markets that they need to service. There are multiple factors that could cause a shift in a stable supply curve. North Face is feeling a little pressure from the number of sellers that are now present in the market for the same products that they are offering. The insulated jackets from other suppliers are flooding the market with more supply and this will cause the shift in the supply curve to the right side. Competitors that have come into the market with similar products are able to provide a descent quality product at a lower price and this is causing the shift to take place with supply increasing.

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Retrieved at: http://reporting.vfc.com/2014/ 

Overall this factor has led to a shift outward and by increasing the supply it is changing the market requirement. Over the last five years new competitors have not hurt the business, cost of goods sold keeps growing, total revenues keep going up, and overall health of business is steady. The graph is a good way to review how the business is doing with new competitors that are coming up and the old ones too, their jump into the market is not hurting North Face. Supply does see a deep during the different seasons, but it all picks up again during the winter; stating that the weather is a factor in the shift of supply.

Demand

The demand for the product is at a steady level, increasing during weather changes to winter. The size of the customer base can shift the demand curve (Vogt, 2015). The market size is important and the share you hold in it, North Face is a respected supplier of the insulated jacket. Being in the market for so long as grown the consumers at different levels, it is able to supply different outdoor needs. North Face sells their own products through their own stores and online services around the world with consumers ranging from everyone to athletics (thenorthface.com, 2015). This included Climbers, Endurance Runners, Skiers, Snowboarders, and Snow Sports. These consumers would consume the demand of the product depending on their need throughout the seasons. The demand shift for this product would be caused by weather, depending on the seasons and the requirements of the consumer the insulated jacket can see a shift in the demand curve.

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