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Digital Challenges for the Small and Medium Enterprises of the Textile and Clothing Industry in Portugal


  • Carlos Osório

    () (Departamento de Gestão e Economia, Universidade da Beira Interior)

  • João Leitão

    () (Departamento de Gestão e Economia, Universidade da Beira Interior)


Nowadays of increasing functioning of network competitors, the Portuguese Small and Medium Enterprises (SME) of the Textile and Clothing Industry are facing new digital challenges. In order to strengthen their market power and reduce their dependence on foreign subcontractors, they need to create a brand image. Within this new digital and interactive context, they must interact with their consumers and take full advantage of the opportunities provided by new communication and media networks, by implementing Intranets and Extranets as privileged systems of external communication with clients, suppliers, and partners in a competitive environment. This essay analyses the competitive advantages and TOWS Matrix's Model is used for tracing dominant strategic alternatives and convenient recommendations for managers and public administrators taking into consideration the operating changes in the new economic platform, namely Internet. The Portuguese Government is committed to encouraging entrepreneurship and acts as a unifying agent, working with SME to pursue the creation of a selective set of Portuguese brands, which might better, represent products labelled "Made in Portugal". Furthermore, the Textile and Clothing Industry should be promoted using incentives to encourage SME production, and especially where innovative products are concerned, in connection with the main suppliers of raw materials, in order to encourage Cluster Networks and Technological Poles. Also relations should be encouraged by the construction of a vertical chain sheltered by a selective set of Portuguese brands supported and promoted by responsible national agents. This is a sine qua non condition to create an International Store Chain, which could offer the SME products the needed visibility.

Suggested Citation

  • Carlos Osório & João Leitão, 2001. "Digital Challenges for the Small and Medium Enterprises of the Textile and Clothing Industry in Portugal," Working Papers de Gestão, Economia e Marketing (Management, Economics and Marketing Working Papers) 9/2001, Universidade da Beira Interior, Departamento de Gestão e Economia (Portugal).
  • Handle: RePEc:csh:wpecon:9/2001

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    References listed on IDEAS

    1. Davidson, Carl & Deneckere, Raymond J, 1990. "Excess Capacity and Collusion," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(3), pages 521-541, August.
    2. Faruk Gul, 1987. "Noncooperative Collusion in Durable Goods Oligopoly," RAND Journal of Economics, The RAND Corporation, vol. 18(2), pages 248-254, Summer.
    3. Wang, Ruqu, 2001. "Optimal pricing strategy for durable-goods monopoly," Journal of Economic Dynamics and Control, Elsevier, vol. 25(5), pages 789-804, May.
    4. Driskill, Robert, 2001. "Durable goods oligopoly," International Journal of Industrial Organization, Elsevier, vol. 19(3-4), pages 391-413, March.
    5. Bulow, Jeremy I, 1982. "Durable-Goods Monopolists," Journal of Political Economy, University of Chicago Press, vol. 90(2), pages 314-332, April.
    6. Karp, Larry, 1996. "Depreciation erodes the Coase Conjecture," European Economic Review, Elsevier, vol. 40(2), pages 473-490, February.
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    More about this item


    Strategic Planning; Textile and Clothing; TOWS Matrix;

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising


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