Balancing a fine line in an environment of change
A Coats Viyella case study

Page 1: Introduction

Many of the goods we use in our everyday lives are based on “threads.” For example, the room in which you are sitting whilst reading this may have a carpet and curtains. Without doubt the people surrounding you will be wearing a variety of clothes – some of which will be exotic and original, others will be more conformist. A large assortment of fibres and filaments that form...
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Page 2: The external environment

The textile industry has been characterised by keen international competition ever since the days of mass production in factories. Increasingly this competition is being intensified as global markets are exposed to free competition. In this respect, one of the most significant changes is the phasing out of the Multi-Fibre Agreement, as textiles and clothing are integrated into the General...
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Page 3: Value chain

A value chain shows all the stages involved in adding value to a product and the links between these stages. The stronger the chain, the more value that will be added in the process of production. This chain is the key to gaining competitive advantage.The textiles and clothing industry involves a complex value chain. For example, there is a set of processes which develop between actually picking...
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Page 4: Objectives

The first and largest division is Industrial Sewing Thread in which Coats is the world leader with over 20% share of the world market. Industrial sewing thread largely goes to garment makers. But there are some other important users, for example, the shoe industry and an important growth area is the automotive industry, where Coats is currently involved in developing the appropriate sewing threads...
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Page 5: Quality management

Coats Viyella believes that there are three bases for competition - Quality, Service and Value.“Quality management” requires clear identification of customers and their needs and meeting these needs with products and services which conform with the customers’ requirements or are “fit for purpose”. Coats’ effective and extensive product range is the foundation...
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Page 6: Conclusion

To conclude the case study it is helpful to identify some further opportunities which will help to enhance Coats’ performance and thus add further momentum to the value chain. In particular, Coats believes that there are opportunities for growth in certain geographic areas: in India, China and Eastern Europe - each with their own challenge. The key drives for these markets is the growth in...
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Related: Travis Perkins
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