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The thesis explores how the Danish fashion industry can improve its competitive power on the North-German market: First, the North-German market is analysed, using PEST and Porter s Five Forces. The competitive situation is sound and the Germans show a growing interest for Danish fashion. The market offers one of the highest purchasing power parities in the country and an increasing demand for medium-priced clothing. Second, Robert M. Grant s framework for analysing internal resources and capabilities is applied. The data illustrates that the fashion companies are similar; they have low marketing budgets and their key strengths are brand profiles and design. Third, Bettis and Prahalad s theory: The Dominant Logic uncovers how the three identified dominant logics affect the Danish fashion industry: the one-way communication strategy, a lack of web-shops and missing co-operation internally in the industry. The keyword to success is co-operation within the fashion field. Four identified issues will improve the industry s competitive power: understanding the German culture, co-operation within the industry, innovation of both the communication strategy and the online appearance.