The strategic position and potential opportunities and threats of Essay

The strategic position and potential opportunities and threats of TOPSHOP in the future - Essay Example The brand has also launched its own websites through which customers in USA gets an opportunity to shop. The website is updated 5 times a week and with over 300 styles (Topshop, n.d). Environmental analysis The environmental analysis is done with the help of PEST analysis. This tool helps in detecting the trend of the environment which can become issues in the competitive environment (Henry, 2008, p.51). Political factors The countries political factor in terms of clothing has been shaped by the international trading agreement. But the rules on trade remains complicated and changes rapidly. The trade blocks and trade agreements maintains distortions to free trade, which has resulted in rise in the Chinese exports and a drop in prices for UK consumers (Allwood et.al, 2006, p.8). Economical factors Economical factors have an adverse affect over the industry. ... Social factors The social factors affecting the retail clothing industry includes the age range of buyers which helps the retailer to determine what kinds of product to offer. Topshop has targeted the students and thus they produce fashionable clothing. The disposable income creates an impact on the buying behaviour of the consumers. The buying habits of the consumers are also a matter of concern as the retail outlets needs to match up with the consumers taste and demands. Technological factors With the help of technological factors the retail industry are able to cut down cost, enhance sales and can access customer information by way of bar coding and scanning, by using LAN, utilising the point of sales terminals. The distribution of the products will be done electronically enabling reduction of price due to product supply lines (Wilson, 2001, p.7). Porter’s Five Force Model Porters five force model focuses on five forces that shape the industry. The forces includes bargainin g power of buyer, bargaining power of supplier, threat of new entrant, threat of substitute, and rivalry among the firms. (Refer Appendix A). Bargaining power of supplier The bargaining power of supplier in retail clothing industry would be high because there are many buyers but few dominant suppliers. Topshop clothing is usually designed by fashion designer thus making the bargaining power high. Bargaining power of buyers In a retail clothing industry the bargaining power of the buyers are high because they can easily switch from one brand to another as they have a wide range of options available in the market. Topshop produces fashionable clothing and accessories which are easily available as the product are standardised with other brands thus

Corporate Strategy Assignment Example | Topics and Well Written Essays - 2500 words - 2

Corporate Strategy - Assignment Example organisation has a worldwide network and international presence, a strategy that enable it to earn a substantive share of the market in the most competitive markets like the USA, UK and China. Dyson’s success can be attributed to the exceptional and robust strategic abilities that boost its competitive edge. The company corporate strategies can be analysing through investigating its current position in terms of environment and competitors, as well as its strategic options. Political: Dyson Company is a UK appliances manufacturer. The raising of funds in UK is not usually easy because the rates of interest that has been high. Fortunately for the company has been able to sign a deal with a Japanese company, which led to it invest in R & D. Dyson Company requires a considerably huge amount of money to engage in R & D. The organization does certainly not receive considerable favour from UK governing bodies; it was, nevertheless, bold enough to come up with startling innovations that have startled the industry (Hollensen, 2007). Economic: the contemporary market situation does not offer favourable conditions to any industry to expand its business, mostly for those that relate directly to consumers. There has been an unfavourable demand of the vacuum cleaner manufacturers in Wiltshire, and hence the organization has to close down its manufacturing plant. Dyson Company is considering relocating its vacuum cleaner manufacturing firm to the Far East where the cost of labour is relatively cheaper (Hollensen, 2007). The company presently have 1150 human resource that still work in its factory despite the layoff. According to research the market share of the company by volume, has gone down 25% over the past five years. Social: The critical factor that attributed to company success in the vacuum cleaner industry is the ability to mollify the apparently shifting demand. A burdensome aspect for many organizations in the vacuum cleaner sector has been tracking the tastes,