HIGH STREET FASHION FOR BOYS

High Street Fashion for boys

HIGH STREET FASHION FOR BOYS

Introduction

Next is one of UK's leading retailers of clothes, for the young generation it has a record of success and profitability since its establishment with well known reputation for its innovative, quality products and reasonable price which offers customers value for their money. NEXT sales and services been declined in mid to late 1990s. The purpose of this report to identify the key drivers that made NEXT falls in their performance.

The external environment scanning is concerned with the forces and factors that impact upon Next. However, when analysing those forces and factors will assist NEXT in identifying the change in the environment, is often referred to as the macro-environment, planning in how to cope with such a change, and being ahead of the competitors in the adaptation to the new environment and the response to the market demands. PESTEL framework and Porters Five Forces model are the techniques that author uses to identify and analyse the problems that NEXT experienced in the mid to late 90's. Then the scribe carries out an internal investigation of the organisation's resources and competences. Resource audit, value chain and SWOT analysis are the techniques to examine the activity of the NEXTin order to reveal what was the basis of their competitive advantage. Furthermore, the author uses the cultural web analysis in order to identify what were the main cultural features of NEXTuntil the mid 90's. And talks about were the resistance to heritage change began and what aspects need to be changed. Finally the author identifies and evaluates the strategic choices available to NEXTby using BCG matrix, Strategy Clock and Ansoff model techniques. A brief conclusion and recommendations for the strategy of NEXT for the next 3 years will follow.

EXTERNAL MACRO-ENVIRONMENT

PESTEL Analysis

Fahey and Narayanan (1986) contend "that macro-environmental conditions set the basic context in which commerce function" (Fahey and Narayanan, 1986). The Political, Economic, Social, Technological, Environmental, Legal (PESTEL) framework shall be used in order to identify the changes in the external environment that caused decline in the NEXTperformance in the mid to late 1990's.

Political

European managing group conclusion to allow free flow of trade among themselves and other nations under foreign trade guidelines makes companies to trade their products over time simpler than before. NEXTcompetitors took advantage of its higher cost structure and bit off some its market share. The most important is what is underneath them: a good-hearted person or not; a smart and clever one or dumb and fool; open minded or selfish.

Economic

NEXTcompetitors are specialised in niche markets and consumers' focus which make them to provide a much better consumers satisfaction. They prefer to import their products from abroad for cost savings, this fact puts NEXTin a cost disadvantage for a perceived "higher quality".

Social

Consumers' concept in the marketplace has altered; they do not sense British goods as of high quality. There is a move in demand for more trendy clothing. Moreover the price sensitivity of the majority of the consumers has ...