STRATEGY ASSIGNMENT: NEXT PLC

Strategy Assignment: Next Plc

Next Plc (Clothing Industry)

Introduction Of Next

Next PLC is a retailer based in the United Kingdom. It offers customers clothing and accessories for men, women and children and a complete selection of home goods. The company distributes merchandise in three ways. The first is through its chain of over 500 stores in the UK and Erie. The second is through Next Directory, the catalog and website. Next Directory has almost 3 million active customers. The third distribution channel is Next International. This is the network of over 180 stores present in continental Europe, Russia, Scandinavia, India, Japan and the Middle East. Next International also includes the international websites that are able to serve 30 countries around the world. There are three other businesses in the Next group. The first is Next Sourcing, a designer, marketer and buyer of Next brand products. Lipsy is a designer and seller of clothing for young women. Ventura is a customer service management company. Next PLC is present on the London Stock Exchange under the symbol NXT.L. It is also a part of the FTSE 100 Index. It is headquartered in Enderby near Leicester, England. Next has history dating back to 1864, though the Next brand did not get established until 1982. (Global Markets Direct, 2010)

Explanation of Strategy

Next's innovative shopping concept has performed extremely well in the UK market, becoming one of the go-to names on the British high street. Its determination to provide economical and mid-market price points, as well as fashionable styles, has garnered a strong following. Next's history as a catalogue company created a strong base to steadily develop internet sales. Moving forward, Next plans to remain a contemporary company, increasing its online offerings with a stronger focus on Next's Baby Boutique and designer branded fashion. (Brendan, 2010)

Major Products and Services

Next Plc (Next or "the company") offers the following key products: Products

Clothing for men, women and children

Footwear

Accessories

Homeware products

Electrical products

Flowers

Gifts

Brands

NEXT

Lipsy

1. Next's Strategic Position

Next Plc ranks number two in apparel in the UK in 2010 with 5% of value sales, therefore holds a leading position the UK clothing market. In footwear, Next ranks number five with a 3% value share. In men's and women's outerwear it ranks two and three, with 5% and 6% of value sales, respectively, in 2010. Next has established itself as a reasonably-priced fashion brand on the British high street and as a result, its share has steadily increased year on year. (Brian, 2000)

Next Plc has grown steadily in the childrenswear market, ranks number two with a 9% valuet share in 2010. Next benefited from the collapse of two other significant childrenswear competitors, Woolworths and Adams, and as a result, Next has picked up business.

Next offers an increasingly wide range of men's and women's outerwear, which is largely promoted in its hardback book catalogues and online site. The spring 2011 catalogue contains about 1,400 pages of extensive collections to ...