Analysing The Competitive Environment - River island
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Added on 2020-10-23
Analysing The Competitive Environment - River island
Added on 2020-10-23
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REPORT based on companyRIVER ISLAND
Table of ContentsINTRODUCTION...........................................................................................................................3Company's background...............................................................................................................3PEST Analysis............................................................................................................................4Analysing the competitive environment ....................................................................................5Analyse the two primary and support activities in porter's value chain and strength andweakness River island.................................................................................................................7Summarise and reflect how business can deploy IT and use innovative ideas to improvebusiness processes to enhance competitive positioning..............................................................9CONCLUSION .............................................................................................................................10REFERENCES .............................................................................................................................12
INTRODUCTIONCompany's backgroundInformation technology is becoming an integral part of every organization around theworld (Gielens and Steenkamp, 2019). Companies are becoming more computerised in itsoperations which is visible in its CRM, billing system, integrated management informationsystem etc. The present report is going to discuss the role of IT play in River island , a Fashionretailer based in United Kingdom.River island is one of the biggest Fashion retailer chain in UK. It is headquartered inLondon, England in United Kingdom. The company is a private traded company and its deals infashion, clothing, Textiles and retail sector. The company enjoys a tremendous strength ofhuman capital with more 165000 dedicated employees. It has around 635 stores in UnitedKingdom in the year 2018. The firm reported a net income of £944.5m (December 2017).Business strategy of River island : The company has always focussed on providing lowcost products and services with supreme quality. This is reflected from its forever slogan thatsays “Save money. Live Better”. The company focuses on its customers and its strategiesrevolves around customer satisfaction. Currently, the organization is laying its emphasis onimproving and enhancing its brand equity and customer loyalty (Hanlon, 2019). The companyalso focuses on employing the latest technology in its operations for ensuring higher productionthrough economies of scale could be achieved. The entity is channelising its efforts towards enhancing customer's in-store experience bymaking the stores highly attractive, making its employees highly trained regarding how they canmake its customers fully satisfied. Also, the firm is continuously working towards marketing andpromoting its brand on digital media like Facebook, Instagram, Twitter etc. It also has a onlinewebsite that explains the existence of the company, its IT department constantly work onproviding easy to use Interface for the users. Products and services of River island : It offers Fashion products such as retail fooditems, apparel, furnishing products. The River island 's stores provides fresh meat, frozen foodproducts, bakery items manufactured by itself in the premises, clothing for men, women and
kids. The company also offers gardening supplies, toys, stationary, toys, greeting cards, gifts.Some of the stores of the organization also renders petrol to the customers (Hartmann, A., 2019).The enterprise deals in telecommunication sector and offers network services to thepeople by the name of River island Mobile. The financial services' division of the companyoffers car insurance, credit cards, travel money beaurax by the name of River island Money.These financial products and services are sold through online medium or through telephones,these are not directly sold in its supermarket stores. River island distributes its product andservices through its 25 distribution centres across the country through which the goods arereached to its stores at different locations. PEST AnalysisThis analyses the external macro-environmental factors that affects the functioning andoperations of all firms in a industry (Hoveskog, Halila and Olofsson, 2019). The model consistof four component that are mentioned below:Political factors : EU regulations, international trade regulations, directives, stability ofgovernment, war like situations are some factors that affects the firms in the country ( Kan,Chung and Chung, 2019). For example, country's liberal trade policies have positively affectedthe business of the supermarket retailer by which it has started its operations in Chinese market.However, instability in government, strict and restrictive trade policies, war likesituations could adversely affect the functioning and profitability of consumer goods industry. Economic factors: Economic growth rate, unemployment rate, interest rates, exchangerates affects the trade of an industry in the country. High fluctuations in the exchange rates couldhamper the stability in the earnings of the supermarket industry (Maity and Ganguly, 2019).Similarly, growing economy would favour the business of supermarket retailer because of therise in the purchase power of consumers, people can afford more lifestyle products. Social factors: Changing preferences of customers, ethnicity, education level etc., aresome factors that affects the operations of supermarket industry in UK. River island getsaffected by the constantly changing preferences of the customers (Moons, Waeyenbergh andPintelon, 2019). For example, due to behaviour of getting informed about the products andservices, an increased demand has been generated for the organic and nutritious products.Technological factors: The level of technological advancement a country or industrypossesses. For remaining competitive in the industry, River island have to make sure that it
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