Strategic Issues and Options for River Island Clothing Limited

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Business Strategy
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Business Strategy 1
“River Island Company Business Analysis”
The purpose of this paper is to enlighten the reader about the company River Island Clothing
Limited and its issues present in the environment. The essay highlights details about the current
position of the company along with three critical problems faced by River Island in the
environment. Further, the paper also evaluate details about the three possible options with the
help of which River Island can easily resolve their issues in the target market. For the purpose of
evaluation of the provided options, SAF framework has been used in the paper. Suitable,
Acceptable and Feasible strategy model clearly analyse the applicability of all the three options
in the business.
River Island is a London based high street fashion brand company that operates its various stores
in the worldwide market. The company was organized in the year 1948 by Bernard Lewis and
his broth in London itself. River Island is a privately owned family company that is owned by
the Lewis family. Further, the company serves a wide variety of women, men and children
clothing, footwear and accessories in the market. River Island is the holding company of Lewis
Trust Group. The company has its total 350 stores in UK, Asia, Ireland, Europe and Middle East
along with six online websites that works in four currencies. The company ships its products to
100 countries worldwide. Further, it should also be noted that the company is known for
providing stylish, affordable and fashionable products to the customers in the target market.
Along with the physical chain stores, the company also efficient make use of online channels to
supply its products in the target market (River Island 2019).
Three strategic issues of the company River Island are discussed below:
Customer Relationship: maintaining solid customer relationship acts as one of the key aspects in
initiating growth of company River Island in the target market. River Island operates its business
functions in worlds most toughest marketplace where they sell stylish branded products as well
as simple affordable products to the customers through supermarket store such as Tesco, and
retail chain stores as well (Geoghegan 2017). Not only these supermarket chain stores hold the
potential to delist the name of the company and shirk it shelf space but also there are various
competitors present in the market that constantly try to reduce the competitive advantage of
River Island in the target market. The company River Island face strategic issue of maintaining a

Business Strategy 2
fixed relationship with its people in the target market. It is important for the organization to
maintain a fixed relationship with the suppliers, customers, supermarkets etc. to grow in the
market. However, the supermarkets constantly try to lower down the price of products of the
company otherwise; they will lower down the sales whereas the competitors try to capture the
customers of the company. Resulting in which, River Island face this constant fear of losing their
customers present in the target market. It has been reported as an issue of customer relationship
management since the company has started trading its products online. Late deliveries and heavy
charges of product have made the organization suffer in terms of sales (Santamaria 2018).
Supply Chain and Investment Risk: As, the fact is known to all that the company has a diversified
market base and established supply chain network as well. River Island work in the global target
market and has spread its business in the global market as well that brings the need of efficient
supply chain facilities for the organization. The company works with a motto to put business on
providing original designs, efficient manufacturing and timely distribution of products to the
customers in market. This result to increase in the need of effective supply chain so that the
business can adequately deliver the products to the customers in the target market through
physical as well as online sales (Woods 2018). The supply chain of River Island is exposed to
potentially adverse events such as physical disruptions, industrial and environmental accidents
that easily impacts on the ability of the company deliver its products to the customers on time.
The customers judge the product through its on time delivery as well.
Thus, it can be said that supply chain activities of a business affects their brand reputation in the
market. Labor issue among River Island like also reduces the satisfaction level of the employees
in the business that subsequently affects the supply chain of the business as well. Further, it
should also be noted that the company has taken various wrong investment decisions that has
affected the supply chain process of the company. The retail market has been tough in past few
years that have affected many organizations. River Island invested its money in strategic
expansion in clothing line due to which the company faced a 7% decrease in the profits in the
year 2018 (Hammett 2018).
Sustainability: It is the biggest strategic issue faced by the company River Island in the global
market. Sustainability is an important aspect for the customers and the company as well but the
diversified functions of the company to earn more revenue sometimes make it difficult for them