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Essay on John Lewis Analysis

   

Added on  2020-12-30

15 Pages4590 Words132 Views
‘Industry analysis and possibleadaptations’

Table of ContentsINTRODUCTION ..........................................................................................................................3a) Use the Porter’s 5 Forces model to identify and analyse the current environmentalinfluences on the Apparel Retailers sub-sector within the UK economy...................................3b) Use the Value Chain model to analyse the internal business environment of a firm in theApparel Retailers sub-sector within the UK. .............................................................................5c) Explain appropriate adaptations that your selected firm could undertake in response to theexternal business environmental forces......................................................................................7d) Reflect on the usefulness of the Porter’s 5 Forces model in understanding the businessenvironment and describe its potential limitations......................................................................9CONCLUSION..............................................................................................................................10REFERENCES .............................................................................................................................11

INTRODUCTIONIndustry analysis has become necessary to know the future scope and development forbetter customer satisfaction and business advantage. Along with analysis, possible adaptationsare also required to make industry more reflective and attractive (Debrah, 2013). Possibleadaptations such as pure and advance IT system, usage of artificial intelligence, skilledworkforce & resources etc. has raised the scope of apparel retail business. This essay will becarried on John Lewis which is the leading multi-retailer in an appraisal sub-sector workingwithin the UK economy. This company has to gain their customer trusts and belief by addingvalue addition and customer experience in products & services. This assessment will put light onporter's 5 forces model to identify and analyse the various current environmental factors on theapparel retailers along with the value chain model to be analyse regarding the internalenvironment of the business. This essay will also tell about the appropriate adaptations forraising the business opportunity. Along with this, there will be discussion about the businessexpectancy in the future. a) Use the Porter’s 5 Forces model to identify and analyse the current environmentalinfluences on the Apparel Retailers sub-sector within the UK economy.Apparel retailers’ sub-sectors has become competitive and challenging from past periodof time. Such model is necessary to receive valuable inputs about the competition and criticalmarket issue at the higher level. In the UK economy, apparel retail sector has grown over theperiod of time with contributing to the market share and long term growth for raising the futurepotential scope for fashion industry development. There are various factors such asenvironment, political, technological etc. which has put emphasis on the apparel retail sub-sectorto co-relate with other growing sector and industry (Budhwar, 2015). In context with JohnLewis, apparel segment of this company has grown and raise at both domestic and global level.On domestic level, apparel retail sector has grown largely with value addition to the buyer’sneeds and wants. United Kingdom market has grown with an involvement of numerousindustries such as apparels, food, transportation and logistics etc. In this assessment, there will beanalysis of current environment influences on the apparel retailer sub-sectors in the entire UKscenario. To analyse the environmental factors, it will be beneficial to understand the Porter'sfive force model to analyse the environmental factor required to analyse the influence on the

prospective customer along with an entire business support system of the United Kingdom.Porter's five force model is an approach to determine how competitive the market is and how itwill be profitable for the business. In context with UK market, where apparel sector has grown atthe larger sector, this model will help John lewis to identify what all sort of environmentalfactors such as cultural , economic, technological, political, demographic, regulatory etc. whichhave put positive and negative effect on the sale and production of their goods & services. Themajor aim and objective of this model is to know the competitive advantage of an industry ontothe business of the John Lewis and apparel based products or services. This model will helpdifferent business in getting advantage of an existing resources or acquiring the new one togenerate the business for the John lewis apparel products. Along with this, porter's five force willhelp top recover the political, economical and technological impact on the business operations.This model framework has five factors explained here. Buyer power which shows the buyer's ability to lower down the price they used to pay.Supplier power enables the potential of suppliers to increase the cost of their products orservice. Competitive rivalries shows the magnitude of competitive activity which may affecthow much business the company have received till now or what will be margin level to the sellerThreat of new entrants tells about the risk or burden which is possess by new entrants in amarket. Substitution shows the threat possess by possibility of substituting a product or servicein one market with other product. The apparel retail industry of the UK has been valued as 70 billion pound with the priceset on average basis of 19 pound per product. This assessment will attempt to analyse the presentenvironmental factors influences on an apparel sub-sectors within the UK industry. An analysisis as follow: Bargaining power of buyers says that environmental factors such as demographic,culture etc. have played an important role in influencing the buyers’ decision making and theirtaste and preferences for apparel products. This is an important part of Porter's five force modelwhich has put the pressure to decrease the prices of the commodities or power to switch otherbrand/suppliers. Demographic has demonstrated the choice and preference of different customerat one point or during process of purchasing. In case of John Lewis apparel sector, buyer poweris associated with price/affordability to buy the products. Culture differences has played thenecessary role to counter that power.Such power has made buyer to shop for apparel and little

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