Industry Analysis and Possible Adaptations - Assignment
Added on 2020-10-22
13 Pages3751 Words473 Views
INDUSTRY ANALYSIS ANDPOSSIBLE ADAPTATIONS
Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3a. Uses of Porter's 5 forces model in identification and analysing of the current environmentalinfluences in context of Arcadia within UK economy................................................................3b. The usage of value chain to analyse the internal business environment of Arcadia in UnitedKingdom within the apparel retailer sub sector..........................................................................6c. The appropriate adaptations Arcadia can undertake in response to the external forces ofenvironment.................................................................................................................................7d. The usefulness of Porter's Five Forces model in understanding the business environmentwith its limitations in context of Arcadia....................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONThe below report explores the Apparel retailer Arcadia's industry analysis. For anyorganisation business environment is important. It deals with the various aspects of business thatappears within an organisation. The industry analysis showcases the Porter 5 forces whichexplains the various bargaining powers of suppliers, bargaining power of customers, the intensityof existing rivalry, threat of new competitors, threat of substitutes etc. Also, the report puts lighton the value chain model to analyse the internal business environment of Arcadia. Arcadia is aclothing retail organisation which is headquartered in London, United Kingdom. The company isone of the largest clothing retailers in the country. The model explains the various factors thatimpacts the organisation internal environment of Arcadia's. Along with it, it explains theappropriate adaptations that Arcadia undertakes in response to external business forces ofenvironment and the usefulness of Porter's 5 forces model to understand the environment ofbusiness and describing its potential limitations. All of these models explains how Arcadiamanages to improve its business within its internal and external environment.
MAIN BODYa. Uses of Porter's 5 forces model in identification and analysing of the current environmentalinfluences in context of Arcadia within UK economyThe model of Porter 5 forces is a strategic management tool that analyses industry andunderstands those profitability levers which are underlying in a given industry. The belowmentioned five porter forces explores how these 5 competitive forces impacts the organisationalprofitability and develops a strategy that enhances the organisations competitive advantage inUnited kingdom and its long term profitability in the overall Retail industry. The Porter's Five Forces are:Bargaining powers of suppliersBargaining power of buyersRivalry among the existing playersThe threat of new entrantsThe threat of Substitute productsBargaining powers of suppliers: The suppliers which supply the raw materials toArcadia in United Kingdom tends to act more dominant in order to gain more profits from thecompany. When suppliers ask for high prices while supplying their raw materials the companytend to lose its profitability. To deal with this, Arcadia chooses to build efficient and effectivesupply chains with multiple suppliers. (Aydalot and Keeble, 2018) Also, the companyexperiments with various product designs in which it chooses a variety of materials. In case if theprice goes up of a raw material the company can always shift to another one. The organisationalso develops those suppliers which are dedicated to the company and whose businesses isdependant upon the organisation. This makes them provide the raw materials in lower rates whenthere is less demand and higher rates when there is a rising one. Bargaining Powers of Buyers: The bargaining powers of buyers also makes the Arcadialose it profitability in business. The buyers tend to demand a lot and want to purchase the bestofferings in very fewer prices. It depends upon the customer base of Arcadia in which, if thecompany is having a smaller and a powerful customer base the customers tend to have a higherpower of bargaining and along with it, this increases their ability to seek more offers and
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