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UK Fashion Industry Analysis

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Added on  2020/02/05

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This assignment delves into the UK fashion industry. It presents data on the industry's economic value, measured in British million pounds and percentages, sourced from "UK Fashion Industry Statistics" (2014). The assignment also incorporates academic research papers focusing on marketing intelligence in technology-intensive companies, entrepreneurial marketing in small businesses, and the role of emotional intelligence in marketing exchanges.

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Marketing Intelligence

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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Main stages of purchase decision making process:...............................................................2
1.2 Theories of buyer behaviour.................................................................................................4
1.3 Factors affecting the buyer behaviour...................................................................................5
1.4 Relationship between brand loyalty, corporate image and repeat purchasing:.....................8
TASK 2............................................................................................................................................9
2.1 Market research techniques...................................................................................................9
2.2 Achievement of Marketing research objectives..................................................................10
2.3 Assessing validity and reliability of the market research findings....................................11
2.4 Preparing marketing research plan:.....................................................................................12
4.2 Customer Satisfaction Survey.............................................................................................13
4.1 Techniques of assessing customer response......................................................................15
4.3 Success of Survey...............................................................................................................15
TASK 3..........................................................................................................................................16
3.1 Market size trends...............................................................................................................16
3.2 Competitor Analysis for British Airways...........................................................................17
3.3 Evaluation of opportunities and threats for British Airways..............................................19
Conclusion.....................................................................................................................................19
REFERENCES..............................................................................................................................21
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INTRODUCTION
The gathering of information in order for making decisions within a business is often
termed as Marketing-Intelligence. Resemblance is shown from it in accordance with Market
Research. In the report, Marks and Spencer has been taken into consideration which is a major
British multinational retailer headquartered in London. It is specialised in food items, fashion
and home elements. The founders of the company are Michael Marks and Thomas Spence. They
started the company in Leeds in 1884 and it is also a FTSE 100 index constituent. M&S has a
total of 852 stores throughout UK, as well as it has many other international stores across
countries like India, Turkey, Russia, Greece, Ireland, France, Poland, Hungary, Finland and in
Spain. Discussion has also been done on behaviour in terms of individuals and markets. Various
theories of buying behaviour and also the factors affecting the same have been discussed. Focus
on market size trends of a particular company has also been done and according to it
opportunities and threats have been evaluated.
TASK 1
Footnote :-
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1.1 Main stages of purchase decision making process:
Footnote:-
In the process of making decisions, customers basically have to undergo five stages
namely; need of recognition or perception, searching of info, evaluating the alternatives,
purchase decisions and the evaluation stages related to the post purchase. The five stages
mentioned above act as a guide for the marketers for better understanding the desires of a
customer with reference to a particular product. Moreover, customer never gives guarantee of
moving according to the mentioned steps. Below are listed various stages which the customer
usually follows: Problem awareness and need recognition: It accounts as the most important step in the
process of decision making. Difference between actual situation and the desired one leads
to need for recognition. Making it clearer, it is basically a state of imbalance between
desirable and the current status. It can either result as an impulse which one has been
experiencing for a long time or suddenly. For instance, a customer who had recently
shifted to Minnesota possibly may not understand that he would be requiring winter
clothing unless he looks at a particular store advertising it. He will immediately realize
the need and buy the clothes.
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Searching of information: When an individual realises the need of searching information
regarding a particular product for the fulfilment of his requirement, the second stage
occurs as a result of this. The sources from where the information could be collected can
be categorised as the internal and external. The information which is already present in
the minds of individuals is referred to as the internal sources. Friends and family are the
ones who provide information according to their experiences related to particular product
and thus they are included in the external sources. For instance, some people willing to
eat fast food will search for yellow pages and thus, restaurants must be retrieved by the
customers' memory before taking it into consideration. In order to buy large investment
products, external search is conducted by the customers. For example, before buying a
car, the consumer asks friends and family for their opinions, read reviews in Consumer
Reports, consult various websites and visit different dealerships. Evaluation of the alternatives: After getting information, the individual evaluates
alternatives of the same product which is to be purchased. All the available brands
providing the same product at a lower price are included in the alternatives. Further, then
the alternative which fulfils needs and requirements at a desired cost is taken into
consideration by the individual. Most of the times, the products providing high quality at
a low price is chosen by the customer. For example, if involvement from the customer
side is high then he/she will evaluate various brands, whereas if it is low then only one
brand might be taken into consideration. Purchase: After evaluating all the possible alternatives, the individual analyze various
available products and find the solution to fulfil the needs. The brand or product which
satisfies individual needs completely is chosen as the most appropriate one. Information
collected in the second stage leads to taking such decisions. Quality, availability and
return policies related to the product are the factors which affect the decision. For
example, if a product of Amazon is fulfilling all the needs and desires of the customer
then Amazon will be the first priority for the individual. Post-purchase behaviour: An impression is set towards product by the individual in this
stage. Whether the individual should buy the product next time or not is decided in this
step. If the individual has negative experiences related to the product, then that particular
brand will not be considered by the individual next time. For example, if the product
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purchased from Amazon does not satisfy desires of the individual then he/she would not
prefer purchasing of products from Amazon. Further, it is the state in which customers
decide whether they will make the further purchases. In this context, it is important that
firm make sure that all the services and products that are delivered to customers have
satisfied them.
1.2 Theories of buyer behaviour
Footnote:-
In order to attract the consumers and encourage them to make a purchase and also for
supporting take effective decisions, a company follows a certain structured behaviour which is
known as the buying behaviour.
It includes the following theories which are discussed below: Economic Theory: Income and utility derived from a particular product or service affects
the buying behaviour of people in this theory. Socio-cultural-theory: Social environment surrounding individual influences the
behaviour of consumer as per this theory. Friends, family relatives and other social
groups related to the individual are the one affecting his/her purchase decision. Psychological Theory: The behaviour of the consumer is also affected by past
experiences and the knowledge about the products. Brand commitment comes into
picture in this theory.
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Reasoned action: Importance of pre-existing attitudes within the process of decision
making is focussed here. Behaviour of people on the basis of their decision to derive a
specific result is pointed by it. Motivation need theory: On the basis of the five-part priority system, people take their
action for fulfilling their needs according to this theory.
1.3 Factors affecting the buyer behaviour
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Footnote:-
Consumer behaviour is an attempt to analyse and predict human actions in buying role. It
is defined as “all psychological, social, physical behaviour of the potential customers as they
become aware of evaluate, purchase, consume, and tell others about the product and services”.
The major factors influencing the consumer behaviour are: Cultural: They posses a major impact on the behaviour of consumers. The culture
followed, subculture and the social status plays a vital role.
Culture defines the wants and behaviour of a person. The growing individual acquires a
set of values, perceptions, preferences and behaviour through his/ her family or any other
key institutions.
Sub-Culture takes geographical regions, religions, racial groups and nationalities into
consideration.
Social Class are the enduring and homogeneous divisions within a society, the members
of which share similar behaviour, culture, interests and values. They also reflect
indicators such as area of residence, education and occupation along with income. Social: Humans need people around them whom they can talk with or discuss issues to
get better results and ideas. Its is really important for an individual to adhere to the laws
and regulations of the society. They include-
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Reference Groups: It consists of groups having a direct or indirect impact on the
attitude or behaviour of consumer. Groups having a direct impact on consumer are
referred as membership groups.
Family: The most important consumer buying organization in the society is family and
extensive research has been done already on this. Family members influences act as most
influencing primary reference.
Role and statuses: Participation throughout an individual's life including family, clubs
and organizations defines the position of a person and is termed as role and status. The
expectations from an individual to perform activities defines his/her role and describes
the status as well. The status and symbol capabilities of goods and brands are well known to the
marketers. Personal: Not all the individuals prefer buying similar products. Personal factors play an
important role in affecting the consumer behaviour and they are discussed below:-
Age and stage in the life cycle: People buy different goods and services depending on
their product's lifetime.
Occupation: Marketers identify occupational groups having an above average interest in
their products and services. Company could specialise its certain products for some
selected occupational groups.
Economic Circumstances: The economic stability comprises of spendable income, assets
and savings, loans, power of borrowing, behaviour towards expenditures and savings.
Lifestyle: The pattern of a individual living in the world as described by his/her interests,
activities and opinions.
Personality and self concept: The ability of a person to distinguish psychological
characteristics leading to constant and tolerant reactions towards the atmosphere is
termed as personality. It acts as an important factor in assessing the consumer behaviour,
on the note that classification of personality type could be done correctly and that strong
bond is maintained between specific personality types and brand or product choices. Psychological: These factors give a description of an individual that drive his actions to
seek satisfaction. They include:-
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Motivation: At a given time a person has many needs which becomes their motive when
the certain level of intensity is reached. Each product has the capability of arising different
motive in consumers.
Learning: It involves changes in an individual's behaviour arising from experience.
Perception: The perception of situation by an individual influences his/her action. It
influences the individuals' selection, management and implementation of data in order to develop
sensible scenario of the world.
Beliefs and attitudes: Beliefs and attitudes a person are obtained by observing and
performing. These in turn influence the individual's buying behaviour.
1.4 Relationship between brand loyalty, corporate image and repeat purchasing:
Footnote:-
The dedication and loyalty of the customer with respect to the brand is represented by
brand loyalty. The desire to buy that particular product is shown by it. The customer purely gets
involved with the brands of their choice and preferences. If a consumer like the products and
services of a brand then other brands are neither considered by them nor do they wish to buy
some other brand.
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The psychological picture of the brand in the mind of the widespread community is
represented by corporate image. The firm tries to develop its image as a brand in the market and
use it to retain and enhance the consumer attraction.
Repeat purchasing refers to purchasing once buying of the goods or services by the
customer and the customer being pleased with it so that he/she uses that same product or brand
again.
All the three notions mentioned above are interlinked to each other. The firm recruits
different creative and impactful techniques in marketing in order to create positive image of the
company which is widespread. The consumers are attracted by the firm and make a purchase.
The first product purchased from a particular brand is usually a test. If all the needs of customer
are satisfied then, that particular will be regularly purchased from that specific brand and further
give their family and friends recommendations about it.. A repeat procedure is carried on and
brand loyalty is achieved gradually. The specifications and needs of the customer, related to
product, must be fulfilled so that they again buy that product and recommend to other people
associated with them.
TASK 2
2.1 Market research techniques
In order for a better understanding about the preferences with respect to customers,
market research is very important (Cacciolatti, 2013). The changes in the preferences of the
customers takes place frequently and for a better understanding of them various research
techniques of marketing are there and few among them which are important are listed below: Interview: The assistant brand manager uses this method according to which interview of
customers is taken and questions related to the purchase they make are frequently asked
to them. Issues with respect to the service of the product provided to them by the cited
firm that are faced by them are also included in it. This enables to know the perception
of respondents through which the findings can be concluded within an appropriate
finding. Observation: Manager will observe the customers according to this method. Regular
purchase that are made by them are enabled to be known through this method. The
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problems which are faced by the customers are also made known through this (Tsiotsou,
2010). And then changes in products and services are made accordingly.
Survey Techniques: Questionnaires are developed to let the organization have detailed
information in association with diversified operation that are carried in a business. With
particular reference to this, the perception of customer over products & service,
employee performance, customer’s satisfactory level, etc. A finding is done upon all
these factors. Based upon the results of these findings the firm implements the required
changes.
Marks and Spencer are facing problems in order to bring back its clothing back into
fashion. It is also facing a very fierce competition from online shopping sites (Nasri and
Charfeddine, 2012). In order to introduce a boon in M&S various survey techniques must be
carried out related to each and every parameter involved within the organization. Then a proper
observation should be made that which parameter or strategies needs to be changed and action
should be taken accordingly to apply the changes.
2.2 Achievement of Marketing research objectives
In order for conducting a research, one thing is of uttermost importance and that is
development of objectives which will help to develop a way in order to achieve it. Current
research has been performed by CEO of M&S. In context with this, the objectives that need to be
achieved by them are:
To develop new strategies on how to bring back the fashion trend of Marks and Spencer.
To achieve the needs and desires of customers causing them less dependent on online
sites for shopping.
In order to develop new strategies to bring back the clothing of M&S back into fashion,
firstly analysis of the reasons of downfall of the clothing trend needs to be done (Reijonen and
Laukkanen, 2010). Then focus should be made on each and every possible cause. Then a team
must be set up to apply new strategies that could help the organization in bringing back its
clothing trend. Furthermore, analysis should be done on how the new strategies have affected
M&S. If the strategy plans out to be successful then it is a good thing for the organization and in
case if any complications occurs deeper analysis should be done keeping the customer's
viewpoint in mind.
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Furthermore, to compete with the increasing online fashion trend and attract the
customers, relevant information needs to be collected from the customers side that why they are
moving towards them (Caemmerer, 2011). Proper observation needs to be made so that based on
that outcome new products and services could be developed.
Once the objectives are achieved by the M&S, then this would help to a great extent in
order to uplift the position such a prestigious brand which has been serving the people across the
world since long. This aim when achieved will bring back the image of the organization and
satisfy the needs and desires of the customers all over the world.
2.3 Assessing validity and reliability of the market research findings
In order for determining the level of consistency levels as time passes by, Reliability
plays to be an effective measure. There are different types of reliability in terms of research
works (Hardesty and Sheng, 2011). The first type of research reliability is that whether the result
of the research obtained are proving out to be reliable as time passes along. This can be explaine
as when the same researcher carries out study at another time, he would gradually get the similar
result. The next category in accordance with reliability is that whether the result of the research
are emerging out to reliable as samples are being taken. Also, this can be taken with reference to
a group of people that involve participation within the research work.
While keeping side the reliability factor, another one emerges out to be a crucial element
being utilised in various types of research studies. Namely, two categories have been broadly
classified in terms of validity (Barrett and Miller, 2011). It is of surety that the cause and effect
relationship is determined within the research work by aid of Internal Validity. External
validity definitely assures the outcomes provided by participants of our study are true people
outside the experiment as well.
When new strategies regarding M&S will be planned up and then introduced the
reliability of new strategy needs to be found out both across time and samples obtained as a
result of research done by CEO. If the results are meeting the objectives of bringing back the
clothing into fashion and attracting customers towards M&S then that strategy will be reliable.
Then the validity needs to be assessed. The cause of introduction of new strategy and the effect
of that strategy should be properly examined as indicated by internal validity (Caber, 2013).
Further the results obtained after the study should be true to the customers which accounts for
external validity.
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2.4 Preparing marketing research plan:
The marketing research plan for introducing new strategies to bring back the clothing
trend of M&S will focus on various methodologies as discussed below:-
Background: This research plan involves carrying out of a detailed research in marketing in
accordance with background of Marks and Spencer which is a British multinational retailer
spread across the globally. To let the profits and sales enhance, company must engage in order
to introduce brand new product in markets that are successfully established (Gök and Hacioglu,
2010).
Rationale: The rationale is to successfully introduce new strategies targetting the upliftment of
clothing trend of M&S and attracting customers.
Objective:
Development of new strategies for back the fashion trend of M&S. Achieving the needs and desires of customers and making them less dependent on online
websites.
Selection of the methodology: In order to conduct the plan of marketing research, the collection
of data will be done based upon primary category. This will further involve the designing of
questionnaire with respect to consumers of M&S (Jones and Rowley, 2011). The researcher will
lay his focus upon both qualitative and quantitative methods in order of gaining necessary
information.
Analysing data: Final level involved within planning of research work for the marketing
accounts to be analysation of data that researcher will make use of thematic methodologyin order
to determine the actual level of satisfaction towards their products.
Table 1: Timeline
Tasks/
weeks
1 2 3 4 5 6 7 8 9 10 11
Stating
background
Objective
formulation
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Primary
data
collection
Qualitative
methodolog
y
application
Analysis of
carry out
data
Results
presentation
Result
4.2 Customer Satisfaction Survey
1. What is your name ?
__________________
2. What is your age ?
___________________
3. What is your gender?
___________________
4. Are you satisfied by the services provided by Marks and Spencer?
Yes
A little less
Neutrally satisfied
No
Strongly not satisfied
5. Do the quality of the material utilised in clothing used by M&S meet up to your
expectations?
Yes
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No
6. Do the prices of the products meet a person's level of income?
Yes
No
7. How frequently you visit M&S for shopping?
Annualy
Two times within a year
Monthly
Once in a week
8. Are thereany recommendations about M&S products given to your relatives and friends from
your side?
Certainly
Deniable
9. What elements in association with M&S products grabs your attention to the most?
Shopping experience
Product quality
Pricing factor
Customer services
All of the above
10. What are your dislikes about the M&S company?
________________________________________________________________________
11. Would you like to suggest any recommendations for the M&S company?
________________________________________________________________________
12. Rate the quality of product purchased from M&S?
Higher
A bit less high
Lower
A less lower
13. Will you preference be given to our commodities in upcoming times from your side ?
Sure
Not at all
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14. Would you prefer to purchase new products offered by M&S company?
Yes
No
4.1 Techniques of assessing customer response
Assessment has been made that the manager of Marks and Spencer company namely
utilises two broad categories, in order to easily get the response from customers regarding the
different products offered by them. Getting response from the customer is very important for the
company to increase its market value and gain recognition. There are basically two techniques
involved as discussed below: Conducting an online survey: The conduction of an online survey from the customers
who visit the company websites is the most effective technique for assessing the
customer response (Cacciolatti and Fearne, 2013). Nowadays customers are mainly
preferring online medium for purchasing quality products. Therefore, if an online survey
is conducted then it will definitely support the company to acquire precise feedback from
customers. Point of Sales systems: Assessment of customer base is another way of evaluating the
feedback or response from the customers. Management of e-commerce transaction and
inventory of the physical store is done by the high tech software used by company
(Tsiotsou and Ratten, 2010). Hence, recording and gaining the data of online and in store
purchasing of products of Marks and Spencer is supported by this technique.
4.3 Success of Survey
After the questionnaire for customer satisfaction has been designed survey must be
completed by the survey management. Overall the survey has emerged out in successful manner
for determination of satisfactory levels perceived by customers towards the product and service
which is offered byMarks and Spencer. Conduction of survey was carried amongst most loyal
customers in accordance with Marks and Spencer who often purchase products for the branded
retailer (Nasri and Charfeddine, 2012.). Reviews have been give on basis of answering each
particular question from respondent’s side. In addition, this further aids the organization for
determination of basic needs and wants of customers. Moreover, it has also proven to be
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effective method for determination of customer satisfactory level with respect to offered products
by company’s side. So, finally statement could be formulated that customer satisfaction survey
has proven out to be successful since researcher led the conduction of research in an impressive
way.
TASK 3
3.1 Market size trends Employment: On the basis of current market scenario, the total individuals employed
within the industries of fashion, textiles and fashion retailing at UK is nearly about
555,000. In addition to it, the majority of fashion based industries are residing within
retailing sector in clothing. Approximately 75% individuals working in retailing sectors
of clothing industry are getting employment from this sub-industry. About 11% work
within the sector of retail sale of footwear and leather goods and 8% work in the
wholesale of clothing and footwear (Ardley and Taylor, 2010). The manufacture of
apparels and foot wears offer most less amount of jobs..
Fashion-based firms: The higher market values of about 8.15 billion pounds has made
Next Plc one of the largest fashion based firms in UK.. It makes most of its 4 billion
pounds from annual sales (UK Fashion Industry Statistics, 2014). Only 2% of revenue
comes from international retail. The second largest fashion retailer is Marks and Spencer
which is currently valued over 7 billion pounds. It has annual sales of 10.3 billion
pounds. But it has been experiencing downward going sales pattern. The Arcadia Group,,
is the third largest UK fashion company. Since it no trades have been done by it in public,
difficulties arise in selling of its shares. Arcadia's current annual revenues are at 2.1
billion pounds (Donnelly, Simmons and Armstrong, 2012). Other trending companies
include Burberry and New Look with market value of 5.8 and 4.4 billion pounds
respectively.
Consumer Expenditure: It has been illustrated below :-
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Importing and Exporting goods: The exporting in accordance with is about 6.5 billion
pounds. For footwear and head-wear it is 1 billion. On other side imports of textiles and
17
Illustration 2: In Percentage
(Source: UK Fashion Industry Statistics, 2014)
Illustration 1: In British million pounds
(Source: UK Fashion Industry Statistics, 2014)

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clothing is about 24.3 billion pounds (Slowikowski and Jarratt, 2013). Again for footwear
and head-wear it is 5.4 billion pounds.
3.2 Competitor Analysis for British Airways
The competitor or in other words the Porter's five forces analysis for British Airways emergess
out to be most influential. This company provides full time services at g;lobal level, mainly by
laying majority of its focus upon services of passengers, cargos and handling of field service.
There are basically five key factors that lead to effective strategic development. The competitive
strengths of firm along with its ability for earning profits, will be unveiled by a very detailed
Porter’s Five Forces analysis of British Airways (Chong and Leing, B, 2011.). Supplier Power: In order to run its business the required amount of aviation-fuel and
planes are obtained from other firms. A certain amount of power collectively is being
usually commanded by such suppliers. As a result the overall profits being earned from
various operations are gradually affected. The main reliability is shown upon the
manufacturer who supplies plane which are Boeing and Airbus. Now, as a result
majority of suppliers account to belong from this category, therefore they demand a
huge power in accordance with buying. It is reliant on Global fuel_prices; which is
consistently declining at present times. Power of Buyers: The main focus by British Airways is laid upon the passengers for its
revenues. Tickets could be easily purchased from other companies thereby giving them
some power (Ardley, 2011). But their power gets limited when flights of international
level are considered, since a more effective network is possessed by British airways at
global level. Information is nowadays easily accessed by users via internet medium for
referring other airlinesthereby offering them major authority for choosing a particular
company to travel along. Marketing barrier within Industry: One of the barriers accounts to be imposing of strict
industry based regulators. For entering into several other markets British Airways may
find it difficult to enter because enhancement of the long term carriers of haul.. But Air
Asia withdrawing suddenly from mrket of Europe will lead to elimination of majority of
low costing based airlines. (Chan and Ngai, 2011). New entrants do not posses a threat at
all.
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Rivalry in competitive terms:Both categories of flights whether long or short haul, are
offered from it.. There is no difference between other companies and BA in long haul
category with regards to services and pricing. Existence of several companies offering
the services makes the short haul services more competitive sector. Shifting of mergers
by rival companies for enhancement of profits thereby taking the level of competition to
another level..
Substitute threat: Main substitute for BA include; trains, cars or buses which are used
only when people wish to travel over short distances. This means that they can only
threaten company's short haul flight services. No substitute for long haul services is there
as such (Siomkos, and et.al., 2010). The normal buses, cars and trains in order for posing
threat upon BA, the air transport networks and travelling times shall be covered by it.
Thus, it could be said that theranging of power in buying is from little to medium-levelwhich
indicates favourable working environment for British Airways. Since Boeing and Airbus serve
asmajor suppliers to British Airways, noteworthy buying power is possessed by them. The
ample of rivalries existing in the marketplace serves as a major risk involved towards BA. Cut-
throat rivalry is present amongst long and short haul sectors. The threat of possessed by
substitute and brand-new market-entrants is significantly lower which indicates favourable
market-environment for BA.
3.3 Evaluation of opportunities and threats for British Airways
Opportunities for British Airways include :
Market-expansion: As the developing economies are emerging increase in
interconnectivity demands , infrastructures investments for travelling, middle-class
expansion, rising tourism within foreign have led to creation of ample of opportunities
within major airline industries for route development, (Pérez, González and Cruz-Ros,
2012Pressure of small buyer: Due to the intervention imposed by the government
activities of many airline companies are affected. This causes many of the competitors to
forcefully take exclusion from marketplace because of higher costs of the struggling and
competition global economic level.
Intimidations for British Airways include the following:
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Competition in the market: Fare discounts provided by company has historically affected
the British Airways results in a negative way because BA needs to give response to the
fares of competitors in order for maintaining passenger traffic (Haverila and Ashill,
2011). Government Regulations: Each and every task performed by the airlines is
influenced or governed by a series of strict regulations. Regulatory developments impact
a industry and its long-term strategies.
Development of infrastructure: Developments within infrastructures in developing and
developed world, various other alternative modes of transportation in Japan and China;
Bullet trains and metros possess a major threat to airlines industry.
CONCLUSION
For successful running of an organization each and every parameter related to it must be
considered and also focussed. The decision making process should be effective so that company
reaches new heights with the positive impact of those decisions taken. Decisions must be made
keeping the needs and desires of customers in mind because they will play a major role in
affecting the market value of an organization. In order to know their viewpoints various surveys
must be conducted by the organization where the company will get to know overall image of
their goods and services. Through this survey they will also get the idea about whether they need
to implement any changes in their current strategies or not. This online survey idea will also help
the multinational organization Marks and Spencer to regain its position in the market. If all the
steps are followed properly then marketing intelligence could be easily achieved.
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REFERENCES
BOOKS AND JOURNALS
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