Analysis of Next Plc in the UK Retail Sector

Next

Table of Contents
INTRODUCTION...........................................................................................................................3
Introduction to retail sector..........................................................................................................3
Introduction to the company........................................................................................................3
PESTLE analysis of the company...............................................................................................4
Porter’s five forces model............................................................................................................5
Strategies and tactics....................................................................................................................6
Recommendation.........................................................................................................................8
Conclusion.......................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The following report includes information about the retail sector of UK. It consists of the
various models which helps a fashion company to analyse the strategies that it can use for
performing business. This reports starts with the introduction of retail sector’s knowledge and
introduction about the chosen company ‘Next’. There is PESTLE and Porter’s model used for
developing strategies that can be used by this company for sustaining within market.
Introduction to retail sector
Retail is defined as the way by which goods as well as services are provided to the consumers.
This consists of providing goods directly to the manufacturers or consumers. The retail industry
has huge scope as there is a large pool of potential customers which are involved in purchasing
of products (Wigley, 2011). According to the statistics, within the UK retail industry, there was
generation of 1.14 trillion euros last year. This industry has the possibilities to provide profits to
various businessman.
Introduction to the company
The chosen company for doing this report is Next Plc. This is a British multinational clothing,
footwear and home products which are having headquarters in Enderby. There are approximately
700 stores of this company and out of this, 500 stores are located in UK. This company provides
products in Asia, Europe and Middle east. This is one of the nest retailing company within UK.
This company has great competitive rivalry with Marks and Spencer. The founder of this
company was Joseph Hepworth and he started this company in the year 1864. Joseph worked
hard and expanded this company by becoming the pioneer for the development of various chain
stores in Britain. This company sold women wear retailer Kendall and Sons and acquired more
than 600 stores. Next company basically has three main channels – Next retail, Next Directory
and Next International. Next retail is chain of more than 550 retail branches in UK. The Next
directory is a home shopping catalogue and website which is having more than three million
active customers (Zhang, 2013). Nest international has stores across the world. This company
deals with the fashion product selling across the world. This is helpful for the company as there
are opportunities of earning more profits and money in the retail sector. Next Plc. Provides latest
trends and fashionable products to customers. These consists of women wear mainly and
fashionable accessories are also sold within it’s stores.