Organizational Strategy and Leadership

Running head: ORGANIZATIONAL STRATEGY AND LEADERSHIP
Organizational Strategy and Leadership
Name of the Student
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1ORGANIZATIONAL STRATEGY AND LEADERSHIP
Introduction:
The modern business conduction is seen to experience notable amount of changes
over the years and with the increasing competition of the market, the needs of the changes in
the various aspects of the business are becoming notably visible. The impact of the intense
business competition on the retail industry is pretty significant. The companies operating in
the mentioned business industry are facing the detrimental impact of the intense market
competition which is seen to force them to try different strategies for the effective
management of the impact of the competition (Robinson and Hsieh 2016). The increasing
number of new entries into the market is considered to be a major reason for the significant
increment in the intensity of the competition. As a result, majority of the organizations are
seen to employ the strategies such as the competitive pricing policy or the improvement in
the quality of the products for gaining the much required competitive advantage over the
competitor organizations (Baker and Saren 2016). However, there are few organizations that
are capable of applying both the strategies. With a precise focus on the competition, it is
pretty visible that the organizations are trying their level best in achieving the preferences of
the customers through the design of the products or the services that they offer to the
customers. Hence it is evident that the key changes in the business industry are significantly
influencing the business conduction of the organizations operating in the mentioned industry.
As a result, the organizations are focused in the identification of the changes that have
the potential to improve the sustainability of the business that they are conducting. The
conceptual definition of the retailing states a business process that includes a range of the
business activities that are to be conducted for selling a product directly to the end users
(Pantano 2014). The fashion retailing includes selling of the products like clothing and
fashion accessories. The paper is focused in the elaboration of the various aspects of the

2ORGANIZATIONAL STRATEGY AND LEADERSHIP
fashion retail industry. The paper includes an analysis of the Porter’s five forces for the
effective portrayal of the level of competition that the organizations operating in the
mentioned business are facing. Adding to this, the paper also includes a brief discussion
regarding the changes that the mentioned industry is expected to face in the 5 different
aspects of the mentioned model.
The chosen business industry is the fashion retail industry. The mentioned industry is
facing considerable amount of changes and that is one of the main reason of the fact that the
mentioned industry is termed as ever changing. As the fashion industry is significantly
influenced by the comments of the customers, the business conduction of the organizations is
changing in a notable manner in an attempt to achieve the preferences of the customers. The
Porter’s analysis is significant in delivering the sense of the competitiveness that the
mentioned industry is facing.
Competitive Rivalry:
The mentioned industry is seen include notable number of the existing organizations
such as Blueberry, Next Plc, Mark & Spencer along with ASOS which is significant in
stating the high level of competition that the mentioned industry is able to experience. The
fashion retail industry has a market share of 7% which defines the notable craze of the
customers in purchasing the products of the mentioned industry in repetitive manner
(Fashionunited.uk 2019). In addition to this, the chosen industry is seen to be subjected to a
growth of 1.6% over the he time span of 6 years staring from 2014 to 2019 (Ibisworld.co.uk
2019). The chosen industry is observed to include 11859 number of business organizations
which is significant in specifying the competition of the market. Apart from this, the
mentioned industry is observed to generate 60.7 million euro in the year 2018 along with 24
billion US dollars as revenue in the clothing and the footwear e-commerce industry in the

3ORGANIZATIONAL STRATEGY AND LEADERSHIP
year 2018 (Statista.com 2019). Hence it is pretty evident that the mentioned business industry
is significantly improving in terms of generation of revenue. Apart from this, the revenue in
the fashion segment is close to 24914 million US dollars (Ibisworld.co.uk 2019). The 1.6%
growth rate provides the proof of the significant growth that the mentioned industry achieved
till date and along with that, the industry is expected to achieve a significant increment in the
growth rate which is pretty evident with the CAGR report which claims that the mentioned
industry is expected to achieve a growth of rate of 6.1% over the time span of 5 years starting
from the 2019 to 2023 (Statista.com 2019).
The largest market segment of the fashion retail industry is the apparel industry and
the above mentioned statistics of the growth and the increment in the rate of growth are
significant in specifying the profitability that the industry provides to the organizations
operating in it. Considering the business conduction of the market leaders of the industry, it
can be said that a larger share of the market is notably divided into the companies like
Burberry, Next Plc, Mark & Spencer along with ASOS. There are considerable number of
factors that serve as the basis of the competition such as the application of the pricing policy,
the promotion or the marketing tactics of the organizations, the incorporation of the
technology and innovative ideas into the manufacturing and design or the products along the
achievement of the customer preferences in the design of the products.
The largest company in the mentioned business industry in UK is Burberry in terms of
the market capitalization. The market value of the mentioned organization is close to 10
billion dollars and along with that, the mentioned organization is able to generate a revenue
of 3.8 billion dollars in the year 2017 which signifies the substantial share of market that the
chosen organization is able to capture (Burberryplc.com 2019). Though the concept is retail
fashion, the mentioned organization operates in both wholesale and retail channels where the
retail sales is seen to be significantly larger in comparison to the wholesale sales of the