Introduction to Internal Analysis of the Global Competition

Individual Report
Student ID Number:
Module Name:
Code:
Title:
Course of Study:
Deadline:

Contents
Introduction......................................................................................................................................4
Industry and Competitor Environment............................................................................................4
Corporate Versus Functional Management.....................................................................................5
External Analysis.............................................................................................................................6
PESTLE ANALYSIS...................................................................................................................6
SWOT Analysis...........................................................................................................................6
Porters Five Forces (industry attractiveness and market operation)............................................7
Internal Analysis..............................................................................................................................8
Conclusion and Recommendation...................................................................................................9

Executive Summary
External and internal factors affect the strategic management of brands. NEXT as a
Multinational brand recognized globally originates from the UK. Described in the PESTLE,
Porters Five Forces and SWOT analysis the external factors influence the brand from its
market system. As part of the fashion brand, NEXT is among the top-notch brands. The
macro environment factors determine the brand’s success and failure in different regions of
the globe. NEXT prides itself of more than 700 stores in the world. Founded by Joseph
Hepworth over 150 years ago, the brand has undergone changes in order to suit customer
demands and influence competition in the market. Its operations feature more than 550 retail
on location stores, and online services. From the analysis, McKinsey 7S Framework is an
ideal model for studying NEXT’s internal factors influencing change through structural
systems processes and leaderships. These highlight the effectiveness of an organization’s
brand positioning in the industry. Business management is an integrated approach to
organizational development. This report highlights the modern consumer trends in the
fashion industry using NEXT Inc. as a case example.

Introduction
The retail fashion industry in the contemporary business system is highly competitive. Like other
industries, it comprises of different brands. Next Retail is a popular brand in the high-end fashion
industry. It is a subsidiary of Next Plc, which specializes in the clothing, accessories and home
products. Its regional and global competitors in retail clothing includes Marks & Spencer’s, Gap,
H & M, and Zara. These are all top-notch high fashion designs. On a wider scale Next is a brand
with diverse products in other sectors such as households where it competes with retailers like
Tesco and Debenhams. Strategic management looks at the brand objectives, as well as its
opportunities and challenges externally. This household name in the UK has target customers
such as the high street fashionistas. The brand has a chain of stores in Europe, the Middle East
and Asia. Some of the business strategies used by the brand have been a success while others
have disappointed. Reasons behind this is that the business market is dynamic and keeps
changing. Customers also have diverse preferences, which influence the strategic decisions. The
strategic management framework determines the strengths and weaknesses derived by the
business. The political, economic, social, and legal issues shape the trends in the industry.
Technology factors have brought about sudden changes in the economic sector as retail stores
like Next take advantage of e-commerce. Therefore, corporate objectives and functional
management continue to feature in the fashion business.
Industry and Competitor Environment
The clothing retailer industry in the UK and around the globe includes the sale of clothing,
footwear, and apparel. With a 6% market share, the industry is worth billions. Its growth and
development also affects its related industries such as footwear (Daneshkhi, 2016). The Next
strategic plan concentrates on efficiency, customer service and financial returns. That is why it’s