Strategies for Boohoo.com in UK Fashion Retail

This report discusses the key changes in the UK fashion retail industry and analyzes the micro and macro factors affecting Boohoo.com. It suggests various strategies and tactics that the company can use to gain a competitive advantage. The report also provides recommendations for improving working conditions and sustainability practices.

Project

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Background of company..................................................................................................................3
Key changes in UK fashion retail................................................................................................4
Key changes in micro environment.............................................................................................5
Various strategies and tactics that could be used by Boohoo. Com............................................6
RECOMMENDATION...................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Retail is one of the huge industries growing at rapid pace in UK by delivering qualitative
products and services from manufacture to end users so that requirements of diverse individual
can be fulfilled. So, in another term retail is a segment which acts as a intermediately between
manufacture and customers in order to earn specific amount of profit margin. Fashion retail is
types of industry in which company delivered products such as clothing as per recent trends,
demand of customers for effective achievement of their goals. Most of the individual in society
wants to look attractive, stylish in order to show off other people so they have forced firm to
make better and innovative clothes design so that they can look and feel better than other people
living in society. There are large number of pattern, design are available with retailers
companies in order to satisfied wants of diverse individual. This report is about Boohoo.com that
is one of the leading enterprises in online fashion retailers in UK. It has analysis various micro
and macro factors that affects on business operation and strategy of firm. At last it has suggested
various strategies, tactic that can be used by firm to gain competitive advantages in future
circumstances.
Background of company
Boohoo. Com is a public limited company which was established in 2006 by Mahmud
Khan with an motivate to delivered fashion clothes or products to people between age group of
16-30 years old. Company have huge market share in online fashion retail of UK with net
revenue of £856.9 million and employees approximately 2,352 as per 2019. It can be stated that
most of clothe products sell by Boohoo.com are manufactured itself in UK that is in London,
Leicester and Manchester. Organisation has more than 36000 products and its own brand in
order to satisfy needs of customers in best possible manner and retain its market share. Customer
have free choice to select specific clothe fashion design for satisfaction of their needs as Boohoo.
Com deals in wide varieties of products and services. Boohoo.com by not providing minimum
wages to employees and forcing them to work overtime so that it can earn more has reduced its
market value. In pandemic situation of Covid -19 firm has not abide to social distancing which
has adverse impact on health and safety of various workers performing different function in
organisation. As per 2019 company had generated sales of £856.9m by offering unique,
differentiate clothes products to diverse individual living in society.

Key changes in UK fashion retail
There are various changes in external environment of business such as policies of
government, economic condition of country, disposable income of customers and changes in
preference, taste or it can be development in technology. Company in order to grow and sustain
in competitive market condition has to adapt to several external changes in order to earn
maximum amount of profitability (Alaraji and et.al., 2017). Therefore, pestle analysis is best
suitable model to identify key factors that impact on Boohoo.com operation and strategy. Such
as:
Political condition: It can be stated that company is operating its business in various countries
across world in order to earn large amount of profit margin therefore there are various political
factors that affects on operation, sales volume of firm. Trade and tariff are some of the regulation
made by government of various countries in order to restrict entry of new firms for protection of
local retailers. Brexit is the one of the policies of government that has reduced overall sales
volume of firm as most of the import and export of trade of UK was with EU member countries
(Sarkar and Khare, 2017). So, it have negatively impacted on company operation at the same
time Boohoo. Com in situation of Covid -19 to earn more profit has forced employees to work
without maintaining social distancing so it have adversely impacted on brand image and
customers loyalty of firm.
Economic factors: There are various components that are included in economic such as inflation
rates, unemployment level and disposable income of people. Company in order to make
investment and set prices for specific segment of people have to analysis economic condition so
that more customers can be attracted to make purchased. UK is facing economic slowdown due
to Brexit thus people are less interested to buy products and services at high prices so firm by
setting prices as per values of clothes have gained maximum satisfaction (Ritch, 2020). There is
tremendous increase in unemployment rates so Boohoo. Com has opportunity to hired highly
talented, skilled and experienced employees at affordable wages for smooth operation of
business.
Social Factors: There are sudden changes in taste and preference which may be result of change
in prices, supply, availability of substitute products and services or development of technology.
Most of the female wants to have differentiated or unique designed of their dressed in order to
have attractive look so Boohoo. Com by providing various fashionable clothes as per recent

trends have meet their social requirements (Haug, 2016). It can be stated that online shopping is
also growing at rapid stage as it provide ease and comfort to customers to select best products
and services as per their choice while staying at their homes. Boohoo. Com by delivering
products to customers at their doorsteps has retained its market share and profitability.
Technological Factors: There are vast changes and developments in technologies that have
impacted retail segment also as most of the organisation are using digital technology to create
strong brand image and customers relationship (Ishar Ali and Kaldeen, 2019). Boohoo. Com is
online fashion retailers that have use digital media to increase awareness or provide relevant
information about company and its products, services to large number of individuals. Innovative
technology has contributed in effective growth of firm at the same time reduce time, cost and
efforts to market different products and services to wide range of customers.
Environmental Factors: It is recent factors which have impacted on companies operation as
people and government are becoming more and more aware about harm caused by huge
enterprise to natural resources and environment of firm. It can be illustrated that Boohoo. com
have not taken steps to protect environment that have create threat to natural resources and
health, safety of individual. Company in order to earn more profitability have ignored cost or
damaged it has caused to natural resources of country while making fashionable clothes.
Legal Factors: It has been revealed that Boohoo. Com was unable to follow some of legal laws
made by government for safety of employees and customers which has impacted on brand image
of enterprise (Leijon and Dahlgren, 2017). Such as it has paid wages to employees less than
government have set that need to be paid to employees per hour for their hard work and
dedication. So, it has resulted in dissatisfaction of employees and decrease in vale of firm.
Key changes in micro environment
Micro environment refers to internal factors that affect business operation such as existing
number of employees, organisational culture and policies that are made by HR for effective
performance of business. SWOT analysis is an effective model that can be used to analysis or
evaluates key changes in micro environment that affects on Boohoo.com business operation.
Such as:
Strength: It can be stated that Boohoo. Com have its strength in strong, wide product portfolio
as firm deals in more than 36000 products to meet requirements of each individual in society. It
have diversified its presence so customers located at different geographical location of countries

can easily select or make purchased of products while staying healthy and safe at home.
Innovation and unique design of products is strength of Boohoo.com that helps firm to expand its
operation internationally and build loyal customers for long term growth and success of
enterprise (Burlison and Oe, 2018).
Weakness: There are key areas in which company lacks which needed to be removed so that
firm can retain its market share and customer loyalty. Boohoo. Com have high employment
turnover which is one of the biggest weakness of firm as it always prioritise on earning more
profitability rather than safety of people. It have not provide minimum wages and good working
environment to employees for performing their respective task which resulted in poor quality of
products and high worker turnover.
Opportunities: Boohoo. Com have opportunities to expand its business in fashion retail industry
by focusing more and more in online presence and digital marketing so that customers
requirements can be fulfilled in best possible manner (Ye and et.al., 2018). Company online
presence and strong network have provided opportunities to enter into new market in order to
earn more profitability and customer’s satisfaction.
Threats: It can be stated that increase level of competition or rivalry in online fashion retail
created threat on business operation. Unethical practices such as forced employees to work
without social distancing or overtime with less amount of wages have impacted overall brand
image and value of firm in mind and heart of customers. Therefore such practices may result as
hinder in growth and success of enterprise in future circumstance.
Uncertain policies of government and continuous development in technologies, changes in
taste and preferences are other factors that act as a threat in smooth operation of business
(Ramampiaro and et.al., 2019). Company need to adapt to external and internal changes to
retained its competitive position and customer’s satisfaction.
Various strategies and tactics that could be used by Boohoo. Com
From the above model and discussion it can be illustrated that there are various internal
and external factors that may acts as a challenges in operation of business. Therefore, manager of
Boohoo. Com needs to prepared effective strategies or tactics which could helps in growth and
sustainability of business in high competitive market situation (Wiranata and Hananto, 2020).
Different strategies and tactic that can be used by managers of firm to overcome different

challenges of internal and external environment for effective achievement of goals are as
follows:
Technological changes: Boohoo. Com sell its products through online platform so it should be
aware of recent development of technologies or mostly used medium by customers to make
purchased in order to attract or influenced them to take accurate decision. Social sites such as
Facebook, twitter and Instragram are mostly used by younger males and females to get
knowledge about recent fashion trends so Boohoo. Com through making its official pages or
websites on such medium can easily share, communicate relevant information to diverse people
about quality of products, unique designed, prices so that they can easily compared with other
competitors and make purchased (Frasquet and et.al., 2018). It should also install such system or
application that provide safe and secure transaction to individual so that they can get confidence
to buy products and services through online sites. At the same time innovative technologies
helps in reducing overall cost, time and efforts of manufacturing large quantities of clothing for
different customers. Therefore it can be stated that Boohoo. Com by making changes and
modification in its technology can meet needs of customers.
Sustainable process: Another challenges for firm was that it have not considered sustainable
practices that lead to dissatisfaction of customers needs thus impacted on operation of business.
Company have given more priority to earning profit rather than preserving natural resources and
environment for better health and wellbeing of individuals. Therefore Boohoo. Com by taking
curial steps in CSR activities can create strong brand image and awareness about company
products and services among large number of individual. It by providing proper training and
development program to several employees that works in organisation can make optimum
utilisation of resources and bring economic of scale (Yoon and Park, 2018). Information
technology can be used by boohoo. Com manager to effective manage different resources so that
unnecessary stock cannot be maintained and customers requirements are fulfilled in effective
manner. So, it can be stated that manager by making changes in its operation and taking steps to
protect environment can contributed in growth and success of firm in online fashion retail.
Differentiate strategy: Boohoo. Com in order to remove challenges of increase level of
competition in online fashion retailers have to make continuous innovation in its products and
method to delivered services to retained maximum satisfaction of customers. Differentiate
strategy will helps firms to charge competitive pricing form number of people as it delivered

unique, attractive and qualitative clothes to large number of customers. Thus, it can be stated that
differentiate strategy will helps firm in removing one of the biggest challenges or threat that is
increase level of competition in fashion retailers.
Working condition of firm: It is last strategies and tactics which could be used by Boohoo.com
for achievement of its objectives and expansion of business in competitive market condition.
Company in order to regain its customer’s satisfaction, market position have to provide
appropriate working condition for health and safety of employees (Aragoncillo and Orus, 2018).
In order to ensure safety of their health it need to follow social distancing policies at the same
time should not forced employees to work over time so that it can earn more profitability. It also
has to provide equal and minimum wages se by government to various employees so that they
can be motivated and inspired to work for such a organisation. Manager should respect view,
ideas of each individual and recognition or gratitude them for their hard work and dedication
instead of prioritising activities in order to earn profit.
RECOMMENDATION
From the above analysis it can be stated that there are key suggestion which can be used by
Boohoo. com to earn more profitability and customers share in future. Company needs to work
on keys areas in order to influenced customers and promote smooth operation of business in
competitive market condition (Lia, Choia and Chowb, 2016). Various recommendations on basis
of above analysis can be illustrated below:
1. It needs to improve its policies and working condition provided to employees in order to
ensure better quality of products and services delivered to large number of customers and
increase in overall brand image of firm.
2. It should move toward sustainable development or effective utilisation of resources by
minimising amount of wastage so that best or valuable products and services can be
delivered to customers.
3. Manager need to adapt to external changes which may be economic condition, recent
trend in fashion retailers, use of technologies to delivered services or customers demand
to gain competitive advantages (Lange, Rosengren and Blom, 2016.).
4. Another step that need to be taken by Boohoo. Com is focus on research investment for
effective utilisation of capital of enterprise and getting optimum outcomes.

CONCLUSION
It can be concluded from above analysis that there are several factors in macro
environment which have created hinder, barrier or opportunities for firm to grow and expand its
business operation. Company need to adapt to ethical and sustainable practices in order to
survive in future circumstance as most of the people likes to make purchased form firm that have
strong brand image and follow values and moral principle while operating its function. At last it
can also be illustrated from above analysis that Boohoo.com by making several changes can
remove its threat and weakness at the same time make optimum utilisation of opportunities for
achievement of its goals.

REFERENCES
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