Research on River Island (pdf)

RESEARCH

Table of Contents
INTRODUCTION...........................................................................................................................1
Background of Company.................................................................................................................1
Strategic Analysis............................................................................................................................2
Market Orientation.................................................................................................................2
Strategic priorities..................................................................................................................3
Competitive Advantages........................................................................................................3
External Analysis.............................................................................................................................4
Pestle analysis for River Island..............................................................................................4
Porter's five forces for River Island........................................................................................5
CONCLUSION AND RECOMMENDATION...............................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
This project is about the company in order to increase the profit, sales and market share.
Company wants to expand its business in different countries. Company has its aim to elaborate
its business in the world in order to occupy a leading position in the world. Company is
competing with high level of company. The present report is about identifying several elements
within external environment that has great impact on the operation and functions of business.
This assignment will also make understand the analysis of strategic marketing position of the
chosen company. In this assignment, River Island Company has been chosen for assessment.
River Island is a fashion clothing industries operating in retail sector. Furthermore, the report
will also analysis present market position of company as well as external factors affecting the
environment.
Background of Company
River Island is the most successful company in fashion clothing in retail sector. Bernard
Lewis is the founder of River Island. He is a retailer since his birth. In the year 1948, Bernard
Lewis has start his business in selling vegetables and fruits. After that it expands its business in
knitting wool in London. This company is expands its business in various retail businesses. It is
joined by three brothers and partnership begin in between 4 people. In the year 1965, River
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island has about 70 stores in UK. The earlier brand name was Lewis Separates which was
changes or rebranded to Chelsea Girl. The name selected because of Chelsea was the hub of
fashion. It is the first chain of boutiques in UK (Hung, 2011).
In the year 1970, David and Bernard, left the business. They started Lewis Trust Group
and David has started other business in hotel sector. Bernard is running the retail operation which
allow company to elaborate its business into menswear with the launch of Man Stores in 1982. In
1988, Bernard has merger his business with Chelsea girl in order to make a single name of brand
of River Island. Bernard is an awesome retailer who is intelligent at taking the complex and
making it simple. Bernard open its first shop in republic of Ireland in 1993. The market of
Bernard has expanded to Russia, Poland and many other countries. Kids-wear in is launched by
River Island in 2010.
Strategic Analysis
Market Orientation.
The first and the main purpose of each and every company is to execute the needs and
requirements of their consumers by its products and services. In pastime, the main goal of
company is to increase the sales and profit, they did not focus on customer’s desire and wants.
Market orientation is a coordination in campaigns of marketing in between company and its
consumers. It always focuses on enhancing satisfaction of customer. In today's era of
modernisation, market is run by customers not by business. River Island Company is focusing on
intense worth and value to customers, which automatically increases the sales and profit of
company (Mpoyi, 2012). The concept of river Island marketing orientation is built on three
principle-
 Coordinated marketing
 Customer focus
 Profitability
River Island Company has ability to form an orientation in respect to any of three
principle. These all principles depends on internal and external structure and culture of company.
River Island follows market orientation strategies as they focused on customer satisfaction rather
than increasing sales and profit only. They are delivering effective products and services in order
to satisfy them. Furthermore, they are always being updated towards fashion and brand. The
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