Retail Industry Analysis: Challenges and Strategies
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Added on Β 2020/07/23
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The report presents a comprehensive analysis of the retail industry, with a focus on Marks & Spencer's recent trends and changes in customer buying patterns. It identifies key issues faced by the retail fashion industries and analyzes PEST factors affecting the organization. Strategies for overcoming challenges are also presented.
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Table of Contents FORMATIVE TASK.......................................................................................................................3
FORMATIVE TASK The report drafted as summative assessment clears the concepts relatingto the retail industry and the recent trends or changes in the sector. It includes a detailed explanation of the key issues that these industries are undergoing through due to the new changes in the lifestyles and different buying patterns of the customers. The cited retail store taken in this report is Marks & Spencer (M & S), which deals with its offerings in fashion as well as food products. In its recent search report, it analysed and concluded that the sales of the cited firm has decreased overtime and thus, depicting the needs to adopt or inculcate changes in its strategies or else, to reframe the whole business related strategy adopted by the firm. In addition, the report present a detailed explanation about the causes that has led to the downfall in the sales of the organisation. Along withthis,it also studies the various strategies that can be adopted bytheconcerned retail store in respect of overcoming this issues related to the sales. . There are various sources available with the cited fashion retail store to analyse and conclude the reasons behind the failures occurring in the firm. The technique used in this report for identifying the issues in the organisation is PEST analysis. This analysis includes determining the factorsin these four environments and the way in which these factors affects the sales maximisation objective of the cited venture. The four environments include:ο·Political environmentβ Government's tax related policies.ο·Economic environmentβEconomic factorssuch as inflation and deflation inversely affects the sales of the firm.ο·Social environmentβ This includes the society, i.e. the population of the country and their preferences. ο·Technical environmentβ New trends prevailing with the people. All these factors under different environments are studied in this report. It is concluded that the offerings made by the firm were not in accordance with the growing trends. Accordingly, the firm has to adopt certain measures or strategies to overcome the same. The various strategies or plans that can be designed by the concerned organisation are: 1. The retail organisation should provide effective sales as well as after sales services to its customers.
2. Offering trendy clothes in accordance with the current style statement penetrating in the market. 3.Connecting the brand and its offerings with the social networking sites. 4. Undertaking digitalisation of its retail store for customer attraction. 5. Creating mobile apps in the name of the cited venture and thus, offering various discount schemes on its installation. 6. Offering low cost and affordable products. 7. Giving customer privileged advantages through undertaking their reviews. 8. To be with the growing trend, enabling free Wi-Fi connections to the visitors or customers. The report is presented in the following way:ο·Introductionβ It included a small introduction of retail practices and the cited venture, Marks & Spencer.ο·Question 1β This part discusses the various key issues that are faced by the retail fashion industries and the detail analysis of PEST for the cited organisation. ο·Question 2β This includes the strategies that can be adopted by the organisation to overcome the same.