Strategic Analysis of TK Maxx

Running head: STRATEGIC ANALYSIS OF TK MAXX
STRATEGIC ANALYSIS OF TK MAXX
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1STRATEGIC ANALYSIS OF TK MAXX
Table of Contents
Introduction to retail.......................................................................................................1
Introduction to the company..........................................................................................1
Key relevant changes within the UK fashion retail.......................................................2
Relevant changes within the micro environment...........................................................5
Suggest and discuss strategies and tactics that could be used........................................5
Recommendations..........................................................................................................7
Conclusion......................................................................................................................7
References......................................................................................................................9

2STRATEGIC ANALYSIS OF TK MAXX
Introduction to retail
According to Aghazadeh (2015), retail can be defined as the process that is
implemented for selling the consumer services or goods to the customers with the help of
different channels based on distribution in order to earn high levels of profit. The retailers are
able to satisfy the demands of consumers with the help of their effective supply chain. The
fashion retail sector is considered to be the largest employing private sector in the United
Kingdom based on around three million workers who are a part of the industry. The high
profile based organizations that are a part of the industry are able to affect the revenues that
are provided and contribution that is made to the economy of the country (Baumgartner and
Rauter 2017).
Introduction to the company
TK Maxx is the subsidiary of American apparel based organization named TJX
Companies. The organization is based in Framingham Massachussetts. The name that is used
by the TK Maxx is slightly different from that which is used by the American organization TJ
Maxx. The stores of TK Maxx have been opened in different parts of the United States,
Ireland, Australia, Poland. TK Maxx currently operates more than 500 stores all over Europe
and 35 stores are present in Australia. TJ Maxx was established on in Framingham.
Massachusetts in the year 1976 and had changed its name to TK Maxx in the year 1994 in
order to develop its international operations in Europe (Tkmaxx.com 2019).
The opening of new stores of TK Maxx in United Kingdom was reduced in the year
2007. The main focus was thereby placed on the ways by which the company can revamp and
renovate the stores in an effective manner. The old inner city based stores were improved and
revamped in order to improve the experience that is provided to the consumers. The
organization further expanded its operations to other countries like, Netherlands, Germany.

3STRATEGIC ANALYSIS OF TK MAXX
The e-commerce based site of TK Maxx was launched in the year 2009 which had started
initially with the sales of handbags and selling many other accessories as well (Tkmaxx.com
2019).
The pricing policy of TK Maxx is lower in comparison to the competitors that are a
part of the competitive fashion retail based industry (Theguardian.com 2019). The huge
number of stores that have been developed by TK Maxx in Europe are also considered to be
an important factor that can have an impact on the operations and relationships that have been
developed by the consumers. TK Maxx has developed its position in the industry as a
discount store that is able to provide major bargaining options to the customers (Tkmaxx.com
2019). The upmarket based shoppers in UK have also started saving money in the different
fashion products that are offered by a company like, TK Maxx. The success levels of TK
Maxx are mainly based on the levels of discounts that are provided based on different
products (Alyoubi 2015).
Key relevant changes within the UK fashion retail
As discussed by Chernev (2018), the changes that have taken place in the fashion
retail based sector of the United Kingdom will have an impact on the effective operations of
TK Maxx in the future. The company will be able to maintain its operations in the UK retail
sector in a sustainable manner with the help of revenues that have are generated in its future
operations (Theguardian.com 2019). The operations of TK Maxx are based on the physical
stores and the e-commerce platform that is influenced by the changes that take place in
external environment. The PESTLE framework can be implemented in order to analyse the
external macro environment based factors that affect the operations of TK Maxx (Daspit et al.
2017).