David Nieper: Mega Trends, Porter's Analysis, and Value Chain Review

This report provides a comprehensive analysis of David Nieper, a women's clothing company, focusing on its strategic positioning, competitive environment, and operational efficiency. The analysis begins with an overview of the company, highlighting its £12 million turnover and its focus on innovative and fashionable clothing. The report then applies Porter's Five Forces framework to assess the competitive intensity within the fashion industry, examining factors such as competition, the threat of new entrants, supplier power, customer bargaining power, and the threat of substitute products. Furthermore, the report explores David Nieper's Segmentation, Targeting, and Positioning (STP) strategies, considering geographical and demographic segmentation. Finally, the report utilizes Porter's Value Chain to analyze the company's primary activities, including inbound logistics, outbound logistics, marketing and sales, and production, to understand how value is created and delivered to customers. The report aims to provide a detailed understanding of David Nieper's business model and its strategic challenges and opportunities within the fashion industry.

Mega trend of David Nieper
David Nieper is the small enterprise which
works as to provide Women's clothes on
global level, for improving and optimizing the
fashion clothing services. The £12m turnover
company, which manufactures nightwear for
the over-40s, has just notched up its best ever
monthly sales revenues without cutting prices.
The company is aiming into creating the
innovative and highly fashionable clothes
according to the new trends which would be
quick and easier for customer.
STP
Developing opportunity management in the
business it is the important part because
opportunity creates the advantages and it
helps to lead the market share and
profitability of the firm. Therefore, a new
opportunity gives the direction that how to
manage the activity within the business
environment which creates the high demand
of the product.
Segmentation— Segmentation can be
defined as that segmentation distributed the
Porter five forces
Competition in the industry — under the
fashion industry there has huge competition in
the market. So, David Nieper affects due to
high competition it can reduce the
performance of the firm because firm
purchased the clothes with high branded firm.
Therefore, huge competition is increase the
prices of the clothing product.
Potential of new entrants into the industry
— Threat of new entrants affects the
profitability of the firm. The differentiation
and quality on product is also affects the
demand of the product. The new entrants
easily set up their distribution channel which
can easily set up their distribution channels
and come into the business.
Bargaining power of suppliers — The high
number of supplier in the fashion industry it
creates the low bargaining power. Thus, the
customers are easily switch suppliers due to
less differentiator product.
Bargaining power of customers — in the
fashion market there have huge customer and

market on the basis of different Margaret
segmentation. In other words, market
segmentation is described that how firm can
use this tool in the business to divide the
group of customer into different
characteristics such as— age, income, life
style, living of standards, behaviours,
preference, taste, culture etc
Geographical— David Nieper target their
customer on the basis of geographical
boundaries like needs, preferences, and
interests that differ according to their
geographies.
Demographical— this is another
segmentation firm target their customer on the
demographical basis. This segmentation
includes the different types of factors such as
age, education level, potential income of
customer, family size, race, gender,
occupation.
Targeting- David Nieper targets the low and
high income group of customer who easily
purchase the clothes as they target the
the bargaining power of customer is high.
This is the biggest threat for the David Nieper
because customer easily switches the product
due to low prices of competitors.
Threat of substitute products — in the
market the threat of substitute product is also
high because there has lot of small enterprises
who provides the rented clothing services to
the customer. Thus, this threat is created the
negative impact on the performance of the
firm.
Porter value chain
Porter value chain is a most important tool
which set the activities of the firm. It
describes that how to improve the value of the
product by manage all the internal
departments of the firm.
Primary activity includes the inbound
logistic, outbound logistic, production,
marketing and sales.
Inbound logistic — this activity is managed
the raw material and distribution activity of
the David Nieper such as receiving, storing,
and ingredients of raw material etc.
Outbound logistic — this activity is managed
the delivering and supply process of product
and service. Firm manage their process of
delivering the products and services to the

different age group of customer like children
(5 to 12), Teenage (12 to 18) and adults (21 to
30. Thus, firm targets this customer for their
product.
Positioning- Because the price of product is
low when firm launch the product in market.
Thus, to attract the customer firm uses the
social media marketing and advertise their
product in these websites to enhance the
demand of the product.
customer.
Marketing and sales — These processes
includes the marketing services such as
putting the products and services in the
markets including promotional and pricing
strategies and managing customer
relationships
Production — this process is managed the
production activity such as ordering the
clothes accordion to the new trends and
demands of the customer.