BSB106: Analysis of Major Disruption for Cotton On Retail Group

This report provides a comprehensive analysis of the disruptions impacting the Cotton On Retail Group, an Australia-based retail organization. The report identifies technological and legal disruptions as key challenges, including the rise of online shopping and changing legal regimes related to supply chain responsibility. To address these issues, the report suggests strategies such as enhancing social media marketing, developing a supply chain emergency strategy, and identifying backup suppliers. These solutions are expected to impact the company's business model, potentially shifting from a B2C to a combined B2B and B2C approach, and necessitating changes in supply chain management and operational costs. The report concludes that implementing these changes can significantly improve Cotton On's performance and position it for future growth by leveraging social media marketing and adapting to evolving legal and market dynamics.

MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Preferred solution.........................................................................................................................3
Impact on business model............................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Cotton On Retail Group is an Australia based organization which is engaged in retail
sector business. The organization is owned by Nigel Austin, it is mainly getting operated in
clothing and stationery business. The salient brands are Cotton On, Supre, Type, Factorie etc. In
the year 1988 it came into existence very first time. With the progress of time it started
expanding its roots and made the business thrived. The report will be discussing various issues
the organization is facing, sort of disruptions and their natures are to be evaluated. At the same
time the report would also present viable or preferred solutions with respect to the organization.
The solutions shall be argued in order to eradicate the disruptions present in the entity Gao &
Ren, (2020)
In the report disruptions are faced by Cotton On Retail Group has to be taken into focus.
About the disruption some assumptions will be made. Then broad ideas will be presented as
proffered solutions of the perils, and how it could impact the business model which is being
practised at present by cotton retail giant. At the end of the report, a fully fledged conclusion
shall be described highlighting performance implications pertaining to the changes.
MAIN BODY
Disruption
The term Disruption refers to the things that are disrupting the smooth functioning of the
business. In context of business, disruption can be defined as a change in the way business
operates. Innovation in the industry that affects the successfully established business or in some
cases even replace it. An after affects of Innovation in the industry is viewed as Disruption. It has
been also looked as a process in which new business enter the market and challenge the renown
business. For instance, the innovation of laptop has disrupted the industry who are
manufacturing computers. They are varied in nature and fall under Political, Economic, Socio-
cultural, Technological, Environmental and Legal Disruption (Trabucchi, Talenti and Buganza,
2019).
The organisation can fight with disruption only in case of regular updating their ideas in
response with demanding needs of the market. Thinking out of the box leads to innovation
wherein it target the unturned stones of the industry by offering new solution to the old problem.
The Cotton On Retail company is identified to suffer from Technological and Legal
Disruption. Technology is playing a vital role in any business which has lead few businesses into

the state of disruption, wherein one need to modify their business according to the current
necessity of the market. It has improved the life of potential customers but not for the
organisation (Cozzolino, Verona and Rothaermel, 2018.).
In today's time, when half of the customers has replaced offline shopping to online,
technological enhancement is the demand of a hour. With the advancement in technology, every
individual is identified to own a smart phone, which has changed the way how shopping looked
like in ancient time. Example include going shop to shop in search of the desired product earlier,
sales have different challenges now. Buying habit of the buyer is substituted by the online
buying.
Another Disruption that is observed in the cotton On Retail company is the Legal one.
The fact is law function is beyond the reach of the company. Now a days the government is
emphasizing more on the fact that without meeting to the environmental needs of the country, the
company can not operate and is liable to bear the consequences. It is timely amended by the
concerned authority taking into consideration the benefits that will be reached to the customers,
society and even to the country (Xu and et.al., 2020).
Taking into consideration that the action of their supply chain is the social responsibility
of the company has been challenging. Formulating a supply chain that emphasize on the
sustainable development of the company. As an established company, the focus need to be
shifted on creating more environmental friendly supply chain. Monitoring the supply chain in
terms of proper following of government guideline to reduce waste, pollution due to the
transportation and the company is held responsible for their action can be turn out as a Legal
disruption for the company.
In aiming the proper functioning of the supply chain, the organisation has to ensure that
the suppliers adhere to the sustainable practice.
Preferred solution
One of the biggest issue found in the organization is technological advancements which
are somehow affecting the level of efficiency business holds. As it has been seen that with the
progress of time Technological developments are placing bigger challenges. Next generation
wireless system is affecting efficiency.

The key competitors are Lucky Brand, Forever 21, George at Asda etc. they are using
new technology to the fullest extend. So here the organization is suggested to hike its social
media marketing plan. The peril can be wiped out with new and drastic social media marketing
plan. It will help to communicate its ideas faster and will be able to grab bigger market share. It
is already engaged in social media marketing yet the efforts can be augmented to grab further
advantages Farrelly & Tawfik, (2020)
The organization is having around 570 stores so here it is recommended to hike its online
presence rather than such stores. If it can sale out products on online platforms then would be
able to reduce the cost factor, and can also reach to the customers sitting in different corners of
the world. This may be taken as a viable idea to bring efficiency. Now all key competitors are
avoiding such traditional system of running business so the entity may go with the new idea
Remko, (2020)
One another disruption is changing legal regimes. It may also affect the level of
efficiency business is having now. In Australia now such organizations are responsible for
actions of their utter supply chain. The regimes are contradicting with the organizational benefits
since after Covid-19 the global supply chain is already struggling. Now with such actions it
could be a radical driver and can impact organizational efficiency.
To meet this issue there are some strategies can be used. The best plan would be
articulation of organizational supply chain abiding with global norms. Specifically after Covid-
19, the need has been felt by various entities so with this regard, “Supply chain Emergency
strategy” can be made. This plan will help to come out of this ditch and paving way for success.
This plan is quite rational, for example- In the year 2021 USA faced issue of supply chain
disruption and it affected entire market just days before 25th December Weng & Mansouri,
(2021)
Identification of Backup Suppliers may be another strategy to cope up with the legal
issue. If there are some backup suppliers then in such horrendous circumstances process can be
kept uninterrupted. The plan is intensively rational since now in such fast going market dynamics
having only Plan-A may create catastrophe any time so for expelling such jeopardy there is need
to have a back up plan.

Impact on business model
The present business model of Cotton On Retail Group is B2C and based on both
conventional and non conventional marketing efforts. But if it complies with the solutions
suggested above then there will be some impacts on its business model.
If to eradicate technological perils it installs social media marketing strategy then the
pattern of B2C may get compromised. This may get form of B2B and B2C at the same time.
Because, if the organization notches up its higher presence on social media then may get driven
to do business with some other business too Farrelly & Tawfik, (2020)
Dependency on social media platform will make some significant changes in the business
model. Now it is having more than 500 stores across the world but due to this plan this prevailing
model will get changed. As it can be seen in so many organizations by using social media
platforms they re-fabricated their business model. It can bring new business strategy to operate
business.
Due to legal changes the idea of fabricating new supply chain strategy for emergency will
be changing business model. Now the organization is having its conventional strategy where
traditional form of supply chain is being practised, but the suggested plan will make drastic
shuffles in the policies of the organization. The plan of keeping backup suppliers will hike the
operational costs. At present there is no such mechanism in the organization but the plan will
bring it in Brougham & Haar, (2020)
Cotton On Retail generally uses different social media platform for its marketing yet
paying equal attention to the conventional approaches. It believes that if customers are coming to
stores and making purchase then it gives them higher value and sense of superiority which
ultimately drives them to be loyal customers. Their real time feedbacks can be acquired but with
the changes it may make to eradicate the prevailing perils will change the present business
model.
The present business model where organization is using both digital platforms and
physical platforms to carry out its business, but due to the strategies it will get moulded. The
buying process which is prevailing at present accentuates on buying on the stores where
customers check out different products and as per their suitability they make purchase Bessant &
Watts, (2021)

With the suggested plans this model would not be lasted for longer and will be replaced
with new set of practises. It is utterly justifiable because with the changes in the market
dynamics the organization can not rely on the same set of practises and approaches. There are
rigours need to make some changes which may revert best to it.
CONCLUSION
If the changes are implemented then there will be drastic results before the organization.
It is already having great performance in the market. At present the entity have its presence in a
range of nations. It is generating growth of around 6% per annum. So here it can be concluded
that with such mammoth performance the organization can drive higher in the upcoming time.
The entity is already depended on social media platforms for marketing purpose but
keeping technological changes in mind the idea was proposed to bring social media marketing
concept to the fullest extent. It will be paving way to be a global brand with faster incentivize. It
the future it can be seen trading across the globe with wider diaspora. Now the organization is
active in many nations. For example- Having more than 288 stores in Australia, 126 stores in
New Zealand, 154 stores in North America and Europe, but by analysing the data it can be seen
that the main area of serving is limited up to a few nations.
At the same time, key competitors are working in a range of countries with full capacity
due to their well-structured approach. Here it can be said that if it abides with the suggested plans
then in upcoming years the organization will also experience its heavy presence on social media
platform.
The change in term of supply chain was suggested considering the prevailing political
disruptions in the nation. The organization is also working in a range of different countries so it
may face issue of supply chain. With this regard some ideas like making Emergency supply
chain strategy and keeping some backup suppliers etc. were extended.
If Cotton On retail group go with this change, then definitely get upper hand in upcoming
time. The tendency is very much clear, it is planning to expand its wings across the globe.
Throughout the decades the organizational growth and expansion are sufficed. Here it can be
concluded that in the upcoming time with such drastic approach it may augment its performance.
The new supply chain policy will help to eradicate the threats coming due to legitimation
but it will make it ready to face situations like Covid-19 when the world faced obstacle of

disrupted supply chain. So the entity would be able to take advantage of such predicaments and
also can boost up its operational efficiency.
So overall it can be concluded that the above suggested changes to mitigate impacts of
disruptions both technological and legal can be sorted out by making required changes in the
business.
REFERENCES
Gao, H., & Ren, M. (2020). Overreliance on China and dynamic balancing in the shift of global
value chains in response to global pandemic COVID-19: an Australian and New
Zealand perspective. Asian Business & Management. 19(3). 306-310.
Farrelly, M. A., & Tawfik, S. (2020). Engaging in disruption: A review of emerging microgrids
in Victoria, Australia. Renewable and Sustainable Energy Reviews. 117. 109491.
Weng, E., & Mansouri, F. (2021). ‘Swamped by Muslims’ and facing an ‘African gang’problem:
racialized and religious media representations in Australia. Continuum. 35(3). 468-486.
Brougham, D., & Haar, J. (2020). Technological disruption and employment: The influence on
job insecurity and turnover intentions: A multi-country study. Technological
Forecasting and Social Change. 161. 120276.
Bessant, J., & Watts, R. (2021). COVID, capital, and the future of work in Australia. AQ:
Australian Quarterly. 92(1). 20-28.
Farrelly, M. A., & Tawfik, S. (2020). Engaging in disruption: A review of emerging microgrids
in Victoria, Australia. Renewable and Sustainable Energy Reviews. 117. 109491.
Remko, V. H. (2020). Research opportunities for a more resilient post-COVID-19 supply chain–
closing the gap between research findings and industry practice. International Journal
of Operations & Production Management. 40(4). 341-355.
Cozzolino, A., Verona, G. and Rothaermel, F. T., 2018. Unpacking the disruption process: New
technology, business models, and incumbent adaptation. Journal of Management
Studies. 55(7). pp.1166-1202.
Xu, S. and et.al., 2020. Disruption risks in supply chain management: a literature review based
on bibliometric analysis. International Journal of Production Research. 58(11). pp.3508-
3526.
Trabucchi, D., Talenti, L. and Buganza, T., 2019. How do big bang disruptors look like? A
business model perspective. Technological forecasting and social change. 141. pp.330-
340.