BBS003-1: Dr. Martens Business Analysis and Strategic Recommendations

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This report analyzes the competitive position of Dr. Martens, a UK-based shoe and clothing retailer. The analysis explores the company's business problems, including the need for product innovation, competitive advantage, customer satisfaction, and the establishment of convenient consumer channels. The report examines the impact of potential strategic solutions, such as investing in e-commerce, diversifying customer demographics, launching online competition strategies, conducting market research, and examining business strengths and weaknesses. The paper also provides recommendations for Dr. Martens to maintain a competitive advantage in the footwear industry, including leveraging online platforms, understanding customer preferences, and focusing on product quality and innovation. The report concludes that innovation and investment in new technologies are major drivers for business success, and Dr. Martens should focus on customer satisfaction, high-quality products, brand creation, and understanding the industry to maintain a competitive position.
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Running head: FOUNDATIONS OF BUSINESS COMMUNICATION 1
Foundations of Business Communication
Student
Institution
Date
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FOUNDATIONS OF BUSINESS COMMUNICATION 2
Part 1: Business Analysis
Introduction
The current business environment is highly competitive. According to (Brenden, 2018, p.
6), profit making is a common objective for starting all businesses. The Footwear industry is
highly competitive and has numerous players all over the world. The fashion industry and market
is growing day by day, with companies getting stronger and stronger. This indicates that every
player in the footwear and fashion industry must be innovative, aggressive, and efficient in its
operations. Studying business trends, implementing aggressive strategies, remaining focused on
operational efficiencies, enhancing stronger direct-to-consumer channels, product innovation,
and customer satisfaction are the main drivers of success in the footwear industry (Ajitabh &
Momaya, 2014, p. 14). This paper explores the competitive position of Dr. Martens, an English
shoe and clothing retail.
Summary of Business Case Company
Dr. Martens is a UK based shoe and clothing retail established in 1901. As a designer,
manufacturer, and supplier of footwear and accessories, Dr. Martens offers premium footwear
brands with a unique British heritage (Weresh, 2018, p. 6). Other products manufactured and
sold by Dr. Martens range from footwear, accessories, parses, leather bags, wallets, and boots.
Today, Dr. Martens employs approximately 1,300 people and is ranked number five (5th) among
the leading shoe and clothing retailers in the country. The company generates $207.5K in
revenue per employee, and its current estimated revenue is $269.7 million. The top competitors
of Dr. Martens are LVMH, Burberry, Chanel, Base London, Prada, and Bogs Footwear among
others (Weresh, 2018, p. 9). The company focuses to expand its shoe and clothing business to
many English-cities as possible, and this is what the management believes would make Dr.
Martens remain relevant and competitive in the footwear industry.
Exploration of the Business Problem
Dr. Martens is enjoying the benefits of the recent introduction of Vegan range. A 70
percent increase in profits after the introduction of a single brand is not a small achievement.
This indicates that the company is now letting trends propel it forward. Dr. Marten’s business
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FOUNDATIONS OF BUSINESS COMMUNICATION 3
problems range from the need for product innovation, introduction of aggressive business
strategies, achievement of operational efficiencies, customer satisfaction, and the establishment
of convenient consumer channels. The need to address all these problems is aimed at creating a
competitive position, advantage, and sustainability in the shoe and clothing industry. According
to (Ajitabh & Momaya, 2014, p. 19), the competitive position of a company is measured by what
it does to meet market needs, and not by the profits it makes.
As aforementioned, the top competitors that are giving Dr. Martens sleepless nights are
LVMH, Burberry, Chanel, Base London, and Prada. While the shoe, clothing, and fashion world
is fully of tech trends, technology is sometimes expensive for Dr. Martens. The company is at the
pressure to increase and maintain product quality, the pressure to innovate new, durable, and
attractive shoe and clothing brands, and the pressure to remain relevant and competitive in the
market (Barney & Hesterly, 2017, p. 78). As a result, the 70% increase in profits on introducing
Vegan rage has been realized on great sacrifices. There are pressures from bootmakers that Dr.
Martens is sacrificing quality and offshoring production to chase profits. This is another problem
that the company must solve. So, the business problems are obtaining competitive advantage
over rivals, enhancing customer satisfaction and products quality, meeting market demand,
maintaining profit making, and remaining aggressive in the shoe and clothing market (Chen &
Liang, 2014, p. 88).
Impact of Potential Strategic Solutions Supported by Academic Research
Currently, Dr. Martens is under pressure to meet customer demand, cope with the stiff
competition in the market, war supporting imagery, and the production of quality, durable, and
unique shoe and clothing brands (Davies, 2016, p. 52). However, the company is able to
manufacture diverse styles of shoes, boots, sandals, and footwear; durable, sexy, reliable, rock
and roll tinted a military punk honesty, and advantage of the DM brand. Recently, the
introduction of Vegan rage saw the company have 70 percent profit increase. There is thus the
need to introduce new strategic positions in order to remain relevant, competitive, and
sustainable in the market:
Invest in e-commerce/ online shopping: The top competitor of Dr. Martens, LVMH, has
thrived a lot from online commerce. Despite the innovation of new brands like Vegan range, the
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FOUNDATIONS OF BUSINESS COMMUNICATION 4
company should go an extra mile to attract online competitive force against the rivals. The use of
e-commerce will position the company a better edge for more customers (Joel, 2020, p. 66). This
would work well if the company creates a system for customers to place orders online and
receive the same orders within 1-2 days from the time of order. Other companies go for 3-5 days
for order processing and delivery, creating a timely online delivery mechanism would help
Martens increase sales.
Diversify customer demographics: Strategically, Dr. Martens needs to diversify its target
market and existing market demographics in terms of age, gender, and economic levels (Lewis,
2020, p. 2). Currently, the company manufactures and sells shoe and clothing products to
customers whose age range from 16-32 years old. Strategically, broadening the market
demographics to make and sell footwear products for all ages starting from 4 years to people
aged 70 years or more would improve profits and market base for Dr. Martens.
Launch online competition strategies with a differentiation: Dr. Martens must not ignore
the impact of online marketing via social media platforms in the promotion of existing and new
brands/ shoe and clothing products (Radaelli, et al., 2016, p. 40). The company should post
videos on YouTube channel to capture the youth’s attention. Cooperation with YouTube, Dr.
Martens would reap the highest subscribers and hence broaden its target market. According to
(Weresh, 2018, p. 12), YouTube, Facebook, and Instagram propagate high brand awareness and
brand exposure. This strategy is very cheap and again gives the company a competitive
advantage over its close rivals.
Market research: Shoe and clothing retailers target the immediate customers, and their
success in external marketplace depends on the success they make in their immediate market
places. Fans and customer loyalty helps a company grows up with the brand while making more
sales, profits, and relevance in the market (Wilson & Popp, 2017, p. 22). Thus, Dr. Martens
should collect customer information surrounding their tastes and preferences, their perceptions
on its shoe and clothing brands, the type of brands it needs to produce, and their opinions over
what it charges them on their brands. Listening to the customer means improvement of sales, as
customers will be more satisfied with the company’s products, services, and prices (Radaelli, et
al., 2016, p. 36).
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FOUNDATIONS OF BUSINESS COMMUNICATION 5
Examination of business strengths and weaknesses: According to (Lewis, 2020, p. 86),
examining the strengths, weaknesses, opportunities, and threats of your business helps
understand which areas require strategic improvement in order to create a competitive advantage.
For Dr. Martens, improving customer service and satisfaction level would help acquire a
competitive advantage. Also, the company needs to launch cheaper alternatives by other brands
by providing the same plus more variations for less (Barney & Hesterly, 2017, p. 17). By this
doing, the company would exploit the existing customer and fan loyalty customers have grown
with its brand and hence make more profits and become more competitive.
Conclusion
Innovation and investment into new techs is a major drive for business success and
competitive advantage. A business that ensures customer satisfaction, produces high quality
products, invests more on brand creation, maintains aggressiveness, and understands the industry
where it operates makes more profits, attracts more customers, creates a competitive advantage,
and maintains a reliable and sustainable position in the market. Therefore, Dr. Martens should do
the aforementioned in order to obtain and maintain a competitive position in the UK’s footwear
industry.
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FOUNDATIONS OF BUSINESS COMMUNICATION 6
References
Ajitabh, A. & Momaya, K., 2014. Competitiveness of firms: review of theory, frameworks and
models. Singapore Management Review, 26(1), pp. 45-61.
Barney, J. B. & Hesterly, W. S., 2017. Strategic management and competitive advantage:
Concepts and cases. 4th ed. Upper Saddle River, NJ: Prentice Hall.
Brenden, G., 2018. An Abridged History of Dr. Martens. Dry Clean Only, 7 March.pp. 1-11.
Chen, S. L. & Liang, A. A., 2014. Cause mapping of simple and complex marketing strategies.
Journal of Business Research, 67(1), pp. 67-76.
Davies, C., 2016. Smells like teen spirit: Channelling subcultural traditions in contemporary Dr
Martens branding. Journal of Consumer Culture, 16(1), pp. 192-208.
Joel, G., 2020. 7 Strategies to Define your Competitive Advantage. Executive Coaching Journal,
4(2), pp. 7-15.
Lewis, M. R., 2020. How to Gain a Competitive Advantage in Business. Examining your
Business, 1(1), pp. 4-8.
Radaelli, C., Sorlini, M. & Boer, C., 2016. A laboratory for industrial research on mass
customisation in the footwear industry. International Journal of Mass Customisation, 1(4), pp.
492-506.
Weresh, S. P., 2018. Sustainable Advertising Represented in a Creative Brief for Dr. Martens.
Eugene: University of Oregon.
Wilson, J. F. & Popp, A., 2017. Industrial clusters and regional business networks in England,
1750-1970. Abingdon: Taylor & Francis.
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