Inquiry Project: Analyzing North Face's Business Strategies and Trends

This inquiry project analyzes The North Face, an American outdoor recreation company, examining its response to current retail industry trends. The project delves into the impact of fast fashion, online retail, and the COVID-19 pandemic on the company's performance. It employs various business models, including PESTLE, SWOT, and Porter's Five Forces, to assess the company's strengths, weaknesses, opportunities, and threats. The project also includes primary research in the form of a questionnaire administered to North Face employees to gauge their perspectives on market trends and challenges. The findings highlight the importance of adapting to changing consumer needs and leveraging strategies to maintain competitiveness in the evolving retail landscape. The project concludes with recommendations for the company to navigate these challenges and sustain its success.

Inquiry Project

Table of Contents
Inquiry Project ................................................................................................................................1
INTRODUCTION...........................................................................................................................3
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................1

INTRODUCTION
Inquiry based project explained as group of students who investigate a worthy question,
problem, or ideas. For each individual it is important to have clear idea and thoughts which can
be used to managing work and increasing productivity. The report discusses about NORTH
FACE organization that is American outdoor recreation company founded in 1968 to supply
climbers (Cantrell and et.al., 2020). It produces clothing, footwear, and outdoor equipment. The
management of such industry analysis the current trends and introduce products accordingly. The
report covers current trends, analysis of organization using relevant business model, and
recommendations on what companies focuses on continuing their success.
Main Body
Current trends in the retail industry, using valid research sources
Theme and Background of company: The selected there is NORTH FACE that is an
American outdoor recreation products company which offers range of products such as clothing,
footwear, and outdoor equipment. The management conduct the environment analysis and bring
new products and services which can help to influence number of customers and attain the
business goals. The aim of each organization is to develop the organizational sales by increasing
number of customers and attain the competitive advantages (Friedrich, 2020).
Reason to choosing theme: In business environment there are many trends which arise
while running a business and it affects the organizational profitability. NORTH FACE is having
solidified presence in market where it follows fast fashion strategies. This will help to increase
the sustainability in environment positively. In relation to selected company it has explained that
following trends are facing by the organization such as:
Fast fashion – In changing environment different types of products and services are
providing by company in order to increase the sales and profitability. Fashion industries are
running fast as it brings the short and long run changes which affects the productivity and
profitability negatively. NORTH FACE is facing the challenge of fast fashion as it is American
company where it needs to introduce the range of products by following the new trends. Primark,
H&M, and Boohoo are other fashion retailer that sales different range of products effectively and
create the competition (Martinsuo and Geraldi, 2020).
Impact of Online retailers – Now people get more aware and educated who used to buy
products and services via online method. Online retailers impact positively on business

organization as it increase their sales and profits faster than brick and mortar. By using online
retailing NORTH FACE can get the opportunity to increase their sales by influencing number of
customers. other side, negative impact is increasing competition as number of retailers turn their
business from offline to online stores which create the competition and might be reduce the sales
and productivity. This also allows retailer to sell their merchandise in any part of world without
additional expenses (Daniell and Mortensen, eds., 2020).
Impact of Covid-19 – This is another trend which is running in whole world and affected
the all businesses whether online or offline. Due to this Pandemic number of death cases are
increasing where people became more health consciousness. The demand of each individual is to
get safe and hygienic products which might be difficult for retailers and other company. This has
impacted on organizational performance negatively as sales started to reduce and trade regulation
also get changed. NORTH FACE is facing this problem due to covid-19 as government has
stopped transportation services which affected the sales negatively (Efstratiadi, Acha, Shah and
Markides, 2019).
From the above discussion it has analysed that a business concern should be aware from
changing environment and needs of customers that can be fulfil by offering range of products
and services. The management of NORTH FACE has faced the trends of online retailers, impact
of Covid, and fast fashion which is reducing sales as well as productivity of organization. The
management plays an important role who follows trade rules which are formulated by
government and difficult to implement in order to continue the business activities. On the other
side, this can be opportunity for organization to develop the business productivity and sales by
influencing number of customers effectively.
Research question and objectives
 What are the conceptual framework of changing trend in business environment?
 What challenges faced by NORTH FACE while operation?
 What strategies can be used by company to overcome the challenges?
Conduct an analysis of that company, using relevant business models.
Primary research: To conduct the market analysis information gather from first hand
resources that can help to complete the project.
Secondary research: When information is collected from existing resources and
managing and managing the project is considered as secondary research.

Uses of market analysis models for selected organization such as:
PESTLE Analysis: This is a framework which use by NORTH FACE in order to conduct the
external environment analysis which explained below:
Political: NORTH FACE is facing the problem of changing regulations and trade policy
which affect the organizational performance negatively (Mathur, 2019).
Economical: The inflation rate of UK are stable that can be opportunity for chosen
organization to sale their products and services in high range.
Social: NORTH FACE is focusing on needs and wants of their customers and provide the
products accordingly which can help to attain the good performance. Moreover, it provides the
hygienic products that ensure customers to get safe food.
Technological: This is important factor which used by NORTH FACE to run their
business by using online store and fast delivery than others that can help to attain the business
goals and objectives.
Legal: The selected company is following all employment regulations and legal
requirement which can help to manage the workings and increase the business performance
effectively (Boardman, Henninger and Zhu, 2020).
Environmental: Climate change, increasing pollution and others aspect might be arise
while running a business that affect the organizational productivity negatively.
SWOT Analysis: This frame is use by organization to know strength and weakness of
organization and complete the objectives effectively. The SWOT analysis of NORTH FACE is
explained below:
Strength Weakness
 NORTH FACE is having successful
trace record in developing new
products.
 High level of customer satisfaction by
offering quality of products.
 This build a culture between distributor
& dealer that promote the products.
 Organizations belongs to different
culture and wants of people.
 High attrition rate in workforce
(Arenas-Jal and et.al., 2020).
 The organization is not able to tackle
the challenges in relation to business.
 Need more research and development.

 Automation of activities that brought
consistency in products and service.
Opportunities Threats
 New environmental policies.
 Online retailer that increases more
customers.
 Focusing on fast fashion.
 Opening of new stores at new location
that increase productivity.
 Using differentiated pricing strategy.
 Growing strength of local distributors.
 Rising raw material cost.
 Changes in currency and environment
regulation.
Porter's five force model: This model is use to analysis the competition and get the
competitive advantages by taking force. It explained below:
Bargaining power of buyers: The power of buyers is low in context to NORTH FACE
as it provides products and services at retail prices with best quality which influence the number
of customers and increase productivity.
Bargaining power of sellers: In the retailing sector bargaining power of seller is
moderate as there are less number of suppliers in UK who charge the different prices from
different customers. This can be affected the organizational productivity and performance.
Threat of substitution: The substitution threat is low as there NORTH FACE is
providing quality of products at lower cost which influence customers and increase the business
productivity (Gerhardt and et.al., 2020).
Threat of new entrance: In relation to retail sector there is low threat of new entrance as
to establish new super market there is need to arrange high amount of investment which is
difficult to arrange the business productivity.
Threat of competitor: Nike, Backcountry.com, Columbia Sportswear, Patagonia, and
canada goose are the main competitor of NORTH FACE that has created the higher level of
competition in running and operating the business regularly.
Thus, by using selected business model it has analysed that chosen is using the different
business model which can help to develop the business in changing environment and attain the

competitive advantages by managing all functions and activities. This also helps to complete the
project timely and increase brand image effectively. Thus by using, questionnaire in primary and
secondary research, data has been collected that supports to manage the activities.
Primary Research
For the present report questionnaire has been sent to 20 employees by online who works
in North Face, that can help to know about current trend in fashion industry and how it followed:
Q1) As per your opinion it is important to know the current trend in
market and fashion industry?
Frequency
a) Yes 17
b) No 3
Interpretation – There are total 20 employees selected to whom questions asked and
answered. 17 out of 20 employees believes that in fashion industry there is important to know
current trend as it develop the understanding what is running in market and how sales cani be
increase. Rest of the 3 employees do not favour this statement.
Q2) what are the current trends that have impacted on performance of
North Face?
Frequency
a) Fast Fashion that is changing rapidly 10
b) increasing the online trend 5
b) Impact of Pandemic and covid 5

Interpretation - From the analysis it can be interpreted that 10 employees said fast
fashion is changing rapid that impacts in organization performance, 5 said Increasing online
trend and buying behaviour impacts, and rest of the 5 said due to Covid-19 North Face’s
performance affected.
Q3) As per your opinion why North Face is using the concept of
sustainable and reliable fashion?
Frequency
a) To minimise the wastages 5
b) For being recycling the clothes and design them 5
c) To maintain the clean and healthy environment 5
d) To increase the productivity and profitability 5

Interpretation – As per analysis it is important for business organization to focus on
sustainability as it increase the organizational performance. Out of 20 equally group of 5
employees said sustainable concept is using by North Face for minimising wastages, increasing
Q4) According to your view does North Face should be follow current
trend and Artificial intelligence ?
Frequency
a) Yes 18
b) No 2

Interpretation – As per 18 employees out of 20 North Face should be follow current
trend and Artificial intelligence that can help to identifying the customer demand and provide the
products. Another 2 employees said to ignore this.
Q5) What are the challenges faced by North Face due to Covid-19 in their
business?
Frequency
a) Increasing organizational sales and performance 7
b) Decreased organizational sale and performance 10
c) No impacts on performance 3
Interpretation - From the analysis it can be interpreted that North Face sales and
performance has been decreased as per 10 employees, another 7 said it has increased sale and 3
said there is no impact of Covid-19 on organizational performance.
Recommendation/ Conclusion
This is important for each industry to start or run their business by analysing needs of
consumers and then provide the products which can provide the satisfaction and attain business
goals. From the above discussion or prepared question it can be explained that environment is
changing day by day where it is essential to know needs and perform their roles by offering
better quality of products and services Answer for research question are explained below:
What is the conceptual framework of changing trend in business environment?

Now a days needs and wants of customers are changing day by day where it is important
to have good knowledge about marketing then provide the products and services which can help
to attain the good performance. As time is changing same as trend also changes according to
time where demand for different products increases. In context to Fashion industry, impact of
Covid-19, fast fashion, and impact of online retailers are considered as main trend which is
pertaining in environment and affected the organizational productivity. The management is
require to evaluate the trends and culture of people and introduce the products which can help to
increase By offering variety of products and quality selected organization can compete with
others easily and develop the brand image.
What challenges faced by NORTH FACE while operation or running business?
The culture and values of any organization is different where it become challenge for
company which type of products should be provided to customers. NORTH FACE is large size
retailing company that faced the challenge of lower sales, employee turnover, customer
dissatisfaction due to changing needs, pandemic situation and new trade regulation that affected
the operation negatively. The management should use their skills and talent in order to complete
task and managing all functions effectively. This can help to increase the business sales and
performance (Lee, Zhao and Lee, 2019).
What strategies can be used by company to overcome the challenges?
Strategies are defined as strong planning which need to develop by responsible person in
order to run their business and grow it effectively. The aim of each industry is to find out the
challenges and make efforts to overcome by implementing the strategies. NORTH FACE can use
marketing strategy, providing differentiate products, low pricing strategy, and motivation which
can be use to solve the problems and increase the organizational sales effectively. This can help
to attain the higher competitive advantages by managing each functions and activities.
Recommendation to resolve issues
It has recommended to retailer to use the effective planning and changing trend analysis
any organization can operate their business effectively. If management is not able to formulate
effective plans then it will be great opportunity for NORTH FACE to influence the number of
customers and increase the organizational sales. By using lower pricing strategy and qualitative
products business can be grow effectively (Fildes, Ma and Kolassa, 2019).

Thus, it has suggested to all retailer to use the new technology and online stores which
can help to develop the business effectively. By analysing needs of customers products can be
provided accordingly which can help to attain business goals and supports to attain the
competitive advantages.
CONCLUSION
From the report it can be concluded that individual have different skills and knowledge
which can be use to analyse the changing trends and provide products accordingly. By
developing the project timely it will be good opportunity for business to complete task. For
conducting research primary and secondary method be use by researcher that can help to get the
conclusion. Different business model such as PESTLE, SWOT, and Porter's five force uses to
analyse business situation and attaining the good performance.

REFERENCES
Books and Journal
Cantrell, J., and et.al., 2020. History and current trends in the electronic cigarette retail
marketplace in the United States: 2010–2016. Nicotine and Tobacco Research. 22(5).
pp.843-847.
Friedrich, D., 2020. How regulatory measures towards biobased packaging influence the
strategic behaviour of the retail industry: a microempirical study. Journal of Cleaner
Production. 260. p.121128.
Martinsuo, M. and Geraldi, J., 2020. Management of project portfolios: Relationships of project
portfolios with their contexts. International Journal of Project Management. 38(7).
pp.441-453.
Daniell, B. and Mortensen, P. eds., 2020. Women and literacy: Local and global inquiries for a
new century. Routledge.
Efstratiadi, M., Acha, S., Shah, N. and Markides, C. N., 2019. Analysis of a closed-loop water-
cooled refrigeration system in the food retail industry: A UK case study. Energy. 174.
pp.1133-1144.
Mathur, P., 2019. Key Technological Advancements in Retail. In Machine Learning
Applications Using Python (pp. 159-181). Apress, Berkeley, CA.
Boardman, R., Henninger, C.E. and Zhu, A., 2020. Augmented reality and virtual reality: new
drivers for fashion retail?. In Technology-driven sustainability (pp. 155-172). Palgrave
Macmillan, Cham.
Arenas-Jal, M., and et.al., 2020. Trends in the food and sports nutrition industry: A
review. Critical reviews in food science and nutrition. 60(14). pp.2405-2421.
Gerhardt, C., and et.al., 2020. How Will Cultured Meat and Meat Alternatives Disrupt the
Agricultural and Food Industry?. Industrial Biotechnology. 16(5). pp.262-270.
Lee, C. H., Zhao, X. and Lee, Y. C., 2019. Service quality driven approach for innovative retail
service system design and evaluation: A case study. Computers & Industrial
Engineering. 135. pp.275-285.
Fildes, R., Ma, S. and Kolassa, S., 2019. Retail forecasting: Research and practice. International
Journal of Forecasting.

APPENDIX
Q1) As per your opinion it is important to know the current trend in market and fashion
industry?
In business environment it is important for business organization to know the current
trend in market as it introduces the different needs of customers which is going to be change as
per trend. For Fashion industry it is important to know what is running in current market and
how its customers can be satisfied which can help to develop the organizational sales and
maintain a strong position in market by offering the range of products and services.
Q2) What are the current trends that have impacted on performance of North Face?
The meaning of current trend is what is happing around and how sales can be increase.
North Face is the larger size fashion industry that needs to deal with current trend as it can help
to increase the organizational sales. The current trends are online retailers, occurrence of
pandemic, and fast fashion changing which encourage management to introduce the new
products and services for the purpose of managing and running their business effectively.
Q3) As per your opinion why North Face is using the concept of sustainable and reliable
fashion?
To run a business it is important is to focus on sustainable activities as it increase the trust
of their potential customers and increase the organizational sales. This also make that
organization is doing for social welfare that can help to grow their business continuously. North
Face is participating in CSR, becoming 100% environmentally friend and reducing the wastages
that can help to maintain a strong position in competitive fashion industry and helps to increase
the organizational productivity.
Q4) According to your view does North Face should be follow current trend and Artificial
intelligence ?
Yes, of course North Face should be follow artificial intelligence and innovation in their
fashion industry as it helps to know what their customers demanding and how they could be
satisfied which can help to introduce the products and services accordingly and helps to increase
the organizational performance and profitability. The management of such organization can
provide the range of product by using AI and new technology which helps to attain competitive
advantages.
Q5) What are the challenges faced by North Face due to Covid-19 in their business?
2

Covid-19 is the very critical situation for all business sector and people as it affected
badly. The people become health consciousness and government declared the lockdown in whole
world for specific period that crated the challenges for North Face to operate and continue its
business. It also has been seen that buyers are not spending o=money in fashion so it
automatically reduced the sales.
3