Strategic Management Report: Analyzing Superdry's Corporate Strategies

This report provides a comprehensive analysis of Superdry's strategic management, examining its corporate strategies, business portfolio, and international expansion. The report delves into Superdry's current corporate strategies, emphasizing its diversification across various nations and its vertical integration approach to manage its supply chain. It explores instances of horizontal integration and details the company's growth through mergers, acquisitions, and alliances, including its expansion into international markets. The report also analyzes Superdry's product diversification, including horizontal and vertical diversification, and discusses the significance of joint ventures and corporate political activity in its expansion. Furthermore, it recommends strategies for product diversification and internationalization, and concludes with an examination of Porter's generic strategies, including cost leadership and differentiation strategies, to assess Superdry's competitive advantages and market positioning.

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Part 1.......................................................................................................................................3
Part 2.......................................................................................................................................6
Part 3.......................................................................................................................................9
REFLECTION...............................................................................................................................15
CONCLUSION..............................................................................................................................16
REFRENCES.................................................................................................................................17
Books and Journal................................................................................................................17

INTRODUCTION
Strategic management is the continuous process of planning, analysing and monitoring
all the requirements of the company in order to accomplish the goals and objectives of the
company. Strategic management caters entire directions by generating plans and policies which
is generated for accomplishing the objectives and goals of the company. This report is going to
discuss about Superdry company which is founded in 1985 by Julian Dunkerton (Conejero and
CÉSAR, 2017). This report is going to evaluate and analyse the current corporate strategies of
the company. Also going to discuss about the business strategies which is adopted by the
company in order make them effective and grow in the market.
TASK 1
Part 1
The company’s current corporate strategy.
Yes the company Superdry is diversified in the various nations. As superdry company has gained
so much popularity and recognition in the UK. Superdry is multinational company and more
affordable brand as compared to other brands. The business superdry is floated on the London
Stock Exchange in march 2010. Vertical integration is a plan of action or strategies where a
superdry control and owns their provider and investor in order to manage and handle the supply
chain (Andreeva and Kianto, 2016). The company superdry is vertically integrated because as it
allows the company to control the procedure, and also minimise the cost and develop or improve
the efficiency. There are instances of horizontal integration and which are mentioned below:
Firstly, horizontal integration advert to merger of two or more organisation that work and
operate on same level in the production chain. For example: Merger of Marriott and Starwood
hotels in 2016. The merger of The Walt Disney company with 21st century Fox in 2017.

How has the company grown?
 Superdry company is very dedicated and selling superdry goods. In march 2010, the
company superdry successfully flotation on the London stock exchange in order to
introduce the further stage for their growth and development or for the expansion (David
and David, 2017). The company superdry has gained several opportunities to gain
popularity and recognition in the UK and then underpins the development and growth of
the business.
 A merger term advert to an agreements when two organisation join together in order to
form one company. There are several types of merger which is considered by the
company in order to do the merger. Horizontal merger, in this merger among the
companies which are in direct competition with each other in context of market and
goods lines. Vertical factor, in this a merger among the organisation which are along the
similar supply chain. Market – extension merger, in this , a merger among the
organisations in various market where they trade same types of goods and services.

Acquisitions: The company super dry also adopted acquisition concept in order to grow and
develop their business. In February, 2011, the company superdry announced the acquisition of
their France and Benelux franchise and distribution partner(Doval, 2016).
Alliances: An alliance is a connection between the individuals , groups, states which have united
or connected together for the mutual advantages and in order to accomplish common aims and
objectives. In 2013-14 according to their European growth strategies, The organisation superdry
bought out their partners in Germany, Spain and Scandinavia in 2013 and introduce a store in
Munich in 2014. The company Superdry sold in 157 nations via their own websites, networks,
outlets, franchises and many more.
International business how it helps the business
International business raise the competition level in the domestic industries and
considered the new possibility and opportunities. This also helps and support the company to
raise the revenues of the company and also support the company to decrease the competition. It
will also make easier flow of cash management. Its also help the company to maintain and
minimise the risk factors which is connected or link with political factors, environmental factors.
This also raise and enhanced the reputation of the company (Ferlie and Parrado, 2018). By
following these acquisition, the company superdry bought out their US licence partner 10. In
march 2015, superdry, acquired and gained the sole rights to shell out superdry goods in North
America. Expanding their business in other nations will support them to boost and upgrade the
reputation and image of the company.BY operating on the international level the company
Superdry gained popularity and recognition in the market of UK and also raise their possibilities
of development and growth. Also the organisation Superdry follow few models which give
permission to the company to expand their business rapidly and improve the brand awareness ,
consciousness among the industry and also helps them to gain market share.
How would you define the company’s business portfolio?
Product diversification helps the company to increase the utilisation of resources in a very
effective manner. Also this caters a motion from the activities that may be declining. There are
few types of product diversification and these are : Horizontal diversification, vertical
diversification (Heidari and Valipour, 2017). Vertical diversification is also called as vertical
integration and horizontal diversification is also known as horizontal integration. In this

diversification an organisation expands or spread their goods or business in the forward
directions.
A joint venture is business entity which is made by two or more than two parties. The term Joint
venture is characterised or defined by common and divided ownership, governance, ownership
etc. In march 2010, The company undertook a effective floatation on the London Stock
Exchange in order to introduce the further stage for their growth and expansion. In July 2015,
Superdry company comes into a 10 year joint- venture with the company Trendy International
Group. This is an experienced Chinese retail operator (Jbarah, 2018). The Joint Venture was
defined in 2016. The company has 41 franchises and 25 owned stores and outlets in China. By
Joint Venture, the company has entree to come into fresh market. This also make the company
effective and raise or increased the capacity. Joint venture also make them easier for them in
order to share the risk, cost, with their partner.
Do you think that corporate political activity (CPA) was important in their expansion to new
countries?
The corporate political activity is explained as The attempts and efforts which is done by
them in order to modify and shape the government policies which are favourable in context of
the organisation. Corporate political activity is run by the abilities of corporate political. These
activities collect and gather the bundle of resources which help the company to develop and
perform with effectiveness. This political activity mainly focuses on activities as compared to
goods and services(Kim, 2020). This political activity shows the efforts to entrée in the public
policy domain at the level of local or state , national,and the regional or global level in order to
accomplish or achieve corporate aims and objectives.
Part 2
Use product diversification and internationalisation
Product diversification: Product diversification is a strategy in which a company raise and
increase the profitability and also increase their efficiency. This concept represent the how a
company use and applied their resources and assets in order to increase the profitability and also
to accomplish their targets and goals(Minà and Dagnino, 2016). Diversification in the
organisation occur at the level of business or at the corporate level. Example of product

diversification is: The way in which a goods is bestowed can be modified in order to make it
accessible for a different consumer or audience. Superdry is emphatically a diversified
organisation. The company offering a goods embrace virtually any requirements in their clothes
and other goods. Superdry apply their diversification to circulate uncertainties and also to
provide opportunities in order to increase the profitability.
Recommendation:
 The company is required to use product diversification because it helps the company to
minimise the risk factors by assigning investments across the several financial tool.
 It also allows the company to produce more variety of the goods so superdry can satisfy
the needs and requirements of the consumers.
 It also recommended to the superdry company that excessive use of production
diversification can lead to poor performance and lack of concentration. Because as it is
too much complicated process or method.

Internationalisation
Internationalisation is a procedure of raising engagement of company in international or
multinational market (Nadikattu, 2020). International concept describes the formulation of the
goods in that way it can acquired or consumed by the several nations across the globe.
This concept is applied by the company in order to analyse and reviewing their planetary
footmark beyond their personal national marketplace in order to analyse and understand the taste
and behaviour of the consumer across the world. As they are from different nations and culture
so its is very obvious that they have different taste and mind-set. Its helps the company to
develop and improve the academic quality and performance.
Recommendation:
 As the organisation superdry is operating on international level so its very required from
them to avoid the language barrier and cultural differences so that they can expand more
and also increase the profitability.
 As they are expanding themselves across the globe So this international expansion give
or offer a possibilities or chances to enter in new market and reach with more consumers.
So its much required for them to adopt and acquire best strategies in order to operate
effectively.

Part 3
Porters Generic strategies
Porters Generic strategies define and explain how a organisation can acquired and gain the
competitive advantages on their selected market area. It is very required for the company to
coordinate and follow this plan of action for their growth and development(Njue and Ongoto,
2018). This model is also applied to improve and develop the competition level in the market and
also help the company to identify the effective strategies for the company.There are four generic
strategies which are considered by the this strategies and which are mentioned below:
Cost leadership strategy
The porter’s strategies are the path or the way to increase and acquired competitive
benefits and advantages. There are two major ways of accomplishing the goals with the use of
cost leadership strategies:
 This will increase and raise the profitability by minimising the costs at time of
charging normal and average price.
 This also raise the market share by charging low cost.
In this strategy the leader of the company focuses on the cost part. This model is help the
superdry company to minimise the cost and price of production and also delivered prices of
products and services. There are different methods or concept where an organisation can
accomplish their aims and objectives. Also, minimise their cost. If the organisation Superdry

wants to applied this scheme and plan of action, then they have to become much capable to
analysis and approach the leaders and respective which are required to expend in technologies.
Differentiation strategy:
This strategy include making the goods and services which is unique and rare from the
other competitors. To make more success and create effective strategies and good, they are
required to do effective and good investigation and also do innovation and development. They
also have to use effective strategies for sales and marketing so that the industry can analyse and
understand the advantage which is offered by distinguished offerings. This strategy also caters to
company to represent the rare and unique goods in front of the consumers (Shawyun, 2016) .
They are also required to apply and use various kinds of strategies and services that support the
company to create more customer base and attract more opportunities.
Cost Focus Strategy: Organisation which applied and use the focus strategies for understanding
and analysing the dynamics of the market and in order to accomplish the requirements and needs
of the customer to develop low cost products. This strategy is also concentrate on the plan of
actions and strategies which permit the organisation to cater a low cost goods and unique good in
the market. This also concentrating on the specific and targeted market which support them to
minimise and overcome the threats and competition level.
differentiation focus strategy: In this strategy the company and the organisation is focusing on
the create and making unique goods and services in the market so that they can become much
effective and unique. This strategy also helps the company to attract and create wide consumer
base for the company so that they can increase their productivity and efficiency in the market.
This is porter generic strategies use it to write about it
A firm following a cost leadership strategy achieves this objective by building a cost advantage,
or in other words, by keeping its product costs lower than those of an average competitor (Grant,
2016). A low cost strategies can be a risk factor in case of when other organisation or their
competitors also cut down their cost as well. There are various organisation and companies who
follows and focuses on these strategies and also point out several narrow market may be capable
to accomplish lower cost in their segments. Moreover low cost leadership strategies when
connected with low cost can be create impact and bring out disadvantages and affects which is

create and develop less loyalty of consumers. Low prices also can create and develop negative
attitude and behaviour towards the quality of the goods and services in the mindset of the
consumers. According to them when it comes low price, the mindset of the consumer
automatically changed they think when the price cut down then the quality of the goods also cut
down.
Broad differentiation strategy aims to achieve competitive advantage by offering differentiated
products or services to a broad target (e.g. more than one customer segment and/or georgraphic
area). The risk factor which is related with the differentiation strategies contain emulation from
their competitors and modify in consumer tastes. This also include and involve modification in
target segments (Yenipinar and Akgün, 2017). From the investigation it has been analysed that
differentiation strategies is much likely to develop and make higher profits as compared to low
cost strategies because this strategies make a better and amended entry barrier.
Strategies Map: This strategy is visual equipment which is make or designed to
communicate with a strategic planning and also for accomplishing the targeted aims and goals.
Strategic mapping is a major portion of the balanced Scorecard and provide an amended way to
communicate and interact with the better and high level information across the company in an
simple format. This strategy also caters a clean, simple and visual representation which is simply
advert back to. It also supports the company to analyse and identify the key aims and goals. It
also support and help the company to examine how the objectives and aims which are made by
the company create impact on the competitors.

Gap planning: gap planning is a strategy which referred and advert to as need gap
analysis. This also used and applied to compare and analysis where an organisation is working,
where it wants to be. Mainly this strategy is used to identify and analysed the internal
deficiencies of the company.
The company super dry are improving and producing the goods and services and helping the
business by minimising the lead times, and also by producing or generating cutting edge and