Topic Chosen and Its context
This research and analysis report explores the impact of e-business on the strategic planning of Next Retail plc. This investigation focuses on the company's growing its business, its operational and financial performance, and the use of e-business in achieving national domination, global expansion and to be able to complete in business world.
The objective of the research is to determine the advantages of e-business to the achievement of Next Retail Plc's strategic objective, and sustainability and to the continuous existence of Next plc as a going concern business, and maintaining its position as a leader in fashion world. The impact of the e-business on the smooth running of the company operations, and its disadvantages to Next Retail plc will also be considered.
Purpose for the topic
My ACCA studies and work experience have increased my interest in Next Retail plc and particular interest in the company's use of e-business in achieving its' plans to develop into a top brand name and become one of largest online fashion retailers. The company will thereby be in a position to cope with competitors on the high street and also with online store like www.asos.com , www.rarefashion.co.uk , www.oli.co.uk, www.bunnyhug.co.uk, www.marksandspencer.com, And the ability to expand to increase the global sales and domestic market share
The selection of topic of E-business can be attributed to the fact that the Internet has played an important role in retail industry in the UK, contributing over £30b in retail sales in 2009, and retail sales fall by -0.7%. (Office of national statistics)
The choice of Next Retail Plc is based on the company's position as one the leading online fashion retailers in the world and among the top ten online retailers in the UK which enables them to complete favourably in fashion retail and non fashion retail.
My interest in the company has also been aroused by its recent expansion to various markets in the world including Asia, Europe and America, its ability to cope during the global financial crisis and maintain its position in the UK retail market and remain in a position to compete with non fashion retail like Argos, play.com.
According to Next (2008) the online business has made significant progress over the last few years achieveing a 2.1% increase in sales and 1.9% increase in the average number of active customers and an 8.4% increase.
Overview on Next Retail Plc and e-business
In 1864,J.Hepworth and Son was founded, and in 1981 Hepworth bought the chain of Kendall's rainwear shop to develop the womenwear store Next PLC which opened on 12th February 1982 and menswear's was introduce in August 1984. In August 1985, Next plc launched the interiors range of soft furnishings for home.
Hepworth's growth during 1864 and 1981 was organic through acquisitions of Kendall chains and in 1986,Grattan plc a mail order company was formed and the company decide to change its name to Next plc.
Next is a UK based retailer offering stylish, good quality clothing items, footwear, accessories and home products. Next distributes through three main channels: Next Retail, a chain of more than 500 stores in the UK and Eire; the Next Directory, a direct mail catalogue and transactional website with more than 2 million active customers; and Next International, with more than 170 stores overseas.
Other businesses in the Next group include:
Next Sourcing, which designs, sources and buys Next branded products; and Ventura, which provides customer services management to clients wishing to outsource their customer contact administration and fulfilment activities Other business(property management)
In January 1988 Next plc recognised the importance of e-business and its advantages by launching the Next directory which now includes over 1200 pages from the 350 pages on introduction and in...