Jessops Strategy Analysis
1. Executive Summary3
3. PEST analysis4
3.1 Political factor4
3.2 Economic factors4
3.2 Social factors5
3.3 Technological factors5
4. SWOT analysis5
5. Porter’s five-forces7
5.1 Threat of new entrants----high8
5.2 Power of buyers----high8
5.3 Bargaining power of suppliers----high8
5.4 Threat of substitutes----medium8
6. Jessops competences9
7. Key environmental and ethical issues10
7.1 Environmental issues----recycle10
7.2 Ethical issues----credit10
8. Different customer segmentation requirements affect business approach.10
9. Jessops strategies11
10. Future corporate strategies12
1. Executive Summary
Jessops is Britain’s largest photographic retailer. The company has maintained the leading position in the market for many years. However, Jessops is now faced with challenges especially due to technical development. This report applies three business models to Jessops’s practice and analyses the internal and external environmental conditions. Compared with its competitors, Jessops is losing advantage in price. This report also examines strategies Jessops has adopted as response and explores effective methods to take in the following decade. Jessops needs to explore new selling points and new markets to expand its market share.
Jessops is the largest photographic retailer in the UK. It has been leading the market for decades. However, in a market that is changing constantly, Jessops has to respond to those changes so as to boost its market share. This report demonstrates the changes that have taken place in the photographic industry and shows Jessops’s position in the market. Also, this report will examine what strategies Jessops should adopt to maintain its dominant position in the market.
3. PEST analysis
3.1 Political factor
Business behaviours sometimes have negative impact on the environment. To remedy this situation, the UK government and environmental organizations have made many regulations. Jessops has to take up its responsibility to obey the legislation. This can be costless but also gain good reputation from customers. The growth of private sector also creates opportunity for Jessops. 3.2 Economic factors
The global economic context is challenging the way photographic business work. As economy goes into deep recession in the UK, people tend to spend less on luxury goods, such as cameras. Meanwhile, the increasing number of retailers has made competition more intense in this industry. In addition, globalisation is making competition increasingly fierce. 3.2 Social factors
Consumers’ tastes and hobbies change constantly in order to keep up with fashions and trends. The youth like to follow the latest trends in fashion while older generations still prefer traditional ways. Computers, mobile phones and ipads are widely used and many programmes such as Facebook are developed to provide people with platforms to share photos. These influence Jessops’s strategies. 3.3 Technological factors
Customer demand for digital cameras and professional cameras is growing. This provides new market for photographic retailers, which is both choice and challenge for Jessops. What also concerns is the way people shop. The rapid development of technology and science fasten the step of expansion of online shops. Evaluation: PEST analysis identifies the recent trend in the photographic industry.
4. SWOT analysis
Internally, Jessops has been market leader in its area. It has a large market share and high customer loyalty. Also, it has advanced managerial ways and expertise in its field. Jessops has a full range of products and diverse purchasing channels. Another strength of Jessops is selling services such as...