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Business Strategy
Assignment One

Module Code: ST3S03_2012_V1
Module Tutors: Paul Davies
ID: 11018712
Hand In Date: January 30th 2012

Content
Introduction……………………………………………………………………………….4 1.0 - The competitive strategy analysis for NEXT……………………………………...4 1.1 - Srategic Position Analysis………………………………………………………..…4 1.2 - Competitive Advantage Analysis…………………………………………………..5 1.2.1 - Strategic Groups….…………………………………………………………….…6 1.2.2 - ‘Generic’ Analysis………………………………………………………..…….…7

2.0 - External influences and drivers affecting NEXT……………………………….….8 2.1 - PESTLE Analysis………………………………………..…………………………...8 2.2 Industry Analysis……………………………………..……………………………...10

3.0 - Value Adding Activities of NEXT………………..…………………………………12 3.1 - Resource Audit………..……………………………………………………………..12 3.1.1 - Unique resources of NEXT.......................................................................................12 3.1.2 - Core compentence.....................................................................................................13 3.2 - Value Chain Analysis...................................................................................................13 3.2.1 - Primary activities……………………………………………………………………14 3.2.2 - Support Activities…………….……………………………………………………..15

4.0 - Sustainability of NEXT’s Strategic Position…………………….…………………..16

Appendices…………………………………………………………………………….……17

Reference……………………………………………………………………………………19

Introduction
NEXT is a British retailer marketing clothing, footwear, accessories and home products with its headquarters in Enderby, Leicestershire, England (wikipedia.org, 2011). The NEXT brand itself was created in 1982 and has become a full-line lifestyle brand in its sector (NEXT,2011). The competitive strategy of NEXT which is powerful and reasonable made the company being considered as an aspirational in clothing retail industry. This report will be divided into four major sections which aims to find out the competitive and strategic position of NEXT in global clothing retail industry. The first section will analyze how does the organization compete strategically. Firstly, competitivr strategy analysis of NEXT will be created. After that is the competitive advantage analysis. In section two, key external drivers of change affecting NEXT will be identified. An analysis of wider environment will be provided first which is followed by an industry analysis. The third section will consider NEXT’s key value adding activities. At first, the basic and unique resources as well as competence of NEXT will be identified. And then, a value chain analysis for NEXT will be created. In the final section, a conclusion will be drawn from the whole analysis to discuss the sustainability of NEXT’s strategic position.

1.0 The competitive strategy analysis for NEXT
1.1 Srategic Position Analysis
It is of great importance to identify the company’s strategic position in order to understand the strategy that NEXT employs. Bowman’s ‘Strategy Clock’ (Bowman et al, 1996) is a very useful framework to analyse the competitive strategy position of NEXT to consider the factors of perceived added value and the price of products. Figure 1: Strategy Clock The aim of NEXT is to meet or exceed customers’ expectations and it ensures the quality of products, products are safe and fit for their intended purpose, products fully comply with all legislation and its own standards where these go beyond legislative requirements (nextplc.co.uk, 2011). This suggests that NEXT focuses on manufacturing high quality products in terms of providing more perceived added value to customers. In addition, the company is also committed to operating a successful and responsible business which aims to provide a high level of service to all customers to welcome them to NEXT, wherever they...
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