Marketing Argos

Topics: Retailing, Strategic management, Management Pages: 12 (4055 words) Published: February 13, 2012
Key development of Argos2
Significance of analyzing business environment3
SWOT analysis5
Limitations and conclusion of SWOT analysis7
PESTEL Analysis8
Limitations and conclusion of PESTEL11

Argos is one of the largest retail stores in United Kingdom which has nearly 800 stores (Home Retail Group website, 2010). Argos is the only retailer in United Kingdom with positive feedback from the customers regarding their sale of products. Argos sells nearly 20,000 different commodities in different sections which are all mentioned in the catalogue (Home Retail Group website, 2010). The catalogues have been provided free to the customers and the customers could order the selected items from home. The products would be either collected from the delivery desk in stores or could be delivered at home. The order could be put to the nearest store through online or phones could bbe also used to complete the ordering process. There are more than 13.5 million customers who shop directly in the stores along with that Argos has nearly 6 million online and phone orders contributing to number of customers purchasing in Argos (Home Retail Group website, 2010). It has been identified that nearly 11.3 million residents in UK has the catalogue provided by Argos (Argos website, 2010). Though the organisation was operating from long time, the sales of the organisation increased drastically from the year 2005 to 2008. The revenue sharply raised from £3652 million to £4321 million. But the rate of growth was very less in the year 2008 and 2009, though the revenue showed increase to £4328 million (Home Retail Group, 2010). The rise in the sales was supported by the increase in the demand for electronics and electrical goods in the market. Wide range of electronic products like video games, PC and flat TV were more selling products. The performance of sales in the furniture section was very poor due to the economic conditions that prevailed in the country (Home Retail Group website, 2010). Key development of Argos

Argos is one of the major retailers in the British market which was launched in the year 1973 by Richard Tompkins. Argos was started with the aim that the customers would be able to purchase from the catalogue provided to them. Te organisation just started with 100 members which made the profit of about £1 million (Argos website, 2011). After six years, the organisation was bought by BAT industries for about £30 million. The organisation was demerged from the BAT industries in 1980. Argos was much similar to the other retailers in the first seven years in the retail industry. In 1980, it opened its new brand for jewellery called Elizabeth Duke. When it was listed in the London stock exchange, the opening price of the share reached £203.5 in 1990. At that time Argos had 457 stores in UK and its revenue was about £2 million (Argos website, 2011). The scale of the organisation has been increased by several folds after Argos has been acquired by Great Universal Stores plc (GUS) in 1998. After the purchase by GUS, it has transferred 33 index stores ownership to Argos. In 1990 another demerging occurred in the Home Retail Group plc. In that Argos, Homebase and its financial services were separated in the London Stock Exchange. It was under the leadership of GUS, Argos has attained the revenue of £1 billion in the year 2008 (Home Retail Group website, 2011). Significance of analyzing business environment

The analysis on the business environment is often carried out in the organisation to identify and analyse the factors that are influenced by the environment that has impact on the business. Mostly the business analysis that is carried out on the...

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