...Summary of Recommendations Barclaycard has been the first mover in the UK for credit card services. They have intensely used advertisements as the main method of attracting customers using the message peace of mind to attract their customers to use their cards. However, recently many new entrants have entered the market to drive competition up and reduce the value of each Barclaycard credit cards. The following is a list of recommendations that Barclaycard should implement to remain competitive. 1. Barclaycard can introduce credit cards that have a lower APR to compete with the new entrants. 2. To encourage spending Barclaycard can introduce incentive programs to stimulate spending. For example, they can follow Novus® with a cash back program on spending. 3. Discourage consumers from using cash and a main method of payment. 4. Be the first mover again and introduce other programs that allow a consumer’s life to be easier. For example, they can start implementing services where a consumer can pay with their cell phones using the IR feature, or start emplacing smart card technology in retail outlets as this is seen as the next possible trend in the future. Introduce services that allow consumers to purchase things at home with a touch of a button (internet credit cards e.g. one time use cards) SWOT Analysis*[1] Strengths • Market leadership with a market share of 34% in terms of credit cards issued, and 27% in transaction value. * • Low cost...
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...COMPETITIVE ANALYSIS OF THE RETAIL SECTOR IN THE UK DEPARTMENT OF TRADE AND INDUSTRY: COMPETITIVE ANALYSIS OF THE RETAIL SECTOR IN THE UK Report submitted to The Department of Trade and Industry (Tender CGS/1239) Professors Steve Burt and Leigh Sparks Institute for Retail Studies University of Stirling Stirling FK9 4LA Scotland, UK Phone: 44 (0)1786 467386 Fax: 44 (0)1786 465290 E-Mail: s.l.burt@stir.ac.uk ; Leigh.Sparks@stir.ac.uk Revised for Seminar - January 2003 DEPARTMENT OF TRADE AND INDUSTRY: COMPETITIVE ANALYSIS OF THE RETAIL SECTOR IN THE UK Contents 0 Executive Summary I Background and Framework for Analysis II Competitive Analysis – the UK Retail Sector III Summary and Policy Recommendations IV Appendix – Analysis of Retail Sub-Sectors EXECUTIVE SUMMARY 0.1 Background and Framework for Analysis In early 2002 the Institute for Retail Studies at the University of Stirling was commissioned to carry out a ‘Competitive Analysis of the Retail Sector in the UK’ (tender CGS/1239) based on secondary sources and restricted to the UK rather than international comparisons. The project had three objectives: · to define and map the sector in terms of size and composition of the businesses which operate within it; · to analyse the competitiveness of the sector now through SWOT, PEST and Porter's 5 forces and any other appropriate means and summarise the key issues facing the sector as a whole, and also sub-sector specific issues;...
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...round the globe and have over 78000 personal working in UK and 42 other territories globally. The core values of M&S are quality, value, service, innovation and trust (Marks and Spencer group plc 2011). The group is one of the leading brands in the United Kingdom in the category of clothing, food and home ware. A general SWOT analysis strategy conducted on the company reveals the major areas of concern and attention required for the organisation is given below. Strengths • Strong market position and reputation. In terms of value, volume and reputation, Marks and Spencer is counted as one among the leading retailer company of UK particularly in the clothing segment. The group have large network of stores inside UK and also in international markets. The growth in market performance and leadership in previous years helps the company to enhance its brand image and adds competitive advantage in the international markets. • Worldwide / global expansion to international market. M & S have 361 owned and franchised stores in 42 territories and it keeps improving its international business and thereby reducing overall business risks.. This mix of models and geographic markets enabled the group to perform stable during the period the market witnessed decline in economic growth. International business expands the business of the company mainly with multiple points of sales and increase in manufacturing costs in the UK and this generates higher volume production benefitting...
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...FUTURE SUCCESS IN RETAIL INDUSTRY? A CASE STUDY OF TESCO’S SUCCESS IN KOREAN RETAIL INDUSTRY Dipanjay Bhalerao Assistant Professor, Indira Institute of Management, Pune Email: dipanjay.bhalerao@indiraiimp.edu.in INTRODUCTION Today’s exponentially growing retail market of around USD 15 trillion (2011) is worth watching as lots of new practices and strategies are being adopted by the retailers around the world. Today there is an increasing need for every giant company to look for the emerging economies for growth. But in that growth pursuit are they slipping from the home grounds or the established markets! Also when the retail company enters into new established markets for expansion, they need to do something innovative which also suits those markets. So what should the retailers do to balance the growth of the established & emerging economies for the expansion! What provokes this thought is Tesco’s rare success in the Korean market. Why to call it rare! As Korea is the retail market where the Retail Giants like Carrefour had bowed to the knees in the battle of retail with the Korean retailer E- Mart, Lotte, the Market Retailer of Korea. Knowing such a market back ground Tesco did something, which stormed the market & brought Tesco into the big league of Korea. Before going into what Tesco did, let’s learn about Tesco and the Korean retail battle ground in light of the global retail scenario. Tesco History Tesco was founded in 1919 by Jack Cohen from a market stall in London’s...
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...Xu (10324142)Date: 08-12-11Subject: The relevant company research report of WH Smith plc for recent years. This report consists of financial performances and relevant company analysis. | Title Page Acc2005 Report Summary The report describes the relevant information for the UK biggest retailer, WH Smith plc.The company sells books, newspapers, magazines, stationery,and entertainment products as their main business activities. It is operating the business into two divisions, High Streets and Travel. It covered 0.4 million square feet as travel and 3.0 million square feet for selling space. The company achieved recorded revenues of £1312 million during the fiscal year endedAugust 2010. The year operating profit was£89million in 2010.In contrary, it increased by 7.2% from 2009. The net profit was £69 million in 2007, an increase of 9.5% over 2009.(WH Smith plc, 2010) Also, the financial performances for recent years and company SWOT analysis will also be concluded in this report. Introduction 1) History WH Smith PLC is one of the oldest retail businesses in the UK. The predecessor was Henry Walton Smith and his wife Anna; the company was funded in Little Grosvenor Street, London in1792. After they dead, it was passed to their son William Henry Smith. In 1848, WH Smith opened the first bookstall at Euston Station in...
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...Business Strategy Name Institution Abstract This paper critically analyses the past and the current market trend, operations, and marketing strategies of Sainsbury’s Company. Different models of analysis were employed to clearly understand the current and previous state of Sainsbury’s. Some of these models include SWOT analysis, PEST analysis, CORE analysis, Porter’s Five Forces model, Key Success Factors, and Ansoff’s Matrix These models help in understanding all aspects that play a role for the success and the failures of the company that include its strengths, weakness, opportunities, threats, and several factors that bolster of hinders the success of the company. I also looked at deep analysis of the success of introducing “Dark Stores” in Ireland. It can be concluded from this study that, Sainsbury’s can successfully enter into Ireland market by introducing “Dark Store”. However, the company will likely face some challenges and competition from other companies in Ireland, but it can counter these by employing different strategies recommended in this study. Business Strategy: Sainsbury’s Introduction The task of the strategy is the most difficult and time-consuming part of strategic management. This task runs almost through all levels of management and should be taken into account in most parts of the company. The specific implementation of the strategy begins with a thorough analysis of what the company should do differently and better for the successful implementation...
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...the parental Arcadia Group. Over the latest years, Topshop has been one of the most popular UK’s fast-fashion retailers. The company is a multinational Omni-channel fashion retailer. Topshop is well-known for its high-quality products in medium low prices. The company’s portfolio owns a wide range of products and services. According to the Situational Analysis, the UK’s macro environment has changed over the latest years. The UK’s fast-fashion industry is becoming more and more cluttered with competitors from both UK and overseas. The business frameworks PESTEL, Industry key drives, Industry’s life cycle indicated that the UK’s fashion market is influenced from several external factors. The industry’s key drivers are the Europe’s economic recession, the social-media and e-tail evolution and the environmental crisis. However, the UK’s fashion sector remains a dynamic and innovative sector worldwide. Moreover, the buying behavioral is shaped by the UK’s market trends. The UK’s consumers are driven by the economical and political unstable environment and the digital evolution. The internal analysis indicated that the company is preforming well compared with its competitors. The SWOT analysis presented that TOPSHOP has important strengths and opportunities which could overwhelm the threats and weaknesses. The Porter’s Five forces analysis indicated that the power of buyers and the competitive rivalry are high whereas the threat of new entrants and the power of suppliers are low...
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...CONTENT 1.0 Introduction 1 2.0 Industry Background 2 2.1 Worldwide PC Industry 2 2.2 UK PC Retail Industry 3 3.0 PEST Analysis 5 3.1 Political/Legal Environment 5 3.2 Economic Environment 6 3.3 Social Environment 8 3.4 Technological Environment 10 3.5 Summary 11 4.0 Porter’s 5 Forces Analysis 12 4.1 Rivalry among Existing Competitors 12 4.2 Threat of New Entrants 14 4.3 Threat of Substitute Products 15 4.4 Bargaining Power of Suppliers 16 4.5 Bargaining Power of Buyers 17 4.6 Summary 18 5.0 Conclusion 19 References 20 1.0 Introduction Computers are can be found at everywhere around the daily life, the modern world will be incomplete without computers and their applications. Therefore, computers are extremely important and indispensable. The importance of computers cannot only be denied in the corporate or business world, even in people’s personal life. Nowadays, more and more people are relying on computers; most of them will feel crippled without a computer, and for many individuals computer means personal computer (PC), including laptop and desktop computer, on which they can search information, chatting, watch movies, play games and prepare office sheets. The PC industry has become a highly profitable industry, which is worth hundreds of billions of dollars worldwide. Driven by consumer demand to access the Internet, the demand for PCs has continued to climb (Arvidson, 2011). According to the computer industry almanac (2012), worldwide...
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...almost 14 countries throughout Asia, Europe and North America. It is a leader in the UK grocery market with 30% market share (Channer & Hope 2001). The company employs approximately half a million staff worldwide, 250,000 of which are in the UK. It operates with 2,500 stores in the UK. Tesco sells more or less 40,000 food products all over the world and 65% of its sales are attained outside the UK. This evidence, the company high concern with its international operations that will be discussed in this report along with the evaluations of some other international operations related aspects to make some final recommendations. Driving Forces behind Tesco’s Sales outside to UK Retail environment of the world is changing significantly in almost all of its aspects and domains. Nowadays customers does not prefer to purchase different grocery items from different grocery stores as they feel comfortable to purchase it from some retail stores in which every grocery item is present at single place (Burt, Sparks & Teller 2010). Changing customer buying patterns and market trends are the major driving forces that encourage a company towards international expansion. Similar, is the situation with Tesco that also generate more of its sales from international locations (Channer & Hope 2001). It is because of several driving forces related to country’s own environment and effect of international market environment that are as follows: Increasing globalization: One of the...
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...and achieving volume sales (relatively speaking, at least) through Michael Marks' Penny Bazaars in the North West of England. This strategy was overwhelmingly successful, and continued to be the central tenet of M&S strategy for many years. M&S sailed through the depression and several recessions, but at the end of the 1990's something went severely wrong. Profits were falling year on year and the footfall in the stores was lower than it had been for several years. From the year of 1991 to 1998 it started to regain its profit again. But from 1999 the situation started to worsen again. This report sets out many of the reasons for that failure then concludes by suggesting and evaluating the strategic options open to the organization going forward. The report concludes that drawing on the substantial capital resources of M&S, brand and product development are the appropriate measures to take in order to put M&S back on the retail map. 1|Page Part 02 Strategic Profile and Case Analysis Purpose Strategic Profile The case study provided several descriptions on the basic elements of the company. It has been described as a company that adheres to top-down management approach compounded by the close supervision provided by its former CEO. This has worked well with the company for several decades, however in the latter part of the 1998s a noticeable decline in the sales as well as in the overall performance of the company was observed. Various revolutionary and evolutionary...
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...1. Introduction…….………………………………………………………................... 2 p 2. Overview of Land Securities..…….................................................................... 2 p 3. The market trends, opportunities and risks..…...…………................................ 2 p a. Housing in London 2 p b. Commercial real estate in the UK 3 p 4. Strategy for management and marketing.……………………………………….. 3 p c. Business model .……........................................................................... 3 p d. Performance.……................................................................................ 4 p 5. Specific project analysis …………....…………………........................................ 4 p e. Stakeholders aspirations …………………………………………………... 4 p f. Operational performance …………………………………………………… 5 p 6. Conclusion and recommendation ………………………………………….............. 8 p 7. References …………………………………………………………………………….. 9 p 8. Appendix………………………………………………………..…..............…..…....... 11 p 1. INTRODUCTION This report aspires to critically evaluate the performance of Land Securities and provide enough evidence to allow non-professional investors to understand the Company performance, the market where it operates and decide if investing in Land Securities is appropriated, considering the risk and the ideal time frame for that potential investment. 2. OVERVIEW OF LAND SECURITIES ...
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...COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED. Tesco PLC TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts...............................................................................................................3 SWOT Analysis.....................................................................................................4 Tesco PLC © MarketLine Page 2 Tesco PLC Company Overview COMPANY OVERVIEW Tesco PLC (Tesco or ‘the company’) is a food and grocery retailer. The company primarily operates in Europe and Asia. It is headquartered in Hertfordshire, the UK, and employed 519,671 people, on an average, in FY2012. The company recorded revenues of £64,539 million (approximately $103,223.7 million) in the financial year ended February 2012 (FY2012), an increase of 6.8% over FY2011. The operating profit of Tesco was £3,985 million (approximately $6,373.6 million) in FY2012, an increase of 1.7% over FY2011. The net profit was £2,806 million (approximately $4,487.9 million) in FY2012, an increase of 5.7% over FY2011. KEY FACTS Head Office Tesco PLC Tesco House Delamare Road Cheshunt Hertfordshire EN8 9SL GBR 44 1992 632222 Phone Fax Web Address http://www.tescoplc.com Revenue / turnover 64,539.0 (GBP Mn) Financial Year End Employees London Ticker February 519,671 TSCO Tesco PLC © MarketLine ...
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...International Market 2 2.1 PEST Analysis: Tesco in Brazil 2 2.2 Market Specific Issues 4 3. Industry Analysis: Brazil 4 3.1 Competitive Rivalry in the industry 5 3.2 Bargaining Power of Suppliers 5 3.3 Bargaining Power of Customers 5 3.4 Threat of New Entrants 5 3.5 Threat of Substitutes 6 4 Company Analysis: Tesco 6 4.1 Resource Based View: Tesco 6 4.2 SWOT Analysis: Tesco 8 5. CAGE Analysis 9 6. Conclusion 11 7. References 12 1.Introduction Tesco Plc is the second largest retailer in the world and currently operates in over 6000 stores worldwide (Tesco Annual Report, 2014: n.p). This report analyses Tesco as an organisation and proposes a potential market for international expansion. The aim of this report is to analyse the international market’s environment and then indicate a potential strategy for Tesco to enter the market. The report initially works towards the analysis of the new market’s macro environment to understand key aspects linked with the proposed business market. This is followed by an internal analysis of Tesco and an overall external analysis of the retail industry in the new market. A strategic approach to enter the new international market is then presented. The proposed market for entry is Brazil. Brazil has a population of over 200 million and is the fastest merging economy in the world (IBGE, 2014: n.p). The country poses an exciting opportunity for Tesco to enter as the new trendsetter in the retail market. 2. Analysis...
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...distribution based primarily in the UK, in Ireland and Asia. Its capitalization is 34.84 billion at 11 July 2008 and its turnover is 80 billion Euros in 2008. Tesco is British distribution group and 3rd World Group. Its activity revolves around three areas: distribution in the UK, international distribution and financial services. (Pagano, Margareta, 16 May 1987). The Macro Business Environment of Tesco Group The Macro-Environment consists of factors that may influence an organization externally. This is usually outside of the control of corporations. Examples of factors that may influence a business are changes in interest rates, changes in cultural trends and tastes, more competitors in surrounding areas as well as greater regulations or changes to government laws. (Pagano, Margareta, 16 May 1987). A popular method used to analyze the macro-environment is through a PESTLE analysis which stands for political, environmental, sociological, technological, legal, and ethical issues. Factors That Will Have Significant Impact on Tesco Political Factors The political environment includes all government actions that affect the business in the retail trade. This effect may be through formal legislation, such as the law on the sale of goods, as well as through competition policies and planning systems. For example, the recent developments relating to food safety and sale of genetically modified foods also influence and restrict the activity in the retail sector. (Pagano, Margareta...
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