Pest Analysis of Airline Industry

3460 WordsFeb 12, 201314 Pages
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…show more content…
Since 2001, NEXT has created the next day delivery service on most home shopping orders. Currently there are more than 2 million customers in the UK and over 70% of NEXT 's home shopping business is now transacted online (nextplc.co.uk, 2011). Additionally, in October 2007, Meadow Hall in Sheffield became one of the first concept stores NEXT had fitted out in the new style that is now commonplace throughout its UK outlets (careers.next.co.uk). These events highlight the firm’s consideration of its customers and ability to diversify the service to satisfy customers’ needs. Depending on the analysis above, Next could provide a relatively high degree of perceived added value for customers. The firm also differentiates both its products and services to meet the needs of its customers. Considering NEXT’s product orientation, the organization sells moderately priced clothing and target customers are stylish women and men from 20 to 40. It also updates low price fashion products frequently. It shows that the price of NEXT products is acceptable for the public. In addition, the management statement of NEXT in 2 November 2011 presents there will no further increase in selling prices in the first half of 2011 and this trend will sustained to the second half of 2012. Totally, the analysis above illustrates NEXT’s strategic position is ‘Differentiation’, number 4 in Bowman’s

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