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    PM101 Retail Business Level 4


    Retail market comprises of huge competitive rivalry so to remain sustain in market for longer period company need to scan the external environment to know recent trends and fashion coming in market (Fernie and Sparks ,2014). Further, in this sector different tools and techniques are used in order to make products and service innovative and attractive. Under this assignment the company which is preferred I.e. John Lewis which is high end departmental stores having partnership of John Lewis with Spedan lewis that deals in fashion products and services of men and women , electricals, furniture light and home garden and comprises of 38,100 employees with 50 stores in that country. Further it discuss about the relevant change in micro environment, strategies and tactics they used in beating all the challenges of rivalry.


    Introduction to retail

    Retail is one the growing sector that develop at faster speed through which company can earn huge profit and high market share (Fuchs , Kalfagianni and Havinga ,2011). In dynamic environment changes are coming at rapid speed due to modification in choices, opinion and preferences of customers that induces companies to develop something innovative designs in their products and services which attracts more customers towards that services and products that leads to sales maximisation and brand image of company.

    Introduction to company

    John Lewis is the chain of high end departmental stores in UK industry and that chain is owned by John lewis partnership created by Spedan lewis having 50 stores in England, Scotland and Wales that include 12 store at home country. This store having their own brand known as Jonell own brand merchandise in 1937. The main mission, vision and value of business is to provide a key inside into the culture and strategy of business. Further all the branded products of Wait-rose such as cleaning material and party stationery available at John lewis store. The company dealing in shopping products, electrical, home and technological products and stand top most position in retail industries and company is planning to expand their business at global reach so they provide their goods and services to different countries and use technological thing like opening official sites through which they provide their products through online by offering discounts and attractive deals. Further company is planning to open 10 new stores under different city locations over next five years and also avail their products through online terminal within stores. Further organisation is designing the innovative products by recruiting fashion designer in their stores so they scheming clothes and accessories in respect to future demand occurred in market which leads to gain competitive advantages over competitors and help in accomplishing the objectives and goals in effective and efficient manner (Grewal and et. al. ,2011).

    Key relevant changes within UK fashion retail

    In dynamic environment changes are coming at very fast speed in respect of technology and digitalisation which enforce all the retail sector to update with all the relevant modification coming in environment through regular scanning and surveillance. Various elements and factors that impact on fashion sector are described below:-

    • Political factors:- Different types of political elements and components will create uncertainty in whole fashion industry. Further various incidents arises in 2016 and 2017 have made different types of modification in retail fashion industry due to political instability and favourable unfavourable condition like changes in political rules regulations which create difficulty at the time of diversified in many geographical units.
    • Economic factors:- Different elements and factors in economy effect on overall working structure of the company in fashion retail industry. Various economic fluctuations coming in external environment which include volatility in economy that affect their sales and profits. In terms of GDP UK is seventh largest economy in the world but fashion business is affected because of recession inflation in 2017 and due to different factors like volatility in Chinese market and also demonetisation in India will effect sales and purchasing power of individuals. Although fashion industry is prove as good factor especially John lewis, because of providing different employment opportunities in particular economy.
    • Social factors:- In macro environment company working style is also impacted by different social elements and components which include thinking and perception of society towards particular organisation. Sales of fashion industry increase and decrease according to the changing trends and choices of target audiences whether they like their products and services or not. Further, due to advance growth of fashion industries demand of young generation is diverted towards particular brands which they want to purchase. John Lewis is one the famous multinational brand that known for their standard quality in their goods and services and provided clothes to people at affordable prices. All these are consider as challenges towards the fashion industry of UK.
    • Technological factors:- In business organisation different technological changes has been coming in external environment which affect the working style and operations of fashion industries. Further, different innovation and digitalisation has been coming by IT industries and use of mobile phone and internet app are their that give all the recent information regarding fashion in traditional and modern wear that affect the choices and preferences of customers (Henriksen and et. al. ,2010). Today technology has disrupted various things in the form of production and supply chain which give greater effectiveness to the sales and marketing of fashion products and services but it develop their business through e-commerce through increasing their customer segments.
    • Environmental factors:- Maintaining sustainability in environment is one of the important factor in retail fashion industry. Further John Lewis must consider about carbon footprints at the time of designing fashionable products and services in decrement form. They also investing more in environment and sustainability by environmental friendly raw materials, packaging and different management operations. According to research and report around 65% of consumers are inclined towards sustainable fashion only and company like John Lewis main focus on is to achieve their sustainable goals and targets.
    • Legal factors:- Legal challenges are also impact fashion retail sector because company has to adhered with the different ethics and compliances at the time of expanding at global reach. Different laws especially all the labour laws which are applicable on organisation must be strictly followed and also consider all the environmental laws that applied on John Lewis in order to maintain goodwill and brand equity at global level.

    Company need to considered all the major factors and elements that affect the overall working of organisation which include both macro and micro environment. John Lewis is one of the leading organisation in retail fashion industries which require to establish different strategies and tactics in order to gain competitive advantages over competitors and earn huge amount of profits so they maintain their sustainability for longer period of time. Main rivalry of company are ZARA, Levi's Strauss and H&M in fashion industries. In UK when Brexit regulation coming that separate UK from European union and terrorist attack in France create complexity in fashion industry. This consider as alert signal for all retail industries to make changes in their fashionable products and services.

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    Changes with micro environment

    Their are different external environment factors in organisation that impact on overall operations of company working in UK retail fashion sector (Islam and Deegan ,2010). Apart from it different internal factors which highly impacted in decision making in order to achieve all the goals and objectives of organisation. Various factors that were coming under micro factors are described below:-

    • Corporate culture:- Culture adopted in organisation is highly impacted on the performance and overall goodwill of company. John Lewis is famous multinational retail group that adopted flexible and decentralised which suited to the vision and objectives of company. If positivity and ethical culture is their in corporate environment then it motivate employees for better performance and productivity.
    • Values:- John Lewis must adopt moral and ethical values in their organisation structure which add the value in the existing products and create innovative features in new goods and services. The main vision of company is to maintain strong cultural strategy and values in their professional employees that help in satisfying the demand and wants of target audiences.
    • Suppliers:- It is consider the most important macro factor of environment to whom company full-fill the needs of stock and inventory. Power of supplier in fashion industries is less as compare to other sector because of availability of large number of suppliers and raw material is offered in different countries such as Vietnam and china. Different suppliers in fashion sector are not coming in such position that influences the decision making and operation of John Lewis.
    • Buyers:- In modern world every signal individuals is desperate towards the recent clothes which were trending in the market. High standard of quality with accessible clothing and encourage to fashionable brands such as John Lewis for manufacturing and producing clothes according to the requirement of customers,
    • New entrants:- Every organisation is facing huge competition from their rivalry so in order to maintain sustainability in external market they need to make innovative and recent changes in their organisation structure and designing of clothes. Further they require to invest funds in marketing, distribution, production and other business operations for creating awareness among customers regarding products and services.
    • Complements and Substitutes:- In retail fashion industry it has been seen that there are different types of substitutes that are available in respect of products and services. It is very easy to prepare a product which is similar to branded product that affect the sale and profitability of branded companies.
    • Competitors:- In retail fashion industry there are different competitors available in market which create huge competition. Industry like H&M, ZARA and GAP are the major competitors so there is need for John Lewis to formulate strategies, market research and tactics in order to take the decisions to meet the market demand and supply which help in betting all the challenges of rivalry.

    Therefore, it is important for UK retail fashion industry different players are coming with different strategies which impact on business and commercial activities of other firm. Various types of macro factors will affect to the decision and strategies of particular brands which must be consider by John Lewis at the time of establishing strategies and policies. Further provided good quality of goods and services to satisfy customers needs.

    Different tactics and strategies that could be used by retailer to respond the changes taking place in fashion clothing market

    In retail fashion sector John Lewis one of the top most multinational brand that affected by different factors and elements and their decision making also. Various external and macro factors like political, social, legal, environmental , economic and many more that help in encouraging to implement all the changes in their production and manufacturing process. In dynamic business environment various changes were coming in rapid fast speed so it is important to establish strong policies, procedures and strategies that help in meeting all the targets and goals of organisation (Leverstein‐van Hall, and et. al. ,2011). Following are the strategies established by John Lewis in order to managing all the changes in environment are discuss below:-

    • Adroit design strategy:- In earlier time different fashion company in order to come in stardom of target audience take the help marketing media tools to become trending fashion brands as per environment. In that case, John Lewis is known as fashion imitator because the organisation is not able to analyse the fashion trends but it intimates the fashion trends and produce the products according to the requirement of customers at price which is affordable for them. Further they need to maintain their logistic department in order to deliver the goods and services to customer at stated time period. Introduce clothes with new variety and attractive features able to comprise large numbers of customers. Enterprise also react quickly for new designs, styles and different patterns which leads to maximisation of sales and profits.
    • John lewis design strategy:- John lewis is a multinational brand which require to scan the environment in order to maintain the sustainability in external market. Further company require to adopt thoughtful approach and remain loyal towards their customers in terms of its offering in market. Company management comprises of professional designer who stitch various clothes of both man and women that must be match with the recent requirement of customers and provide such products to them at affordable prices which suited the needs of all level of management. Further, using porter 5 model approach and SWOT analysis help in knowing present situation of company and all the strength and weaknesses by comparing the present performance with standard performance and if any deviation arises take corrective steps so that productivity can be obtained.

    Alteration in attitude, behaviour, beliefs and culture among different individuals are the most important factors that affect the purchasing power and perception of consumers towards goods and services. Further, these factors and elements must be considered at the time of formulating strategies, policies and tactics of business in implementing action plans. These strategies helpful in implementing all the changes coming in environment in their organisation structure. Company manager and leader also organise training development programmes in which they give all the knowledge and innovative updation that they need to consider at the time of designing fashion clothes for youth, children and old people. Further company also adopt CRM techniques and mechanism in their organisation structure so that they can maintain the list of daily customers which leads to establishment of long term customer base and trust towards particular brands.

    If company diversified their stores at different countries then it is essential for them to launch such type of clothes and product which are according to the culture and beliefs of that particular society which allows them to strength their product portfolio in particular market. John lewis must plan to come in strategic alliance and joint ventures with the company of that country so they able to establish their position in that atmosphere in effective manner. Use of internal sites and digital techniques and introduce new collection every month and weeks at affordable prices help John Lewis to accomplish their objective and retain their brand image in all over the world (Puri , Rocholl and Steffen ,2011).

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    • Fashion industry consider as one of the fast growing sector that earn huge amount of profits due to continuous innovation and digitalisation in their clothes and services.
    • Trends, choices and preferences are changing in dynamic external environment so there is need for John Lewis to collect different data and information and include relevant things in their organisation structure and manufacturing process.
    • Further management team need to organise systematic training and development events for their staff members so that they guide their employees about all the recent updations and new techniques in their designing they are using in their clothing both for man and women.
    • It is recommanded for John Lewis to collect data research and survey programmes to know the opinion and viewpoints of target audiences and make their own strategies and policies that allows them to satisfy customers needs at most effective and efficient manner.
    • This company is also planning to put personal shoppers for men into eight more stores and also come in beauty parlour and community events rooms for which they required to give proper direction and guidance to their employees how they communicate information related to new products and services to large customers.


    It has been concluded from the assignment that retail sector is one the important sector through which company can earn huge profits and enhance their market share. Further, different competitors are coming with innovative ideas and techniques through their products and services that help in maintain the sustainability in external market for longer period. John lewis is one of famous supermarket and retail store need to adopt such methods and mechanism that allows them to gain competitive advantages over competitors.

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    • Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan page publishers.
    • Fuchs, D., Kalfagianni, A. and Havinga, T., 2011. Actors in private food governance: the legitimacy of retail standards and multistakeholder initiatives with civil society participation. Agriculture and human values. 28(3). pp.353-367.
    • Grewal, D. and et. al. ,2011. Innovations in retail pricing and promotions. Journal of Retailing. 87. pp.S43-S52.
    • Henriksen, L. and et. al. ,2010. A longitudinal study of exposure to retail cigarette advertising and smoking initiation. Pediatrics. 126(2). pp.232-238.
    • Islam, M. A. and Deegan, C., 2010. Media pressures and corporate disclosure of social responsibility performance information: a study of two global clothing and sports retail companies. Accounting and Business Research. 40(2). pp.131-148.
    • Leverstein‐van Hall, and et. al. ,2011. Dutch patients, retail chicken meat and poultry share the same ESBL genes, plasmids and strains. Clinical Microbiology and Infection. 17(6). pp.873-880.

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