TRANSCRIPT Introduction The retailing world is the main conection that brings together two key groups which are customers and manafctures this report sets out to find the impact that river island has on the retailing world and inperticular anaylizises its retaling operations and tactics When try River island sets its self in the clothing industry inperticular focusing its self on the female segment but also penetrates others. When a business desides to operate in the retailing industry their are four key fundermentals which it sets out to.
When a business desides to operate in the retailing industry their are four key fundermentals which it sets out to. They have adapted a forward intergration by which they manufacture theirown lines and are responable for the retaling activities.
Being such a innovative retailer, gives River Island a chance to differentiate its self. They have used various innovative methods such as endorsing celebrities or famous designers to design a range for them.
Furthermore River Island boasts of its specific designing team which use innovative methods to create the next new thing Pricing River Island are devoted to providing their customers with the highest quality goods and at affordable prices.
Pricing is one of river islandbiggest strengths in terms of competitive strategies. Pricing is one of the key reasons river island are so successful in the retailing market and having been around for many centuries starting in has given river island the power to negotiate prices for raw materials.
Furthermore as they have been around for many years it has meant that they have had ample of time to gain long term resources such as their own manufacturing plant which has helped them to improve their financial positioning Unique Products - the benefits of shopping at River Island is knowing that you have bought something that is unique and cannot be bought at any other retailer This is down to the reason that river island have a team for specialist designers which design clothes for river island that have never been seen before and have not been sold anywhere else.
This is such an attractive feature that customers see when shopping at River Island as they know that no other store will be selling this jacket or dress anywhere else. This strength goes hand in hand with innovation and are dependent on each other WeaknessChange in season change in season is a big problem that river island face as the rise in global warming and the change in season it is hard for river island to predicted what the weather will be like next month.
In recent time the winter season was colder than ever and stocks for the winter line shot off the racks quicker than ever, being in spring the designers have brought out the new collection of cloths in store yet it being still cold outside.
Customers coming in to the retailer finding out that the winter jacket and clothes are gone and the spring line being out the customers not buying the spring line as its still cold outside and the winter clothing has been sold out and out of fashion.
This is a big problem the retailer is finding as stock is not being sold and been left on racks just too been thrown away. Economic Change the change in the economy has a huge impact on River Island as there is no way in determining which way the economy willgo if the economy goes down then the prices in materials would go up.
Opportunities Online positioning with the World Wide Web being used so much more especially for shopping it has given retailers a opportunity to move into this market.
Although river island have already situated them selfs in thismarket they can still utilise media websites from Facebook to instagram. Acquisitions A great opportunity for River Island to grow in the market oreven a qnew market is to consider an acquisition of a company in the proposed field expand is that they start a corporate action by buying mostor if not all of a company and making it their own.
In regards to expanding it can be summed into two key categoriesExpansion into new markets River island have the chance to start operations in new locations such as china.
With its growing population it gives river island a chance to exploit the market Expansion in number of stores. Currently they have over stores. Whena further look into the location is done it is highly obvious that there is a big potential for them to expand just within the current markets they are in at the moment.
Product expansion River Island should look to improve their product backlog by expanding their business in to different markets.
Economic slowdown an impact on the economy results in a trickle affect. This impacts river island directly as prices for raw materials might increase.
But furthermore the key In any economic shift results in the expediter of people. When the economy affects peoples income then theyare less willing to spend in shops such as River Island as people become even more price concienious. As the smallest law that could change could change the way the retailer does business and hit the profits that are made.
PESTLE AnalysisPolitical There are many external influences that affect River Island such as political issues such as tax policies that have been changedgovernment organisation attitudes change to the rapid growth in profits and business growth.
The stability in politics is no longer secure which keeps river island cautious on growth and big investments that may be made and finding them selfs no longer investing due to the investment risks.
EconomicThe economic issues that river island have to look over in order to grow are economic growth, government spending and taxation.
As the economyis in a recession, company growth is at a low river island cannot afford to lose out on investments made in to other firms due to the lack of resources in the economic which river island would find a loss in.The SWOT analysis of the Jeans range offered by River Island (See appendix 1) Strengths - Established over 6 decades, River Island is dedicated to creating stylist, playful and affordable fashion products in order to satisfy young adults.
Window display didn’t have the ‘WOW’ Factor, one nearer to Marble Arch had a better display Lacked in products for petite and tall Not many varied sizes in some products, had size 8 but not many other sizes Height of products, hard to reach some of the garments on top Mannequins at the end of the railings didn’t have the products Opportunities.
A SWOT Diagram showing River Island SWOT. You can edit this SWOT Diagram using Creately diagramming tool and include in your report/presentation/website. Introduction The retailing world is the main conection that brings together two key groups which are customers and manafctures this report sets out to find the impact that.
River Island - SWOT Analysis Park House Internal Weaknesses Location Opportunities To increase sales: 1. Bring more knitwear to ground floor, particularly, the festive jumpers.
- Competitors are a big threat to River Island and other retailers, cheaper retailers such as boohoo and misguided sell similar fashions as River Island but at a much cheaper price as they are online retailers so can threaten River Islands sales.