Business environment of Dorothy Perkins
Dorothy Perkins is among the well established and known fashion retailers in the UK. The company has more than 920 branches and has gained great market share on the high street. The company has reached various online shoppers and this had made Dorothy Perkins dominant in the UK’s fashion industry. Environmental factors have both positively and negatively affected the operations of Dorothy Perkins. Among the environmental factors affecting the company are, the increased number of competitors, change in technology, and lifestyle dynamism (social-culture) (New Balance, 2009).
Competitors
The competitors are extremely long term and most likely permanent have a sustained long term negative effect on Dorothy Perkins’ growth. The emergence of other retailing shops and companies has resulted in reduced sales in Dorothy Perkins. Among the competitors are Marks and Sparks, Evans and Miss Selfridge, and Wallis. It is therefore worth noting that competition has negatively affected the company.
Change in lifestyle
The change in lifestyle in the majority of UK residents has caused Dorothy Perkins to review their product types repeatedly. This means, the company needs to be more innovative and thus has to continuously alter its products (Porter, 2008). In some cases, some products have lost the market and thus causing a loss to the company. The change in lifestyle is affecting Dorothy Perkins negatively.
Change in technology
Technology represents a strong positive influence on the technical aspects of the environment of Dorothy Perkins. In an attempt to match the technology, the company has been forced to increase the effectiveness of production methods and systems and buy new materials (New Balance, 2009). The aspect has allowed the company to cut costs and provide better quality, design and suited products to selected target markets (Thompson, 2008). It is evident that change in technology has assisted the company stand out among the competitors and also invent new products into the market.
For Dorothy Perkins to remain competitive within the current industry and maintain its effective target marketing it will need to:
- Diversify within its market. Dorothy Perkins should diversify within its current market and innovate on its key products of strength (Porter, 2008). Such innovation will ultimately attract new and possibly alternative entities to their market. However, Dorothy Perkins target market is extremely dynamic (due to ever-changing lifestyle) and therefore they should also invest in related areas of interest (Hubbard et al., 2008). Dorothy Perkins will require not only product diversification but also innovation to ensure their new entrance to a target market will be noticed by the consumer.
- The company should secure its market. Dorothy Perkins is also faced with an extreme likelihood of consumers switching for substitutes or alternative products. Dorothy Perkins will need to secure its market by ensuring customers are loyal to the brand and offer continual support. Therefore Dorothy Perkins will require a competitive strategy to be developed to attain such a desire. As stated by Hubbard et al., (2008), a possible avenue of deployment could be the formulation of a strategy that benefits the customer greatly and puts at disadvantage external entities such as target possible younger markets early. Implementing the preceding strategy recommendations will ultimately give all the usual generic benefits (Porter, 2008). The benefits include cost reduction, increased market sales, and share, increased speed of development. It also includes the ability to create new target markets and evidently has a sustainable corporate strategy that is difficult to reproduce.
References
Dorothy Perkins, 2012. Retrieved from http://www.dorothyperkins.com on 14th Sep 2012.
Hubbard, G., Rice, J., and Beamish, P. (2008). Strategic Management: Thinking, Analyzing and taking actions, 3rd Edition, Pearson Education, Australia.
Porter, E. (2008). The five competitive forces that shape strategy. Harvard Business Review, hbr.org. Pages 78-93.
New Balance (2009). New Balance Fact Sheet, New Balance Athletic Shoe Inc. viewed: 17/10/09
<http://www.newbalance.com/corporate/pressroom/corporate_docs/NB_Factsheet.pdf>
Thompson A, (2008). Crafting and Executing Strategy, McGraw-Hill Irwin, New York.
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