SWOT NEXT PLC
Introduction This report is for the assessment of Inditex Group acquiring NEXT Group PLC. ... NEXT`s activities revolve around the high street retailing, home shopping, call carters and customer support services, overseas franchises, home products and online sales. For appropriate conclusions to be made for this acquisition financial and market oriented considerations have been taken into account and are formed into internal strengths and weaknesses and external opportunities and threats concerning NEXT Group PLC in this essay. Strengths: NEXT have had strong annual profits and an increase in retailing sales (Appendix 1, 4 5, 8 , 26, 27, 28, 29, 30) as well as high sales per employee (Appendix 4, 26). ... NEXT has a clear and focused strategy which results in an activity in only one core market (United Kingdom & Eire) and can therefore better realize their customers needs (Appendix 2, 28, 29, 30). The offering of stylish, good products at an affordable price bestowed NEXT a strong and now well-known brand name (Appendix 3, 11, 28, 29, 30). Their high and still growing market share (Appendix 19, 2, 28, 29, 30 led NEXT to the 5th biggest clothing retailer in Europe (Appendix 17) and at number three in the UK (Appendix 44). NEXT has one or more stores in the majority of town and cities, where they can operate profitably, as well as high street prime locations, which all is in great interest for Inditex (Appendix 4, 28, 29, 30). Their successful direct-mail-order division NEXT Directory, which counts for 22% in sales and 26% in profits (Appendix 30), is well established in its market, on number two just behind the market leader N Brown (Appendix 20). During the last year NEXT Directory acquired a double digit larger customer base and extended its market position (Appendix 10, 28, 29, 30). ... Weaknesses: One of NEXT`s major strengths is also a weakness, the market in which they are active is one the one hand manageable on the other very limited (Appendix 4, 28, 29, 30).