Analysis of WH Smith
Introduction WH Smith plc is one of the UK’s leading retail groups incorporating market leading companies in retail, publishing and news distribution. ... The majority of WH Smith’s business is UK based, but it also operates in a further 12 countries, with presence in North American, Asian, Australian and European markets. WH Smith was the leading seller of books and magazines in the UK in 2000. ... It was established in 1972 by Henry Walton Smith and his wife Anna when they opened a small newsvendor in London. ... In 1848 WH Smith, named earlier after William Henry Smith and his son, took the advantage of “railway mania” in England and opened its first bookstall at Euston, London. ... In 1850 WH Smith & Son was already recognized as the principle newspaper distributor in the country. ... In 1903 WH Smith has already expanded and its first overseas branch was opened in Paris. ... Structure WH Smith has evolved from the very simple structure of a family business, offering news vending services. ... Retailing is WH Smith’s main activity comprising 553 High Street Stores, 220 travel retail outlets in the UK and WHSmith. ... News distribution made WH Smith UK’s market-leader through its 54 distribution centers across England and Wales, it serves both independent newsagents and multiple retailers. ... Publishing for WH Smith is done through the Hodder Headline, which is one of the UKs largest, most successful and diverse book publishers. WH Smith’s Mission WH Smith’s mission is to have a range of products and a quality of service which meets customers’ need more effectively than any of their competitors. WH Smith’s strategy – achieving the mission WH Smith’s strategy is to focus on businesses in which the core skills and experience in retailing and distribution can be brought to bear. ... WH Smith’s Main Goal WH Smith’s main goal is to be recognised as the leading company in each of its markets and to maintain standards of excellence in everything its businesses do. By doing so WH Smith should be distinguished and positively contrasted from its competitors. LoNG PEST Analysis WH Smith is a large and powerful player in a dynamic and risky environment. ... For a company, acting in many and different national and international markets, such as WH Smith, it is extremely important to systematically analyze the political, economic, social and technological conditions of these markets at a local, national and global level. ... Political factors At a local level WH Smith should be aware of the influence that local authorities may have over the traditional running of the business. ... Being a retail giant, WH Smith should respect local retail unions of small shops which may have serious influence over local people and authorities. ... Thus, in 1995 the bookselling and publishing performance of WH Smith faced some major changes following the removal of the Net Book Agreement. ... At the same time this enabled other volume multiple retailers such as supermarkets to actively undercut the more traditional bookselling companies, creating a serious threat for WH Smith. ... For example, certain changes made to the UK legislation arising form settlements with the European Union may make WH Smith reconsider its strategic options. Current war events in Iraq, UK’s support to the US actions and the disagreement on these issues by certain other countries certainly has an effect on WH Smith’s activities. This may result, for example, in increase in the newspaper distribution and retailing, as well as a downturn in the demand for other WH Smith products in UK and other regions in the world. Similar outcome in the WH Smith’s results was observed after the terrorist attacks of 11 September 2001, when newspaper sales have risen by 4%.