NEXT clothing is one of the major retail fashion chains in UK, Ireland headquartered in Enderby, Leicestershire, England. The company has more than 500 stores in UK and Ireland and more than 180 stores in countries of Asia, Europe etc. NEXT is a London Stock exchange listed company. The main aim of this paper is to analyze the strategic position of the company using six different models.
Bowman’s strategy clock analysis:
According to the Bowman’s strategy clock, differentiation provides the biggest competitive advantage to Next clothing. This indicates that the products of the company have high value based on the perception of the customers. Yet, the prices offered by the company are quite reasonable. This indicates that the business strategy used by Next is hybrid. The goal of Next is to provide excellent quality of different kinds of goods under one roof. It aims to cater to a huge variety of consumers based on its price range and variety of products. It does not want to provide the cheapest goods. If it chooses to increase prices to make more profits, it would fail as the customers will simply turn to other options. If Next had monopoly in the market, overpricing would work as a strategy. But, the market is saturated and has stiff competition. If it chooses to reduce the quality of its goods and lower prices, initially, the sales might increase. But, in the long run, consumers will choose better quality substitutes due to lack of monopoly. Thus, by using these strategies, Next clothing is sure to lose out on market share and entail losses. By using high levels of differentiation and reasonable prices, Next ensures that consumers perceive that the products are of high quality and have value for money.