The company has been around for 105 years and is known for producing quality products. Strength of NEXT Plc is the quality of the clothes that they produce, proven by the resale value of the clothes when they are resold. NEXT Plc. has favorable financial conditions. The Company has been experiencing a strong growth in the value of its stock and has made profits. The firm has strong capital background to expand it into other ventures. We cannot deny that NEXT Plc. is just more than a firm which sells clothes. NEXT Plc. is clearly one of the few companies in the world that works harder to build genuine relationships with their customers. Customer loyalty is NEXT’s strongest competitive advantage. Customer loyalty is NEXT’s strongest competitive advantage. The ability to offer a package of wholesale and retail financial services is a significant competitive advantage. NEXT Plc. employs just in time inventory system to improve the manufacturing process and this also helps to reduce the costs. One of NEXT Plc. weaknesses is it customer base. The baby boomers that have the disposable income are beginning to age and with a weak economy could cause people to defer from purchasing a nice to have item such as luxury clothing. With economist predicting a recession for 2011, there is the possibility that this will cause dealerships to maintain a larger inventory of high priced clothing which will drop the prices of 2008 models as the company brings out the 2011 clothing line. Another weakness is the percentage of the female market that NEXT Plc has been able to capture as the number of female buyers increase.
NEXT Plc is a luxury selling firm. The clothes are priced very highly and it is not possible for a middle class person to buy a clothing line from NEXT. Quality Management; compared to its counterparts, NEXT Plc. still could not achieve efficiency in managing the quality of its products. Lacks diversity; NEXT Plc. lacks diversity in its lineup of mostly new luxury lines. There is opportunity for NEXT to increase its sales internationally as they just opened its first dealership in mainland America in 2010. There are currently no dealerships in Europe at the present time either. With the majority of their customer base being an average, married male in his late forties, with a household income of $81,000 there are opportunities there to try to gain a larger share of the younger population and the female population of luxury brand owners. While the Brand of NEXT Plc. is recognized worldwide there is still the perception that NEXT Plc. customers are unshaven, rough and rowdy. NEXT Plc. is trying to improve this image by programs. NEXT Plc. should utilize the internet to change the image of NEXT Plc. customers. They could do this by publicizing the events and community service projects that customers and employees volunteer at within the community.
With NEXT Plc. opening its first store in mainland America there are great opportunities to expand sales in this market and other markets internationally. With NEXT’s brand and the expanding economy this is a great opportunity to expand its sales.