Retailing: Buying & Selling Goods & Services for Efficient Economy - Essay Sample

Introduction

The concept of retailing translates to buying and selling of goods in conjunction with services. It can also refer to the delivery of both products and services to the consumers in a given period at an affordable price. In retailing, there is always a direct interface with the customers while at the same time engaging in the coordination of all the business activities in any given agency or any business entity. It assists the world economies since it is regarded as the fastest growing industry. The fashion industry, on the other hand, refers to the given set in the business domain that acts as an intermediary between the manufacturers. There is the pooling of both interpersonal skills as well as the academic background with a well-laid foundation enabling the fashion retail industry to flourish. The industry is specializing in the latest fashion trends, thus developing the capacity to attract more customers according to their modifications.

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Debenhams is in the list of the best online fashion retail companies that serve an extensive geographical location. It deals both in clothing, footwear, among others. It is performing above the bar since it strictly aligns with meeting the needs of its customers at all times. Customers are always happy if their wishes, tastes, and choices are met. It has adopted a successful customer-oriented approach, thus retaining them, and at the same time, they act as the referral links to the incoming customers. Fulfillment of the customers' requirements produces a direct wave of influence on their motivation.

Moreover, it has an open platform where customers can share their experience and views in line with the commodities on sale. Its revenue thereby bulges, and the capacity reaches out to many customers in different parts of the world improves. Another important aspect is developing a full understanding of the customers, which may encompass different age brackets. There have to be determination of the customer's preferences and tastes. The retail company can thereby ship some of the ordered commodities to various places as per the location details, which can be located on the customer's profile. It has also developed the ability to build a community of customers whereby it enables customers to see reviews on other customers they trust. It serves as an indirect informational strategy where customers can get replenished with information from their fellow customers rather than Debenhams itself. Trends in fashion can easily be acquired based on the reviews of the customers, thus increasing the revenue within a short period. There also some ratings above the customers' reviews, thus allowing new customers to adopt an environment of trust.

Besides, it adopted a customer loyalty program as a way of giving incentives to the customers by allowing them discounts after purchasing some clothes or even footwear. It is able to compete favorably with various giant fashion retail companies, thus outshining them with ease. Its branches are spread globally in various countries across the world. Coordination is easily attained since digital technology is behind its growth.

PESTEL analysis of Debenhams fashion retail implies the study and determination of its political, environmental, and social, and at the same time, technological and legal factors representing the macro-environment have a considerable impact. For the company to survive and strive smartly, there has to be no bureaucracy by the government at all. The company relies on the government for the distribution and successful delivery of goods. If the government imposes its bureaucratic force, normal processes may be hindered or slowed at some point though the government can support the retailer through the provision of licenses and lowering of taxes that, in turn, contribute to the general decision making.

The other macro-environmental factor that is vital is competition as well as the competitors. Some of the online fashion retail competition emanates from Marks & spencer. Debenhams, therefore, can engage in healthy competition through a diverse provision of clean and splendid customer services. It includes the feedback given to the customers is crucial since they serve as an essential motivational pillar. Besides, Debenhams prices are set based on close market analysis. Customers can thereby order and acquire their commodities at an affordable price. In that case, the number of reliable customers increases, thus slowly increasing the revenue.

It is crucial to determine the class of the customers and not just to lower prices for the sake of winning more customers. The target class is vital since it addresses all the customers with fairness. Specialization helps the company deal only with fashion-related goods while others deal in a vast range of products. Customers can easily search for their requirements on the filtering domain according to their new preference due to the changing fashion trends. It has a substantial market niche where products can be obtained with a high possibility of flexibility, thus the ability to perform better than its competitors. Technologically, Debenhams is employing digital technology to build customer relationships by informing them through emails on the products they may be offering at a particular time by enabling automatic reminders. They can also send the information on products that haven't been purchased yet against their respective prices.

Moreover, there is a provision of online live-chat support whereby customers can get assistance in case there is a problem with the packages delivered to them. Instant informational direction can thereby be a determinant of the directive move. It is also a way of ensuring and promoting loyalty to customers. Debenhams fashion retail industry experiences social impacts from the increment in the online purchases made by the consumers. As a result of the fair treatment offered as well as discounts to the customers, it results in more referral gaining.

Additionally, there is increasing popularity as a result of the consumption in developing markets. People in developing markets are preferably choosing Debenhams since its prices are lower in comparison to other fashion companies, thus achieving a competitive advantage. Legal factors may result in the societal demands on the security geared for the customers as well as the holistic safety of the consumer. There are also changes in the regulations of both imports and exports. It, therefore, enables sellers to access the suppliers from overseas. Environmental factors that affect Debenhams fashion retail results from the rising interest encompassed in the environmental programs. It serves as a verdict of both energy consumption as well as waste management.

SWOT analysis refers to the close examination of the Debenhams's strengths, weaknesses, opportunities as well as the possible threats. Some of the strengths that Debenhams embodies include successful and robust digital growth in the world market. It is also performing as customer-oriented online retail since it caters and treats its customers at a standard price. Cost leadership capability is also a unique feature since it doesn't necessarily incur any costs in the maintenance of physical stores by selling out all the fashion commodities through the online platform. There has been an introduction of third-party sellers as a result of high traffic volume on traffic; it thereby engages in selling some of their merchandise.

The company has also adopted a new strategy of going global and acting locally. It is made possible through the availability of local supply chain companies bringing about the competition against new online fashion retail companies. Local culture is thereby undisturbed since local needs have already been recognized and respected. Logistic systems and distribution channels that are being used by the company are well developed (Wang, 2019, pg.3596). The delivery rates are at all times fixed, making the delivery secure, time-bound, and reliable. Quality is a prerequisite requirement for every customer, thereby Debenhams Fashion Company ensures that the delivery dates are attained.

Debenhams is also able to capitalize on its opportunities, which include new penetration and expansion in the developing markets. Other companies to penetrate the new markets fully. The physical development of the stores helps it achieve competitiveness against the retailers in the competition, thus paving the way for engaging with the customers with its brand. The technological measures, as well as the organizational policies, can be improved to attain the reduction of forged sales. Debenhams is also lying on the verge of many threats, such as the regulations imposed by the government. It depends on the country where Debenhams is executing its operations, such as those affected by war, e.g., Syria.

The other is the effect of cybercrimes, which results in the effect company's network security system. Loses can be experienced due to hacking and online burglary. Stiff competition that's caused by other giant companies in one way or the other is likely to pressurize the company in the future. On the other side, new entrants are adopting the model that's being used by Debenhams, thus resulting in new changes. Once various online fashion companies use the same business model, predictability of performance can easily be known, thus the development of competition tactics.

Debenhams is fully utilizing opportunities in countries where peace, as well as the tranquility, is paramount and has been incorporated on the citizens. The company can soar to the greater heights in terms of the profits that it is making. Delivery and other operations in a peaceful country are thereby undisrupted. In most cases, the governments within which Debenhams operates has vowed to unceasingly fight the cybercrimes that may pose threats to online agencies and other fashion retail companies. The political serenity is also enabling Debenhams to streamline through online transaction platforms by various governments.

Debenhams is also engaging in successful coordination with the governments, thus gaining the ability to experience tax rates reduction. Under this, the tactic that is being utilized include diversification. It entails the introduction of new fashion designs to the existing fashion commodities. It is thereby an essential approach to adding the value of the current stock. The tastes of the latest designs attract more new customers through referrals. Vertical diversification is also used by the company where it is starting new operations following the alignment to supply chains. It manufactures its clothes instead of sourcing out from the suppliers. It is also changing the existing cloth design by adding a new style and parts.

Furthermore, dynamic online shopping trends are taken as an opportunity for Debenhams to sell more fashion commodities. Its sales are growing with time since people have developed a preference for online transactions. The marketing strategy that is also being used is somewhat comprehensive; it entails the use of referrals for customer increment. Debenhams has grabbed the opportunity of the use of online transactions in developing the market potential within the respective countries. It is also essential to consider that the purchasing power in the developing countries is shooting up at an increasing pace, thus the ability to create an additional valuable opportunity (Kasemsap, 2018 pg.320). The company is also applying the tactical strategy of setting competitive prices that favors its customers in different parts of the world. Pricing decisions are influenced directly by the cost structure of the general business model.

Debenhams fashion Retail Company is also doing close monitoring and...