Next Plc

1.        Attractive and creative design of stores

2.       Positive image for corporate social responsibility

3.       Effective implementation of online sales channel: attractive and sophisticated website, next day delivery for online purchases

4.       Solid financial position with sales of GBP 4.1 billion and profit before tax of GBP 821 million in 2015 (Annual Report, 2016)

1.        Lack of focus on positining, i.e. in the middle between cost leadership and differentiation

2.       Overdependence on the home market with 90% of revenues generated from the UK (Annual Report, 2016)

3.       Absence of clear strategy to achieve long-term growth prospects as of January 2017

4.       Deficit of strong and effective leadership at strategic level

1.        International market expansion with the focus on emerging economies

2.       Focusing on clarification of business strategy (cost leadership or differentiation) to avoid being stuck in the middle

3.       Effective engagement in celebrity endorsement via recruitment of celebrities popular with the target customer segment

4.        Formation of strategic alliances with other businesses targeting the same customer segment

1.        Increasing competition from discount clothing brands

2.       Further deterioration of the national economy in the UK

3.       Increase in the prices of raw materials

4.       Failure to formulate and implement long-term growth strategy for the business