Factors Influencing Pricing and Market Strategies at Next

Question 1

Pricing is a fundamental factor that determines business success and is challenging to establish in such a way that guarantees profitability (Bessière et al. 2019). Next PLC works on reviewing the price to maximum profit level while keeping a check on the developmental strategies. Overpricing of the products may not be a good thing for attracting customers (Zimmermann et al. 2018). As much as customers want quality, they also want to protect their pockets. Overpriced products will cause a decrease in sales, highlighting the importance of strategic pricing decisions in business dissertation help.

Technology suggests the internet has allowed Next PLC to develop and nurture their online business model as opposed to the traditional physical retail stores. Technologies have simply allowed the business to form better relationships with the customers while ensuring an active mode of communication (Greve and Man Zhang, 2017). Socio-cultural change in the market can create a high-level impact on the profit performance of fashion retailers such as Next PLC. The prime issue in the UK market is the general ageing of the population. The ageing population may opt for next PLC to around the product portfolio in such a way that the product supplied by the company appeals to the existing demographic community. Additionally, the prospect of the ageing population is a competition for the youngest smaller demographics within the market. In consideration, it is the ageing population that is to be less mobile than the younger customer's leading to a critical advantage for the company given that the online business and home delivery produces a convenient solution for the issue (Ajello, 2016). Another possible social, cultural factor includes increasing cultural diversity with the implementation of varied races and Italy cities contributing towards the social backdrop to the UK social system.

Question 2

Mergers can give Next PLC a scope to grow the market share without the use of any kind of significant risks. It additionally works on eliminating the competition, several mergers and acquisitions work on removing the future competition, thereby allowing business growth (Brueller, Carmeli and Markman, 2018). The cost synergy works on generating more profits while reducing the actual costs. Next PLC believes that combining with one another can give more benefits that operating a business single-handedly

As per the results, a reduction in the unsystematic risks was witnessed during the course of diversification. The mergers can work on reducing the total systematic risk (de Bodt, Cousin and Roll, 2018). The vertical and single business mergers can work on lowering the systematic risks faced while acquiring a business. Buying a firm works on reallocating the resources, in such way that merger and acquisitions can work on increasing the level of efficiency of Next PLC across the firm, maintaining the level of productivity (Maas et al. 2019)

Question 3

Bank loans are the most commonly used source for funding. Considering all banks provide various advantages of customising repayment or personalised service. It is a good idea for Next PLC to look for banks with a good credit track record and excellent credit. Venture capital can be used in the mentioned business as the capitalist takes an equity position in the company and carries out promising but higher risk-based projects (Risberg and Gottlieb, 2019). It works on giving up some ownership or equity of the next PLC to external business partners. Hence it is of prime importance to make sure that the investors bring relevant knowledge and business to the company. Next PLC is emerging in terms of online store, and venture capital can be deemed as a suitable way of obtaining financial help (Yılmaz and Tanyeri, 2016). The government grants are available for business, providing a comprehensive listing of different government programs at provincial or federal levels. However, obtaining the gift may be tough as there is a stiff competition and the criteria for the award are strict. Generally, gifts need the business to match the funds being provided with, and this amount varies depending on the ground. Next PLC requires providing their assessment of expertise while providing a detailed understanding of the project that can help them in obtaining the grants

Question 4

Next PLC works on building a digital image factory to enhance the experience of the customers. This can work on helping the retailer to bring the product back to life and create an immersive experience for the consumer (themarketingblog.co.uk, 2017). The system will be highly flexible and can be used for different devices. The next PLC solely customer-centric business in order to gain more profits for the company, it should work on enhancing the experience of the customers, which can be rightly done through the implementation of technology in modern times (themarketingblog.co.uk, 2017). The technological development of smartphone apps allowed Next PLC to develop the personalised app for making sure that the consumers can find the nearest store and check the product available. This works on creating an effective bridge of online business models operated by the companies. Next PLC must see to leverage the benefits of both traditional and modern ways of doing business (themarketingblog.co.uk, 2017). While technology in the chosen section is mostly perceived as a scope, there exists a possibility of risk. Researchers have expressed concern over leaving behind the highest read as consumers to reach the online business model. Hence, it can be easily stated that if next PLC fails to abide by the growing technology, then it is likely to lose the competition and the discarded by the consumers tend to look for online business models and products (Gill et al. 2017)

Question 5

The recent pandemic created a significant loss for the business. However, Next PLC was forced to sell their headquarters and three warehouses for surviving the current pandemic. Next, PLC plans on leasing back these properties, making sure that there is no effect on the stores or staff. In order to make up for the 25% loss of annual sales, the company took this step for ensuring that the business is sustained in the longer run (Haill, 2020). Hence, it can be conclusively stated, and the coronavirus pandemic is a major cause of concern for most of the retail business as they are forced to sell their assets. The business may additionally be forced to lower their product prices. The chosen business organisation can be influenced by under pricing or overpricing. Under pricing of a product may be tempting for the customers as it triggers their buying behaviour. Low prices make customers doubt product quality (Xia and Bechwati, 2017). Under pricing is a tricky long term strategy, as business owners gain a limited profit that may not be enough to sustain the business for a longer time. Furthermore, the company is dependent on low prices and demands a continuous stream of high volume sales to remain in a competitive advantage. To overcome the possible challenges, in business, Next PLC has not only created impossible external implications but suggests the company should work on developing a clothing line that addresses and manages the diversity in the context of its own business organisation. Increase in cultural diversity is a source of competitive advantage and possible causes of conflict (Bessière et al. 2019). European Union expansion happens the new member becomes integrated into the union there remains possible chances the trend for increasing diversity in the labour and consumer market is likely to increase contributions to the productivity of the business.

Reference list

Ajello, A., 2016. Financial intermediation, investment dynamics, and business cycle fluctuations. American Economic Review, 106(8), pp.2256-2303.

Bessière, D., Charnley, F., Tiwari, A. and Moreno, M.A., 2019. A vision of re-distributed manufacturing for the UK’s consumer goods industry. Production Planning & Control, 30(7), pp.555-567.

Brueller, N.N., Carmeli, A. and Markman, G.D., 2018. Linking merger and acquisition strategies to postmerger integration: a configurational perspective of human resource management. Journal of Management, 44(5), pp.1793-1818.

de Bodt, E., Cousin, JG and Roll, R., 2018. Full-stock-payment marginalisation in merger and acquisition transactions. Management Science, 64(2), pp.760-783.

Gill, A., Gurău, C., Dana, L.P. and Sánchez, C.R., 2017. Human capital, financial strategy and small firm performance: a study of Canadian entrepreneurs. International Journal of Entrepreneurship and Small Business, 31(4), pp.492-513.

Greve, H.R. and Man Zhang, C., 2017. Institutional logics and power sources: Merger and acquisition decisions. Academy of Management Journal, 60(2), pp.671-694.

Haill, O., 2020. Next Forced To Sell HQ And Warehouses To Survive Coronavirus Pandemic. [online] Proactiveinvestors UK. Available at:

Maas, A.J.J., Heugens, PPMAR and Reus, T.H., 2019. Viceroys or emperors? An institution‐based perspective on merger and acquisition prevalence and shareholder value. Journal of Management Studies, 56(1), pp.234-269.

Risberg, A. and Gottlieb, S.S., 2019. Workplace Diversity and Gender in Merger and Acquisition Research. In Advances in Mergers and Acquisitions (pp. 51-63). Emerald Group Publishing.

themarketingblog.co.uk (2017). Next Plc To Build Digital 'Image Factory' To Enhance Customer Experience - Themarketingblog. [online] TheMarketingblog. Available at:

Xia, L. and Bechwati, N.N., 2017. The impact of price promotions on checkout donations. Journal of Product & Brand Management.

Yılmaz, I.S. and Tanyeri, B., 2016. Global merger and acquisition (M&A) activity: 1992–2011. Finance Research Letters, 17, pp.110-117.

Zimmermann, S., Herrmann, P., Kundisch, D. and Nault, B.R., 2018. Decomposing the variance of consumer ratings and the impact on price and demand. Information Systems Research, 29(4), pp.984-1002.

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