Business and Sustainability Essay Example | Topics and Well Written Essays - 3000 words

Business and Sustainability - Essay Example Also, Wal-Mart's presence in 13 international markets including the UK, Canada, Japan, Mexico, Brazil and China, it also allows Asda to foray easily into new markets. (Barnes 2004) The Wal-Mart umbrella not only provides Asda with a strong brand image but also fuels the company's top line growth. Asda's George apparel line started as a small unknown brand in 100 ASDA stores. It is now the second largest clothing retailer in the UK by volume selling in more than 250 stores in the UK. Furthermore, George now has a presence in five other countries including Canada, Mexico, Argentina, Japan and the US. George products are available for men, women, and children and include apparel, shoes, handbags and even eyeglass frames in select stores. (DesJardins 2006) The George brand, known for style and quality, continues to grow in popularity as a favorite fashion choice across the globe. Strong brand image f George allows the group to extend the brand into other product lines. Asda is the second largest chain f supermarkets in UK with a market share f 16.8% as f February 2007. Furthermore, the company outperformed the rest f the retail sector for the first time in three years in terms f growth rate. The overall growth rate f the company was recorded at 9% for the fiscal 2007. Asda's competitors on other hand recorded a low growth rate during the same period. (Thomas 2003) For instance, Sainsbury recorded a growth rate f 7.8%, Tesco (7.2%), Morrisons (3.9%) and Somerfield (-3.8%). This was primarily due to attracting one million new customers through its checkouts and re-evaluation f its customer offer and pricing strategy. Asda can leverage this growth to further enhance its revenues and profitability. (DesJardins 2006) Evaluation f ASDA's non-financial reporting practices Asda has recalled many products in the last year. In August 2007, Asda recalled 115,000 Chinese-made children's bottles in response to a customer complaint regarding the breaking f caps f the bottle. The yellow, pink and orange colored reusable bottles are aimed at children aged three upwards. The recalled bottles were initially priced at 1.25 each then reduced to 63p. Earlier in February 2007, Asda recalled its George kid's snow boot as due to a problem with the toggle that tightened it. Additionally, Asda recalled all batches f its own-brand 500g packs f Simply Porridge due to possible cross contamination with nuts in November 2006. The affected packs contained nuts, which makes this product unsafe for individuals who are allergic to nuts. Product recalls such as these would adversely affect the corporate image and investor confidence. Online shopping has steadily grown in popularity in the UK. It has been estimated that by 2012 online sales will increase by 320%, to 60 billion per annum and would account approximately 20% f all retail sales in the UK. Although the company provides online services, it has a significantly lesser market share than its peers. For instance, the company's biggest competitor, Tesco has 66% f the K's online shopping market. The company's weak presence in this stream f business denies it he opportunity to gain market share in this rapidly growing sector. (Fisher

BMAN 71701 e-Business Coursework Essay Example | Topics and Well Written Essays - 2000 words

BMAN 71701 e-Business Coursework - Essay Example On the sell side threats, the company is faced with the issues of customer threats and entry of new business models (Chaffey 2011). Below is a brief discussion of these competitive threats and their respective levels on business performance. 1. Suppler threats To the glam media company, supplier threat is low and is not likely to influence the company’s performance in any way. Since most of the company has established a long term relationship with its suppliers around the globe. As the company largely deals on fashions, women styles and beauty, there are many willing and potential suppliers around the globe that are capable of giving them their demanded products (Plunkett 2009). Therefore since the company is fast growing and incorporating more and more products into their system, the issue of suppliers is a little threat and can only influence the company’s performance positively , helping it to rise to higher levels and seek new markets (Plunkett 2008). Similarly, the company has invested on agile and adaptable suppliers who are willing to change and transform with every bit of market change. Such companies can withstand technological advancements and can have long term effects on business performance. 2. New digital products threat New digital products is equal a low level treat to the glam media company. The company management has engaged in a series of innovative ideas that largely help the company advance with the technological changes and transformations in the market. The management of the company has ensured that they stay ahead of the market competition through the introduction of new products. Similarly, the company has engaged in a series of market research that enables it to discover the various customer need (Chaffey & Wood 2010). This technique has enabled them to stay firm and effective in the market. As well, the company has extended its services to many countries, and the website is already getting clicks from various parts of th e world. This is a sign that they have conquered the market and effectively penetrated deeper markets. To this extent the company enjoys a large global market share hence ensuring that they stay on top of the market in terms of quality and the most latest products in the market. 3. Threat of new entrants in the market This is a medium competitive threat. The glam media company has largely captured the market and is currently among the leading company in terms of women products and styles. One of the greatest tool that the company initially relied upon was proper market survey and bringing in exactly what people demand (Smith & Zook 2011). New entrants into the market are however a threat since a company may learn of their weaknesses and then use it against them. In addition, entry of new companies in the market may lead to emergence of new and more superior products that will out do theirs. This factor makes new entrants into the company a little threat. Relatively, new entrants int o the market may come up with similar products but different and more lucrative means of advertisement as well as distribution channels. Advertisements play a very major role in company development, thus it sets the basic threshold for competition. Therefore if a company