Background Information on Boohoo.com

Boohoo.com serves as one of the leading fashion retailers in the United Kingdom with itstarget base being customers between 16 and 30 years.   Boohoo.com was created in 2006 and has over the years been successful in capturing a significant regional market. Boohoo.com has its fashion brand that comes with over 36, 000 products. The headquarters of the organization are Dale Street, Manchester.

Contrary to other retailers, it is worth noting that products by Boohoo.com are own-branded. It is worth noting that the company has activeoperations in over 100 countries such as France, Germany, and the USA. The success of Boohoo.com can be traced to the innovative products and aggressive marketing approaches. Since 2012, the Company has been active in using social media platforms for marketing activities.

SWOT Analysis of Boohoo.com

1. Strengths

• com has extensive and robust distribution networks that allowpushingits products to new markets.
• The company has a strong brand portfolio as compared to other rival retailers in the fashion industry.
• The automation of itsprocesses has helped lower the operational costs while equally increasing the revenue levels.
• It has in the past engaged in acquisition and mergers thus strengthening its market position and countering the threat of market players.

1. Weaknesses

• The organizational culture is viewed as being only compatible with the existing business model thus limiting possible expansion to other areas.
• There exist some gaps in the good/ product range, therefore, increasing the risk of turning to other substitutes.
• The current technology is limiting as there is inadequate integration of all operations at both regional and global levels.

1. Opportunities

• The low inflationlevels in the economy imply that there will be stabilizing of business operations thus increasing profits levels.
• The use of online platforms has the benefit of increasing the number of customers as the operations are not restricted to geographical boundaries.
• Trade agreements in the region allow for market expansion and better collaboration with other market players.
• Increase in customerspending levels and economic uptick are likely topropel the sales levels to better performances.

Threats

• Local distributors and brands are a major threat to the operations of Boohoo.com and may lower the profitmargins.
• The demand for fashion product is seasonal; hence the need to come up with innovative and trendy products on a regularbasis.
• The exit of the United Kingdomfrom theEuropean Union is a significantthreat to the brand as this may see the creation of tariffs and other restrictions thus limiting free trade with other countries.

PESTEL Analysis of Boohoo.com

1. Political Factors

The UK government is stable and has effective foreign policies that foster both regional and global trade. The low taxation policies in the UK have allowed Boohoo.com to earn huge revenue levels (Fill and Turnbill, 2016).

1. Economic Factors

In the past five years, the United Kingdom has registered impressive economic growth. There has been a reduction in the level of unemployment, reduced taxation, and inflation rates. These factors provide the required incentives to propel the expansion of the Boohoo.com.  Nonetheless, economic instability may affect the consumption trends thus reducing the revenue levels (Chaffey and Smith, 2017).

1. Social Factors

The country has improved quality of life, high literacy levels, and culturally diverse groups. The UK populationmainlycomprise of the young and working class. The group has a high disposable income thus increasing the consumption. Nonetheless, the high education levels imply that the population is conscious of the products they buy. The customers are sensitive to factors such as price and quality of the products.

1. Technological Factors

Technology is swiftly disrupting the infrastructures of manybusinesses as there is an emphasis on adopting online platforms. The United Kingdom has improved communication and internet connection thus making it possiblefor Boohoo.com to integrate its operations with other organizations and processes. The fast technological changes may provechallenging for the Boohoo.com to cope with while also maintaining high-profit margins (Hanlon, 2019).

1. Environmental Factors

In recent years, there is a growing emphasis on the need to adopt sustainable business operations that consider theenvironmental, social and economic impacts of the operations. The United Kingdom has put in placestringent regulations that ensure that business operations do not disrupt the environment. There is regular scrutiny by UK agencies to ensure that there is compliancewith all the set laws.

1. Legal Factors

The operationsof Boohoo.com must be seen to meet the safety and Health regulations in the United Kingdom. There are also laws that cover intellectual property, copyrights, workers’ rights, environmental conservation, and other areas. It is critical to note that the violation of these regulations may attract heavy penalties as well as taint the public image of the organization.

Market segmentation

Geographically, the operations of the company are concentrated in Europe as compared to third world countries or Asia. European countries tend to have improved economies that guarantee high revenue levels. The products are further tailored to meet the trends and tastes within the European market. There is also the segmentation of the market using age as the brandsmainly target young persons who are seen as being enthusiasts of fashion trends.

Targeting

The Company mainly target customers who are between the age of sixteen and thirteenyears. The age bracket mainlycomprises of a young population. The group is seen as having a great interest in fashion and also account for the highest portion of the United Kingdom population. The determination of the target market allows the company to come up with products that fit the tastes and preferences of the customers (Hanlon, 2019).

Positioning

The brand is marketed as being a quality and affordable as compared to other rivals. The company has in the past sought to ensure that it places its products on online platforms. Online platforms allow for customers in different parts of the globe to order and pay for the products. Moreover, it creates a virtual store where the customers can access the features of the products.

 

 

 

 

 

 

 

 

 

Perceptional Map

High Price

 

Marks & Spencer                                                                 House of Fraser

Debenhams

 

 

Narrow Range                                                                                                             Wide Range

 

 

River Island

Boohoo.com

Primark

Low Price

The perceptual map indicates that the Boohoo.commainly target middle-income customers with a narrow range. The argumentrests on the fact that the brand is lowly priced thus attracting the low-income earners. In this segment, the brand faces competition from River Island and Primark. There is, therefore, the need to come up with other measures that can be used to differentiate the product as a way of gaining competitive advantage in the market. The brand can be defined as being well-positioned and perfectly fist in both the regional and globalmarket.

 

 

Reference List

Hanlon, A., 2019. Digital Marketing: Strategic Planning & Integration. SAGE Publications Limited.

Chaffey, D. and Smith, P.R., 2017. Digital marketing excellence: planning, optimizing and integrating online marketing. Taylor & Francis.

Fill, C. and Turnbull, S.L., 2016. Marketing communications: brands, experiences, and participation. Pearson.

 

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