Description

⦁ Abstract

This report aims to do research and analyze data on Next plc online. First of all, the background information will be discussed this includes the CEO, business undertakings profits, and current financial position. The business product trends in strategic management will also be discussed. The business competitors and methods they use to give their company a competitive advantage will be highlighted in the report. Different changes in the brand names to fit in the online market will be mentioned. Advantages and disadvantages of the strategies implemented will be included in this discussion. Past and present key partners of Next plc online are listed together with the products these firms sell. The software used by Asos is compared with Next plc's dynamic software that is cost-effective. The data handling software depends on the artificial intelligence model to ensure accuracy and efficiency. The future Next plc capital expenditure is forecasted to be 140 million pounds and is less than Asos’s figure due to the difference in cost variability of data handling softwares. Financial analysis of the data is conducted by looking at seven valuation factors, which, according to my research, has led to the determination of the financial position of a firm. These drivers are sales growth, WACC, debt, years, operating profit margin, working capital investment, additional working investment, tax rate, required rate of return, and working securities. Each driver was analyzed to determine its value to make a forecast on next plc in the next 5 years. Analysis of the data is carried out through a comparison of these drivers to assess the correlation rate. Some drivers, like shareholder value, are found to be negatively correlated to other factors. This analysis is essential to make future assessments and make necessary decisions. Other factors are found to influence the value of shareholders, for example the planning and determination of the manager. Finally, a conclusion will be made on the research conducted on Next plc online company.

⦁ Next plc overview 

Next Plc is an online retail store that offers top brand designer clothes, high quality clothing and clothes that are made to wear at home that meets its customer needs and exceeds expectations by providing competitive prices. The current CEO of the company is called Simon Wolfson. The firm has more than five million consumers worldwide, and its website serves over 70 nations. It has over 510 retail stores in the U.K., most of which deal with selling shoes, home products, clothing, and accessories. It also operates 37 combined stores specialized in-home products and fashion. These stores make online delivery successful. Nearly half of the companies' online orders are accomplished through online shops. The company offers 1.2 billion dollars of credit to its customers to buy products online and through its stores, which are next-pay and three-step. It has international franchising stores in half of the countries where its businesses are stationed (Szymański,2018).  

Some designs companies like Lipsy London sell their own branded goods and services through NEXT online in most stores. Hong Kong-based international sourcing for the firm design and sources its product competing with other businesses across global market. The company is unique in that its network of stores and online sales has enabled it to create an authoritative site for selling homeware clothes and design in the U.K. over the last ten trading years. The online retail company has improved its website from selling a single product to a multiple product site dealing with home brands, clothing, and footwear. Other brand's goods were sold through LABEL this year, and businesses continue to grow in that sector. A total of 400 million dollars were sold in this market. 

The online business has been successful due to the flexibility of its operations and offering cost-effective prices on its products to maximize the chance of growth online and minimize adverse effects (Szymański,2018). It has maintained a constant reinvention process within its business to preserve product integrity, increase profits, and maintain quality operation. It partnered with other online firms that sold the same products and also included firms with new brands. Through stock management, brand sourcing, and cost controls, the firm was able to increase its EPS and share prices by 170% and 330%, respectively. It has focused on satisfying customer needs and making their shopping experience suitable by increasing online credit and customers who shop by cash.

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