There are no real substitutes. Substitutes can be within the same clothing category. Therefore the threat of substitutes is low.• Next has a huge investment base and the shareholders are keen to invest in Next because they have been generating high returns for the investors in the past few years.
• There are more than 55 retail outlets in the UK which provides a very good platform for Next to generate sales.
• Organizational culture is as such that it has been focusing on customer service and customer satisfaction.
• Next’s positioning is very well communicated and the consumers are very much aware of what to expect from Next.• Next has an extremely efficient online presence which is customized for many countries.
• Next has managed to lower its prices by lowering the manufacturing costs.
• The quality has not suffered even after lowering the prices. They have maintained a high standard of quality over the years.
• Delivery system is quite unique and innovate which is not easy to replicate.
Value chain analysis basically describes the whole process of how the raw materials are bought and then processed to be sold to the end customers. The value chain analysis can be classified into two categories: 1) Primary Activities 2) Support Activities. Primary activities are those activities which are directly involved in the creation and delivery of the product. Support activities are those activities which are not directly involved in the creation and the delivery of the products but it can affect the efficiency of the processes. Strengths and weaknesses of a company can easily be identified from analyzing the value chain of a company.