lign="justify"> Bershka pays lots of attention to constant flow of information regarding customers needs and preferences, «and these are answered with clear market segmentation and product differentiation» (Mazaira et al +2003, p. 223). Each Bershka s store is a source of information for the company since it receives a daily feedback from each store manager regarding «the demands of customers and the sales trends» (Lopez and Fan 2009, p. 281) which is then used by designers to analyze the success of products and use to create new products or modify the existing ones. Store managers possess also great autonomy which allows them to select those products they believe will be in demand from wide and constantly updated offer (Crofton and Dopico 2007). «In particular, store managers have a key role in adapting the fashion portion of the assortment and fine-tuning the fashion-versus-basics mix» (Bernstein Research, 2008). Thanks to the Bershka s centralized logistic centre, «each store can regulate the flow of products itself» (Eriksson and Jonsson 2011).
Company s position on key success factorstries to meet key success factors of the industry by employing particular actions. Customers are an important part of company s business model and every decision that the company makes focuses on customers general satisfaction. That is why, Bershka provides small deliveries twice a week which together with constant feedback from store managers allow the company to respond quickly to customers taste and preferences. Daily analysis of products success by designers also helps the company be more responsive to changing fashion styles. The company also combines differentiation with low cost as it saves some cost by providing small deliveries and by being in contact with store managers (Crofton and Dopico, 2007). Having one central distribution also allows the company to cut some cost just as spending little on advertisement. To differentiate itself from the competitors, Bershka puts lots of emphasis on stores interior and window display which serve as a marketing channel and a meeting point where customers can unite with fashion. Since the price of the products is a vital factor, Bershka firstly identifies the price customers are willing to pay for competitors products and then sets its target price for its products which is lowered by 15%. In order to sustain such prices, the company searches for those suppliers through which adequate margins can be maintained (Chapter 5.2.).
Critical evaluation of chosen issue
The strategic issue selected for this paper concerns market entry strategy of Bershka for Norwegian apparel market. In previous chapters, several important factors regarding the issue were discussed thus this chapter focuses on reviewing them and summing them up to clearly state whether the company should or should not enter the Norwegian apparel market.Norwegian apparel market is an attractive destination for Bershka as the low power of suppliers allows the company to choose those suppliers with whom the collaboration will be the most profitable for the company. Moderate power of buyers lessens the pressure they can exert on prices. Although there are no substitutes for garments, there are some alternatives to retail chain in the form of home-made, custom-made or second hand clothing (Chapter 4.1.). However, their threat is not significant to Bershka as Norwegians are a demanding nation with both quality and eco-friendly orientation (Chapter 4.1. And 4.2.). Although the rivalry is strong on this market, its consequences should not be as sensible for Bershka since the company has a well-developed business model which is vertically integrated thus its dependence on local partners is small (Heres 2007). Moreover, its business concept is successful to such an extent that other companies like Benetton or C amp; A wants to attempt to replicate its particular elements (The Economist 2012). Restrictions concerning the PFOA will not be so influential for Bershka since the company has its own restrictions regarding the PFOA and other chemicals that are used in manufacturing processes aiming to eliminate all PFCs until +2015 (Inditex Individual Action Plan 2012)., There are some conditions which the company should take into account when entering and operating on the Norwegian apparel market. First condition concerns selling Bershka s products also via internet retailing as this form of distribution is expected to gain more and more popularity (Chapter 4.2.). Moreover, most of major competitors, that is H amp; M and Varner Gruppen, already have online shops (Euromonitor 2013g and dailymail 2013). Offering the possibility of online shopping will also allow the company to appeal to younger consumers as they tend to shop online the most often (Chapter 4.2.). Another condition concerns the advertisement. According to t...
