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Posted on August 30th, 2012, by

Topshop is one of the largest clothes stores in the UK that operates internationally. The company has developed successfully, especially in the second half of the 20th century. In spite of a slowdown in its development in the late 20th century, today, the company attempts to take the leading position in the British market and conducts aggressive competitive policies to enter new markets worldwide. In addition, the company attempts to expand its product line. For instance, traditionally, the company was oriented on female customers but, in the 1970s, Topshop enlarged its business and a new brand, Topman, which was oriented on male customers. Nevertheless, female customers still remain the main target customer group for Topshop and the company attempts to maintain customers’ loyalty and expand its business internationally, using the full potential of its brand.

Parent company and affiliated structures

Topshop is a part of the Arcadia Group, which comprises a number of affiliates. In this regard, it is worth mentioning such renowned brands as Burton, Dorothy Perkins, Miss Selfridge, and Wallis. Topshop is a constituent part of the Arcadia Group that helps the company to develop its business successfully due to the back-up of the parental company. The latter is particularly helpful in terms of the international market expansion Topshop is currently implementing. At the present moment the company has stores in more than 20 countries, being represented in largest cities of the world, including New York, London, Liverpool and many others.

Size of the organization

The company is expanding its business and, today, Topshop is a large company operating in more than 20 countries of the world. The company tends to employ local professionals as well as celebrities. In this respect, it is worth mentioning the fact that the company has employed Kate Moss who designed her first collection for Topshop. Today, the company employs over 60,000 employees worldwide and the number of employees is constantly growing to meet the growing demand of the company in the labor force, which naturally derives from the international market expansion of Topshop.

Marketing segment

The company was traditionally oriented on the medium segment of the market to make its products available to large masses of customers.

In such a way, the company attempted to maintain its steady development and relatively high revenues. However, in the late 20th century, namely in the 1990s, the company has started to enter the premium segment of the market. To put it more precisely, the company introduced the Unique line of clothes targeting at the upper, premium segment of the market. Moreover, the company has started to participate in a show at London Fashion Week on the regular basis and Topshop was the only high street brand to do so. IN such a way, the intention of the company to enter the premium segment of the market is obvious.

Merchandizing segment

The merchandizing segment of Topshop basically meets its marketing segment. The company was traditionally oriented on the mass customers but, in recent years, Topshop has started to enter top or premium segment of the market. Consequently, the company was naturally forced to change its merchandizing policies to meet new requirements and needs in order to implement successfully its new production and marketing policies.

Geographical area

The company is oriented on European market mainly. In fact, Europe is the traditional market, where Topshop’s brand is renowned and popular. To put it more precisely, the UK and Ireland were traditionally the major markets for Topshop, but gradually the company expanded its business in Europe, focusing on such countries as Spain as well as Eastern European countries, including Poland and Russia.

At the same time, the company was always concerned with the American market which was strategically important to Topshop. Hence, the company developed its business in the US. In recent years, the company has started to develop its business in Asia, including Singapore, Malaysia and other countries, where the company has larger opportunities to develop production facilities to minimize costs of production due to lower labor costs compared to Europe.

Population trends in the area

The target population of the company in all of its target markets, including the UK, is women of different ages but mainly the company is concerned with adult women from the early 20s to the age of 50s. However, the age segmentation of the target market is relative and strict because the company tends to the expansion its market share offering new products to female customers mainly. Moreover, after the introduction of a new brand, Topman, the company has the potential to focus on the male customers that opens larger opportunities for the ongoing market expansion.

Site location

Today, the company operates in more than 20 countries of the world but the UK is still the major target market, where the company’s position is particularly strong. Topshop has its stores in London, Liverpool, and other cities. In this respect, it is worth mentioning the Oxford Street, the world’s largest fashion store, which is the home to Topshop’s flagship store.

Competition locus

In spite of the efforts of the company to expand its market share and to enter new markets, the company faces a strong competition. In fact, the competition grows stronger because, in addition to traditional rivals of Topshop, the company faces the rivalry from the part of companies operating in the premium segment of the market. As a result, the company needs to improve its position even more to afford the increased competition and to maintain a positive marketing performance. On the other hand, globalization opens larger opportunities for the company to develop its business internationally that improves its competitive position because the company can use the positive image of its brand and its popularity along with affordable prices to attract new customers worldwide.

Range of goods and services provision

The company’s products are predominantly female clothes and female retail fashion, while its services are focused on the customer satisfaction, including the provision of company’s products and their delivery to customers. At the same time, today, the company attempts to provide the wide range of services to increase the customer satisfaction.

Internal organization

The overall success of the company is, to a significant extent, determined by its effective organizational structure. In this regard, the internal structure is particularly important because it defines the effective of the organizational performance and the effectiveness and productivity of work of company’s employees. The company has a vertical integrated organizational structure, where each employee and manager is responsible for his or her scope of functions. Employees of the company can operate relatively autonomously but under the control of managers to meet standards of the company.

Conclusion

Thus, taking into account all above mentioned, it is possible to conclude that Topshop keeps progressing and expanding its business internationally. Being a part of the Arcadia Group, Topshop advances its products to customers worldwide and, today, the company operates in more than 20 countries of the world, focusing on European, American and Asian markets. Its current marketing performance is positive and the company has good prospects for the further growth and development.

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