Planning for growth

AMAN NIAZI
HND 2
Introduction

Debenhams in the United Kingdom is a public quoted company

which specializes in the manufacture and sale of Clothing, home
accessories, cosmetics and toiletries. Founded in 1813, the company
started out as a small enterprise and has now emerged into a
multinational corporation. The organization has grown mostly
through acquisitions. These acquisitions have been of smaller
clothing and cosmetic manufacturing companies, the first being a
small scale company called Marshall Shelgrove in 1919. Debenhams
has outlets, not only in the United Kingdom but also in and around
Europe, Asia and Africa. (UKEssays.com, 2019)
 Key considerations for evaluating
growth options
 Capital: capital is very important for every business small
medium or large and small and medium companies have less
capital to invest. Companies have to look for their liquidity
position for growth of the company.
 Stake holders: stakeholders are interested in the growth of
company like share holders will agree to invest for growth of
the company for higher profits. Employees, managers follows
their leader and whatever they chose they also have to chose
that.
 Competition in the market: competitors are the main
stakeholders of the company. Companies can gain upper hand
through innovative production and unique competencies.
 Ansoff matrix of Debenhams
 Ansoff matrix is a marketing planning model that helps a business determine its product and market
growth strategy. And it calculates the risk which can occur by using these strategies in ansoff matrix.
 Market penetration: Existing product and existing market.
Debenhams should increase the market share of their existing products, this can be achieved by
competitive pricing strategy or advertising. They should secure dominance of growth market, they
should increase usage by current customers e.g by using loyal schemes.
 Market development: Existing product and new market.
Debenhams should enter new geographical markets like introduce their product to new market. They
should consider new distribution channels like e commerce and mail orders , different pricing policies
to attract different customers or create new market segments.
 Product development: New product and existing market.
A strategy of product development is particularly suitable for a business where the product needs to
be differentiated in order to remain competitive.
 Diversification: New product and new market.
Debenhams should adopt a diversification strategy, therefore, it must have a clear idea about what it
expects to gain from the strategy and an honest assessment of the risks. However, for the right
balance between risk and reward, a marketing strategy of diversification can be highly rewarding.
BCG matrix of Debenhams
Star Question mark
 Shoes •Handbags
 Jersey •Watches
 Denim

Dog
Cash cows
 Toys •Perfumes
 Pet accessories •makeup
Competitive advantage

 Debenhams has a competitive advantage because it has

a wide range of products like furniture, clothes, toy,
shoes etc it has many products under one roof which
mostly people appreciate while shopping. It has over 500
stores in all over UK.
Debenhams competitors are marks & Spencer, john
Lewis and house of Fraser.
Evaluations of growth options

 To evaluate key considerations helps the for growth

effectively, ansoff matrix is a very good options for
growth because it has many options in itself like product
development, diversification, market penetration. BCG
matrix helps with long term strategic plan to help a
business consider growth opportunities by reviewing its
portfolio of products to decide where to invest, to
discontinue or develop products.
Recommendation

 Debenhams should add new products which are in trend

 It should increase its market share
 Indentify their ideal customers
 Focus on competitors
Thank you
References
 tutor2u. (2019). Ansoff Matrix | Business | tutor2u. [online]
Available at:
https://www.tutor2u.net/business/reference/ansoffs-matrix
[Accessed 7 Dec. 2019].
 My Accounting Course. (2019). What is a Competitive
Advantage? - Definition | Meaning | Example. [online] Available
at: https://www.myaccountingcourse.com/accounting-
dictionary/competitive-advantage [Accessed 8 Dec. 2019].
 Chad Sorensen - Marketing Portfolio. (2019). Competitive
Advantages & The Unique Selling Proposition. [online] Available
at: https://chsorens.wordpress.com/principles-of-
marketing/competitive-advantages-the-unique-selling-
proposition/ [Accessed 8 Dec. 2019].