On the basis of discussions carried out in the paper and different strategic management model that has been utilized in the paper, the writer of this paper believe that although Next PLC's present performance is in line with the industry's norms and the firm has been currently successful in accomplishing some of the major goals and objectives. However, the present success of the firm is no guarantee that the firm will continue to dominate the clothing industry in the country and will continue to enjoy high profitability and market share (DataMonitor, 2010). Most of the problems that could affect the performance of business organization are due to the fact that the firm's primary industry is passing through the decline stage of the product life cycle, and Next has been doing nothing in terms of product or process development to reverse the trends and take a fresh start. This is evident from the fact that the firm experience a decrease in sales during last year, however the Directory sales of the firm give a little boost to the organization and the firm realize an overall 4 percent increase in terms of total sales growth (Wood, 2012).
The prevailing depression in the country has affected the purchasing power of consumers and foreign firms particularly those belonging to countries like China, and India are capturing the market demand through their ability to market different products in much more lower cost than what the organization charge from its customers (Next, 2011). In addition, the supermarkets and variety stores in the country are capturing increase sales from high street retailers due to their abilities to offer different assortments at comparatively lesser prices than what Next or other high street retailers are offering (DataMonitor, 2010). Moreover, due to widespread penetration of internet and telecommunication technologies in the country as well as other parts of the world, increasing number of individuals are taking interests in the online purchasing. This trend is particularly high in the upstream market segment that the organization was previously serving who have now shifted to online designers and are getting their needs satisfied from such retailers who not only belong to UK but from different parts of the world (Independent, 2012). This in turn means that at the upstream market the inability of the organization to integrate modern technologies and develop online business has been adding to decrease in the firm's revenue, while in the lower segment of the market, the price based competition and the emergence of low cost brands are affecting the performance of Next PLC (GourmetRetailer, 2009).
Next in order to continue its market position in the UK clothing markets need to work out a strategy that could enable the organization to better capture the emerging trends. For this purpose the firm will be required to work at both the upscale market segment as well as the lower end of the market and should have different brands that could enable the organization to capture the market opportunities. In addition, the organization also need to adopt the latest ICT and as most of the firm's competitors have shifted towards offering their products in the online manner, the organization should also workout such strategy that will enable the firm to better capture the market opportunities and reverse the declining trend that the firm has been experiencing as a result of declining conventional store environment shopping.