Strategic analysis of Waterstones Essay Example
Strategic analysis of Waterstones future.
The growth in e-commerce for books and other media has caused traditional retail models to re-organise due to their weaknesses.1Waterstones has moved from this traditional model into a multi-channel model that supports multiple points of contact for customers.2
Value identification
The main value adding activities that enabled this model focus on balancing the price and efficiency of online retailers with our traditional in-store service. The main activities contributing to the current value chain is our human capital and strategic alliances.3
Managerial capabilities that led to the alteration of the distribution network, (The Hub), has enabled more independent branches and empowered branch managers to tailor stocks to suit local markets. By encouraging local characteristics and local interests Waterstones community responsiveness4 is improving in a market dominated by supermarkets with standardised selections.5
The participation in various business networks through the formation of strategic alliances and collective strategies has, in recent years, provided customers with more value online and in-store:
Linkages with coffee retail franchises strengthened the existing offering in-store.
Amazon has given Waterstones access to new technologies (Kindle) and licences that have improved online and in-store capabilities.
These collaborative advantages have enhanced the long-term value to the customer.6 Collaboration within these business networks has innovated aspects of the store design, staff skills and organisational structure.
Value justification
These two activities do add value by increasing the variety of products and improving the in-store experience to customers. But the longevity and sustainability can be put under question.7
The issue with some aspects of each value adding activity is that it can be replicated or substituted online. Any competitive advantage gained
The growth in e-commerce for books and other media has caused traditional retail models to re-organise due to their weaknesses.1Waterstones has moved from this traditional model into a multi-channel model that supports multiple points of contact for customers.2
Value identification
The main value adding activities that enabled this model focus on balancing the price and efficiency of online retailers with our traditional in-store service. The main activities contributing to the current value chain is our human capital and strategic alliances.3
Managerial capabilities that led to the alteration of the distribution network, (The Hub), has enabled more independent branches and empowered branch managers to tailor stocks to suit local markets. By encouraging local characteristics and local interests Waterstones community responsiveness4 is improving in a market dominated by supermarkets with standardised selections.5
The participation in various business networks through the formation of strategic alliances and collective strategies has, in recent years, provided customers with more value online and in-store:
Linkages with coffee retail franchises strengthened the existing offering in-store.
Amazon has given Waterstones access to new technologies (Kindle) and licences that have improved online and in-store capabilities.
These collaborative advantages have enhanced the long-term value to the customer.6 Collaboration within these business networks has innovated aspects of the store design, staff skills and organisational structure.
Value justification
These two activities do add value by increasing the variety of products and improving the in-store experience to customers. But the longevity and sustainability can be put under question.7
The issue with some aspects of each value adding activity is that it can be replicated or substituted online. Any competitive advantage gained