House of Fraser Strategic Group Mapping
Business Policy Assignment
083623882
John Sanders
Business Policy
2nd November 2010
1. Construct a strategic group map locating House of Fraser’s competitive position within the United Kingdom’s department store industry. Make sure you provide a rationale for each companies or groups position.
The following table has been created to correctly understand the strategic characteristics of several market leaders as mentioned in the case study. This table will aid in the readers understanding of the differences and similarities between these market leaders and will act as a method of comparison.
Table 1
Market Leaders Comparison
Company (market share) | Strategy | Price | Breath of products | Quality/styling | Number of stores | Self-Branded Lines | | Low Cost Strategy | Premium | Limited | Good | 685 | High | | Broad differentiation | Above Average | Extensive | Good/superior | 26 | Average | | Broad differentiation | Average | Extensive | Good | 144 | Average | | Broad differentiation | Above Average | Extensive | Limited | 62 | Low | | Broad differentiation | Premium | Extensive | Superior | 1 | Low/Non-existent |
As is evident from the above table, House of Fraser offers a wide range of premium products and services from perfume to personal shopping. As a company which charges high prices, but not as high as some market competitors, House of Fraser is able to position itself as an affordable option within the upper half of the mass market. During recent years, particularly during the current economic climate, the success of the company has been well publicised alongside its continued growth in sales and with its ability to maintain brand loyalty, House of Fraser dominates the market above Marks and Spencer, John Lewis and Debenhams.
Harrods, a large department store, is House of Fraser’s main competitor and it occupies a clear-cut position within the department store market.
Figure 2
Strategic group map of
083623882
John Sanders
Business Policy
2nd November 2010
1. Construct a strategic group map locating House of Fraser’s competitive position within the United Kingdom’s department store industry. Make sure you provide a rationale for each companies or groups position.
The following table has been created to correctly understand the strategic characteristics of several market leaders as mentioned in the case study. This table will aid in the readers understanding of the differences and similarities between these market leaders and will act as a method of comparison.
Table 1
Market Leaders Comparison
Company (market share) | Strategy | Price | Breath of products | Quality/styling | Number of stores | Self-Branded Lines | | Low Cost Strategy | Premium | Limited | Good | 685 | High | | Broad differentiation | Above Average | Extensive | Good/superior | 26 | Average | | Broad differentiation | Average | Extensive | Good | 144 | Average | | Broad differentiation | Above Average | Extensive | Limited | 62 | Low | | Broad differentiation | Premium | Extensive | Superior | 1 | Low/Non-existent |
As is evident from the above table, House of Fraser offers a wide range of premium products and services from perfume to personal shopping. As a company which charges high prices, but not as high as some market competitors, House of Fraser is able to position itself as an affordable option within the upper half of the mass market. During recent years, particularly during the current economic climate, the success of the company has been well publicised alongside its continued growth in sales and with its ability to maintain brand loyalty, House of Fraser dominates the market above Marks and Spencer, John Lewis and Debenhams.
Harrods, a large department store, is House of Fraser’s main competitor and it occupies a clear-cut position within the department store market.
Figure 2
Strategic group map of
References: Dave Pattison. (2004). Harrods Limited. Available: http://www.competition-commission.org.uk/inquiries/completed/2006/storecard/pdf/initial_subs_retailers_harrods.pdf. Last accessed 28th October 2010 House of Fraser. (2010). Trading Statement. Available: http://www.houseoffraser.co.uk/Trading+Update/M114_CAMPAIGN_LANDING_STATEMENT_8th_JAN_2009,default,pg.html. Last accessed 29th October 2010. National Statistics. (2009). ONS. Available: http://www.retailgazette.co.uk/ONS-retail-sales. Last accessed 29th October 2010. National Statistics. (2010). Retail Productivity. Available: http://www.statistics.gov.uk/hub/economy/prices-output-and-productivity/productivity-measures/index.html. Last accessed 28th October 2010.