Essay on Dixons Retail Case Study

2364 Words Nov 9th, 2012 10 Pages
Dixons Retail PLC Planning for a Multichannel Future
Dixons has grown from a one-man band into a fully orchestrated international retail and service operation, which attracts over 100 million shoppers to its stores and online businesses. How did the company get started and then develop into Europe’s leading specialist electrical retailers? This case explores the significance of adopting a market-orientated approach to planning in developing a family of successful international retail brands.
Background: start-up to market leader
Dixons started out in the photography business during challenging trading times in the early 1940s. By the 1960s the original photographic studio had developed into a relatively large public limited company,
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1 | No. 1 | No. 1 in Greece, No. 2 in Italy and Czech Republic | Leading pureplay retailer in Europe |

Products to markets: ‘stack-em high – sell-em cheap’ to ‘bringing life to technology’
Clearly, over its history, Dixons has developed a robust business model but the customer has not always been at the heart of business planning. In the past the group’s competitive position largely revolved around a product-focused approach and the strategy was ‘stack-em high – sell-em cheap’ in brightly coloured stores, which attracted customers by being packed with new and exciting electrical goods. However, customer satisfaction was often overlooked as it was not central to this strategic approach – something which had not been missed by some of the brand’s competitors.
Change was needed and the condition of the marketing environment and the behaviour of competitors prompted Dixons to consider where the company was heading. In 2006 economic forces were threatening to affect market performance. Signs of trouble in global financial markets and recession were looming large. As a result the competition for market share intensified. Dixons and other UK retailers like Kesa (owner of Comet plc until 2012) set about developing strategies to secure their future. Global players also showed interest in UK markets. Best Buy, the leading US retailer, believed it had spotted an opportunity in the UK consumer electronics market. The company thought consumers in the UK were

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