IntroductionNext UK is arguably one of the largest companies listed on the UK stock exchange. The corporation, which specializes in the retailing of household items such as attire and footwear, has branches and outlets in many countries across Europe (Next 2007). The company, whose products are exported to many countries, has been described as one of the most money-spinning organizations listed in the UK stock exchange. Having come into focus during the 2007/2008 accounting year when its net worth went negative, the company has undergone a number of transformations with much of the restructuring focusing on the capital aspect of it.
Talking of capital, the company has taken a big step in moving from equity funding to debt financing. This way, they thought, the earnings per share could change significantly. This paper seeks to report on the current position of the company in light of financial performance, capital structure, competitive advantage as well as the weaknesses and strengths. The strategic capabilities and competitive advantage of Next UKStrategic capabilities are those strengths that allow a company, an organization or an individual to perform better than other individuals or organizations operating under the same circumstances in the same industry (Kevin 2006).
On the other hand competitive advantage is the capability of an organization to perform better than competitors in the same industry, given the same amount of resources and operating under the same legal and economic framework. In essence therefore strategic capabilities are long term strengths that may enable an organization to perform better than competitors in the same field over time. It is important to understand that strategic capabilities are internally generated strengths that propel the performance of a company making it appear better than competitors.
For our purpose, Next UK shall be evaluated with the main objective of trying to establish the internal procedures and practices that have earned it the competitive advantage it is enjoying over other organizations. Arguably, one of the most important ways through which trading concern can gain competitive advantage is through thorough marketing (Rivoli & Waddock 2011). The efforts of the marketing department of any going concern determine the organization’s direction and relative position in the industry.
Talking of marketing, Next UK is one of the most active organizations in the industry of clothing and home ware. The company has invested a lot into its marketing activities. It is for this reason that the managers have elected to use all the available channels of marketing. The prominence that the company has given to online marketing has been credited for the successful marketing strategy. The company carries out its e-marketing through many websites and search engines, its home website being the most prominent medium. Through the use of such important innovations as the search engine optimization feature, the company has gone an extra mile in capturing the attention of online shoppers in Europe.
This company is arguably the strongest and most aggressive UK-based Corporation. The links they have established in many online networks are strong and well maintained. Today, an online shopper anywhere across the world can access the information on the products being sold by Next UK since the database of the company is connected to various blog spots and social networks (Next 2008). The company has fan pages and profiles on the key social networks, Facebook and twitter being the most prominent.
Through such social sites as Linked In the organization sources for human resources besides carrying out intensive marketing. Such intensive marketing gives Next UK a competitive advantage.