Analysis On Value Creation And Internationalisation Process Of Topshop

1228 words - 5 pages

Introduction
In fashion industry, fierce market competition is faced by all the participants in different countries and regions in the globe. How to keep the competitive advantage and achieve the expansion of market share is a major problem that is expected to be solved well by the fashion organisations. In this report, it aims at analyzing the value creation and internationalisation process of Topshop in details. In the following, it is made up by three major aspects. In the first aspect, it indicates the existing context faced by the organisation. In the second aspect, it focuses on learning the performance made by the organisation in value creation and internationalisation process. In the third aspect, it further makes evaluation of the effort and performance made by the organisation.

Existing context of Topshop
In accordance with Porter’s diamond model, there are six elements that should be considered in learning the context of the organisation (Bakan and Dogan 2012, p.446). The factors of production are involved with labour force, capital and organisational resources. The organisation has been found for a long period. With the smooth development and sufficient experience of operation, the factors of products are kept well by the corporation. The market demand of fashion industry is kept stably. Considering that the fashionable products are capable of achieving repeated and constant consumption, the demand is maintained in a stable and high level (Topshop 2014). In current stage, Topshop is still specialised in designing, manufacturing, and selling the fashion products. The relevant industries have not been developed and covered comprehensively. The organisation has implemented differentiation strategy. That is to say, the characteristics and differentiation of the products and service are maintained well by the brand. Based on this approach, the customer loyalty, sales volume, and market competition are all handled. In accordance with Porter’s diamond model, the last two factors refer to government behavior and opportunities. The existing operation and behaviour made by the government are beneficial for the development and growth of the organisation in both the original market and the newly developed market. In its development and globalisation, the context faced by the organisation is basically beneficial and satisfied.

Value creation and internationalisation process
Topshop has taken much effort to achieve value creation and internationalisation process. In accordance with Porter’s general competition strategy, the organisation has implemented differentiation strategy actively (Byun and Mann 2011, p.195). The company pays much attention to value creation. On one aspect, the product design is integrated with manufacturing process. The product design is updated frequently and regularly. In each period, when the products are finished, the manufacturing department will follow the design and make the finished products rapidly (Swoboda, Pop...

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