Next has employed a cost leadership strategy. The major products of Next are their adult fashion wear which is catering to the people of age group 20-40. Next has been selling their products at low prices which has enabled them to cater to a large audience and they have managed to gain a lot of market share in the troubled financial times. Differentiation is not that important for Next because similar alternatives are available for the target consumers at higher prices so they have focused themselves on working on the processes which can cut their costs and enable them to charge a lesser price. Lesser price does not mean that they have compromised on the quality of the products instead they have carefully monitored that the quality does not suffer.
COMPETITIVE STRATEGY ANALYSIS:
Porters Generic Map showed three ways that a company can get a completive advantage. For a great many people and businesses these strategies are very much general and they want strategies to be more specific. On the basis of this, Bowman and Fuller introduced “Bowman’s Strategy Clock”. This was the extension of the porter’s generic map and gave eight strategies instead of three. It can be explained from the figure below: