Arcadia Group is one of leading retailers in UK. Arcadia have nine band of retail stores in UK (namely: BHS, Burton, Dorothy Perkins, Evans, Miss Selfridge, Outfit, Topshop, Topman and Wallis). Nowadays, Arcadia Group is standing with 600 international stores in 36 countries (Arcadia responsibility, 2011).
The aim of this report is to analyse and evaluate from Arcadia Group to the Indian apparel retail market in order to the possibility expansion of Arcadia Group. The same time will be illustrates from the main of supplier in 56 countries to Indian retailer and to analyse the Indian culture of customers.
Arcadia’s resource base, including both tangible and ...view middle of the document...
Employees can continue to develop their skills, to strong our internal team and to enhance our brands loyalty, because the core value of Arcadia is sell high quality products to their customers (Arcadia Group 2012)
Arcadia’s overall (horizontal and vertical) business network
According to the scope of collaboration (Lee and Carter 2005), it shows the business network of Arcadia Group in figure 1.
From the horizontal network, Arcadia continues to focus on environment. Arcadia with ocean transport cooperation (NYK / Yusen) obtained environmental awards in recent years (Arcadia’s responsibility, 2011). Recently, more enterprises develop green brand, that can create their Corporate Social Responsibility, that the public to understand that the brand culture, and achieve brand permanently sustainable development.
For the vertical network, Arcadia is positioned as a retailer and suppliers are important to Arcadia Group. Although Arcadia Group have 700 suppliers, and the top twenty suppliers support 41% of Arcadia products. And then they have five major suppliers in 56 countries who have relationship with them such as China, Romania, Turkey, India and Mauritius, these top five countries occupy 76% of sources. Because theirs location are different in the world, because they can delivery to different countries of franchised stores soon as possible. Arcadia has strong relationships network of international suppliers, the percentage of 46 of suppliers who have long-standing relationships with Arcadia Group for three years or more than three years (Arcadia’s responsibility, 2011).
Arcadia’s vertical (supply network) collaborations
Arcadia Group has a strong relationship with hundreds of suppliers, and their communication must be no mistakes, therefore, Arcadia Group has a long-term relationship with IBM to develop system sharing information with their partners. IBM has good experience management of e-business between retail and supply chain. IBM offers the web applications by five steps (namely: Purchase Orders, Freight Forwarders Forecasting, Permission To Ship, Onboard Advice and Processing). Because iSeries system used in Arcadia Group have high speed communication and no-error (IBM, 2012). It can be said Arcadia give confidence to suppliers and international stores.
Looking to at future, Arcadia wants to extend transport of air, sea and land. Also this system can easier to know about how many products in different stores. it can be said the Arcadia can make inventory reduction and saving and return Arcadia’s investment. In 2011, Arcadia financial decreased percentage of 1.8, if Arcadia can control their warehouse between suppliers and retailers, in the future, Arcadia will have positive of financial.
Arcadia’s horizontal collaborations
Logistics team is one of key team in Arcadia Group. The team has over 255 million unit transport from 56 countries by air, sea and road. In UK, the team will...