Technological advancements and changes in the economic environment have had significant influence on the retail industry. These factors have directly impacted on the vitality and viability of most high streets shops while the emergence of e-commerce resulted in closures of some stores and unemployment. However, many retailers adapted to the changes in the business environment leading to even more superior business outcomes than before. For instance, technology has helped retailers to enhance effectiveness of decision making, efficiency of operations, vitality, viability and sustainability of retail strategies. Ashworth (2012) framework of six stages of organisational development helps to understand how a retailer adapted its operations to gain sustainable edge in the contemporary market environment. Based on the case of various retailers, this essay explores the application of Ashworth framework in explaining organization development in the retail industry.
Table of Contents
- Task A: Application of Ashworth (2012) framework of six stages of organisational development in retail industry
- Task B: Opportunities and innovation challenges for an International luxury watch brand
Objectives and Key Themes
This text explores the application of Ashworth's six-stage framework of organizational development in the retail industry and examines opportunities and challenges for international luxury watch brands in a changing market landscape. The analysis uses case studies to illustrate how retailers adapt to technological advancements and economic shifts.
- Application of Ashworth's organizational development framework to retail.
- Impact of technological advancements on the retail industry.
- E-commerce and its effect on traditional retail models.
- Opportunities and challenges for luxury watch brands in the digital age.
- The role of artificial intelligence in marketing luxury watches.
Chapter Summaries
Task A: Application of Ashworth (2012) framework of six stages of organisational development in retail industry: This section analyzes Ashworth's six-stage framework for organizational development within the retail sector, illustrating its application through various case studies. The framework, encompassing stages such as web presence, information competence, value integration, enhanced integration, leveraging processes for value maximization, and business sustainability, is examined in detail. Each stage is explored, highlighting how different retailers – from Wildberries' expansion into online sales in Poland to H&M's strategic online presence in Europe and Prix Workshop's leveraging of social media influence – have navigated these stages. The analysis emphasizes the importance of technological adaptation, strategic investment in e-commerce capabilities, and the development of knowledge management systems for effective integration of online and offline retail strategies. Examples such as MercadoLibre's investment in financial services and Adolfo Dominguez’s adaptation during the COVID-19 pandemic showcase how retailers strategically invest in technology and service customization to gain a competitive edge. The evolution from basic web presence to sustained technological integration and value creation is a central theme, demonstrating how retailers respond to evolving customer demands and market pressures. The chapter highlights the significant role of technology in enhancing efficiency, customer experience, and overall business sustainability. Walmart's shift towards strengthening online revenue streams exemplifies the widespread need for traditional retailers to adapt to compete effectively in the e-commerce era. The chapter concludes by emphasizing how technological innovation enables retailers to effectively identify and respond to customer needs, ultimately ensuring smooth functioning and future success in the industry.
Task B: Opportunities and innovation challenges for an International luxury watch brand: This section focuses on the opportunities and challenges facing international luxury watch brands in the current market. It begins by establishing the context of the luxury watch market within the larger global luxury goods market, highlighting the market's size and recent trends, including a noted shrinkage in the Swiss watch market. The section then introduces Batat's three master drivers of digital transformation (technological, demographic, and socioeconomic) as key factors influencing the luxury retail landscape. The role of technology, particularly artificial intelligence and the increasing investment in digital technologies within the industry, is discussed, illustrating the importance of data-driven growth strategies. The use of tools like Emotional Analytics (EMO) for analyzing social media data and understanding consumer sentiment is presented as an example of how technology can drive market growth. The section highlights a preference for Swiss automatic watches, indicating an area of potential for luxury watch brands. While the analysis centers on the opportunities presented by digital transformation, it also implicitly underscores the need for luxury watch brands to adapt to maintain their competitiveness and appeal to a changing consumer base. The tension between maintaining the prestige associated with traditional craftsmanship and embracing technological advancements for enhanced customer experience and market reach is a key underlying theme.
Keywords
Strategic marketing, luxury watch market, retail industry, organizational development, e-commerce, technological advancements, digital transformation, artificial intelligence, luxury brand experience, consumer behavior, market opportunities, innovation challenges, Swiss watch industry.
Frequently Asked Questions: A Comprehensive Language Preview of Organizational Development in Retail and Luxury Watch Brands
What is the purpose of this text?
This text provides a comprehensive overview of two key areas: the application of Ashworth's six-stage framework of organizational development within the retail industry, and the opportunities and challenges faced by international luxury watch brands in a changing market landscape. It uses case studies to illustrate key concepts and trends.
What are the key themes explored in this text?
The main themes include the impact of technological advancements on the retail industry, the role of e-commerce, the challenges and opportunities for luxury watch brands in the digital age, the application of artificial intelligence in marketing, and the importance of adapting to evolving customer demands and market pressures.
What is Ashworth's six-stage framework of organizational development, and how is it applied in the retail industry?
Ashworth's framework outlines six stages of organizational development: web presence, information competence, value integration, enhanced integration, leveraging processes for value maximization, and business sustainability. The text analyzes how various retailers, such as Wildberries, H&M, Prix Workshop, MercadoLibre, and Adolfo Dominguez, have navigated these stages, highlighting the crucial role of technological adaptation and strategic investment in e-commerce.
What are the key challenges and opportunities for international luxury watch brands?
The text examines the opportunities and challenges facing international luxury watch brands, considering factors such as the overall luxury goods market trends, Batat's three master drivers of digital transformation (technological, demographic, and socioeconomic), the use of artificial intelligence and data-driven strategies, and the need to balance traditional craftsmanship with technological advancements for enhanced customer experience and market reach.
What role does technology play in the retail industry and the luxury watch market?
Technology plays a pivotal role in both sectors. In retail, it's crucial for e-commerce development, enhancing customer experience, and improving efficiency. In the luxury watch market, technology, including AI and Emotional Analytics (EMO), aids in understanding consumer sentiment and developing data-driven growth strategies. The text emphasizes the need for adaptation and integration of technology to maintain competitiveness.
What case studies are used to illustrate the key concepts?
The text uses numerous case studies, including examples from Wildberries, H&M, Prix Workshop, MercadoLibre, Adolfo Dominguez, and various international luxury watch brands. These case studies demonstrate how different companies have responded to technological advancements and market changes.
What are the key takeaways from this text?
The key takeaways emphasize the crucial role of technological adaptation and strategic investment in e-commerce for success in the retail industry. For luxury watch brands, the balance between maintaining tradition and embracing technological innovation for enhanced customer experience and market reach is highlighted. The text ultimately underscores the importance of understanding and responding to evolving customer needs and market pressures.
- Quote paper
- Difrine Madara (Author), 2020, Strategic marketing in the international luxury watch market, Munich, GRIN Verlag, https://www.grin.com/document/961653
