Sample Management Paper on Boohoo



            Clothing is a basic need and modernity require people to wear clothes for them to look presentable. Boohoo is among the top fashion brands in the United Kingdom dealing with both women and men’s clothing. Boohoo is a public limited company headquartered in Dale Street, Manchester United in the United Kingdom. The firm’s main competitors in the United Kingdom market are H&M, Topshop Topman, ASOS, Matches Fashion, Net-a-porter, and Missguided. The company is an online store that allows shoppers to choose and buy from a range of footwear, accessories, and clothing. Boohoo is a public limited company that was formed in 2006 – even though the company is headquartered in the United Kingdom but it has branches in France, United States, and Germany. The company has about 2,692 employees in its numerous branches across the four countries. The firm was founded by designer Carol Kane and Mahmud Kamani. The COVID-19 pandemic proved the growth of the organization and its sustainability in the United Kingdom market as its sales increased by 45% to 368 million euros in the three months to the end of May in 2020. The success and profitability of the firm is attributed to its use of social media to young and modern customers. Company success is attributed to its market entry and customer-eccentric services.

SWOT Analysis

            The growth of the global fashion industry is inevitable. The competitive nature of the market requires companies to understand to be innovative to satisfy the global growing demand of fashion in the world. However, the industry is dynamic and requires constant creativity and innovation to maintain sustainability in the market (Perry and Wood 2019). Every year fashion manufactures are developing new brands to boost their competitive nature in the market. Consequently, Boohoo is required to have a market analysis to understand their market dynamics. SWOT analysis assists the firm to examine and understand both their negative and positive attributes within a single market analysis that determines how best to improve and to be competitive in the market to gain advantage over their competitors (Lennox 2020). The technique helps the managers of the firm to conduct situational analysis to understand their current strengths, weaknesses, opportunities, and threats that they may face in its current business environment.


These factors are the features that make Boohoo the leading firm in the fashion industry. Additionally, the strengths of the company assists it to penetrate in the new markets. The growth is essential because it leads to increased profit and enhances sustainability of the company. This attribute further protects the organization’s market share by making it competitive in the industry. The following are the firm’s strength in the market that ensures its continuity (Perry and Wood 2019). Boohoo has effectively used technology in the production and distribution of their goods. The company has conducted automation of its activities and it has helped in bringing consistency in quality to the Boohoo products. The process has further enabled the organization to scale up and down based on the demand conditions in the market. The process assist firms to reduce wastage and to know the peak and low seasons for the production and distribution of their products. The monitoring system that is enabled by technology assist to boost the growth of the firm because it leads to customer satisfaction because of the consistence in producing quality products. In competitive business environments, companies should strive to protect their identity and image to avoid losing customers (Lennox 2020). The production of quality products since its inception has led to the growth of the firm and the brand is identified as quality oriented and this helps it to overcome competition from their competitors.

The organization’s market dominance across the world helps it to enjoy the financial advantage in the market. The firm uses this competitive advantage to employ highly skilled workforce that delivers quality work. Additionally, the firm is able to conduct successful training and learning programs for their workers. The process leads to a highly skilled and motivated workforce (Perry and Wood 2019). When workers are motivated their output increases and they develop the urge to grow the firm. Additionally, the process helps Boohoo to hire the most skilled in the industry because they have the available resources to pay for their salaries. Employee development, training and motivation leads to a reduced workers’ turnover and the firm is able to keep the most skilled employees for a longer period (Nash 2019). Therefore, Boohoo has workers who understand their philosophy and core values and are geared to guarantee customer satisfaction in the industry.

Customer-oriented services assist firms to gain competitive advantage in the market because it leads to customer loyalty. Boohoo has been in the business for decades and through their customer-centric services and the production of quality products they have gained loyal customers over the years. The process leads to increase in sales and growth in the number of consumers. Consequently, Boohoo benefits from high levels of customer satisfaction because it is able to retain its current consumers and attract new customers for their various brands in the market (Tariq 2020). Boohoo has a strong brand portfolio that it has built over the decades. The portfolio has leads to the organization’s successful diversification in the production of products and services. Furthermore, the strong brand portfolio creates trust among consumers about the products being produced by the firm (Nash 2019). Boohoo has been able to venture into gender neutral fashions and female fashions market and the investments have been successful due to its strong brand portfolio in the market. The company has further bought numerous fashion companies and transformed their brands to be the bestsellers in the market because of the trust they have created with the customers in the industry (Lennox, 2020). The growth of the firm is inevitable due to their strong market portfolio in the industry.


This section highlights areas where Boohoo can improve to remain competitive in the market. When a firm understand its weakness it can be able to grow its market base, competitive advantage, and strategic positioning in the industry because they have an understanding of the market forces that jeopardizes its growth. The following are the weaknesses of Boohoo in the competitive fashion industry. Organization structures should be dynamic to fit the growing changes in market and business environment. Boohoo conducts numerous expansion activities that are geared towards growing the organization to be accommodate other fashion products. Boohoo’s company structure is only compatible with its present business model (Nash 2019). The rigidity hinders expansion in adjacent projects and may adversely affect the growth of the firm.

The growth of Boohoo has exposed it to challenges of diseconomies of scale. The firm needs constant training and development of employees to enable them align to the firm’s culture and core values (Nash 2019). The high attribution rate in workforce adversely affects the growth of a firm because of the money used in the training process. The amount used to train the increasing number can be channeled in to other sectors by other competitors and make them overcome Boohoo’s leadership in the market (Lennox 2020). The diseconomies of scale because of the expansion process and increased number of employees is detrimental to the survival of the firm in the high competitive market.


Unlike other fashion companies that focus on one line of products, Boohoo offers it consumers a range of products. The range in goods sold by Boohoo is a challenge and threatens their survival in the sector because it gives competitors a foothold in the brand. The Boohoo brand is known for fashions but not any specific kind of fashions for any gender. The entry of competitors who identify to given product may adversely affect Boohoo’s market shares in the region and render them out of business because of the competitive nature of the industry (Nash 2019). Boohoo has its organizational culture and core values that drive their employees in providing quality products to its consumers. Furthermore, the firm’s dominance in the market has led to its buying of rival companies to eliminate competition in the industry. However, Boohoo is not highly successful at integrating companies with different work culture. The process can make the business to lose its identity in the market or use a lot of money in the process of integrating other outlets to understand their organizational culture to enable them provide quality services as required by the firm’s culture.


The fashion industry is dynamic and has a high entry because of its increasing customer base. The survival of Boohoo in the market is dependent on how its curbs competition from the new entrants and other products that have been in the market for ages. Currently, Boohoo has lost small market share in the niche categories because the new market entrants in the segment are taking over the industry (Tariq 2020). The organization has no defined strategy to curb this competition and it poses a threat to their future in the market because the loss of market share is detrimental to their financial growth (Lennox, 2020). Additionally, the profitability ratio and net contribution percentage of the company are below the industry’s average. These statistics indicate that the performance of Boohoo is below the market performance. This challenge can pose a lasting effect on the firm and lead to its collapse because it shows that people are not buying from the brand and it is making losses.


The competitive nature of the fashion industry may lead to reduction in the production and supply of raw materials. Moreover, the supply chain of the raw materials has numerous bottlenecks that may hinder the success of the production of the required fashions. The process requires collaboration and a good relationship between the suppliers and the production company. Boohoo has managed to create a good rapport with reliable suppliers who provide them with constant supply of raw materials to assist them in the production of their goods and to hinder any supply chain bottlenecks in the industry. The process has assisted the organization to be consistent in the production of their goods and to satisfy the available demand in the market. The fashion industry is a conglomeration of processes for the goods to the final product to reach the designated customer. The company has to have distributors and retailers across markets that they serve for the process to be successful. Boohoo has a strong dealer community because of its good relationship with the other stakeholders in the market. The culture developed between Boohoo gives it a competitive advantage in the market. The distributors and dealers promote the organization’s products and further invest in training their respective sales teams. The process allows the marketing and sales teams to understand more about the firm’s policies, core values, and products.



References List

Lennox, T., 2020. Social Media Influencers.

Nash, J., 2019. Exploring how social media platforms influence fashion consumer decisions in the UK retail sector. Journal of Fashion Marketing and Management: An International Journal.

Perry, P. and Wood, S., 2019. Exploring the international fashion supply chain and corporate social responsibility: Cost, responsiveness and ethical implications. Logistics and retail management, 5th edn. Kogan Page.

Tariq, M.H., 2021. The Necessity of a New Consumer Buying Business Model in the Social Media Platform. Educational Research (IJMCER)3(1), pp.82-92.