Debenhams Plcs Competitive Position in Its Various Markets - Essay Example

The gross profit margin is at 13.59%, while the net profit margin is at 5.6%. Return on equity and assets also appear favourable at 18.20% and 6.06% respectively (Global Business Browser, 2014). The company has stated that it would expand its global operations by increasing the number of stores to 150 by the end of 5 years from this day.As per reports, the retail sector of UK has seen a rise in revenue by 1% in its 103 businesses that employ over 123,000 people. Before the crisis, the buying patterns were instinctive and the retail industry was booming.

After 2008, the economy has somewhat stagnated and hence, has put a dent in sales. High levels of unemployment have led to lower levels of disposable income and lower consumer confidence because of which discretionary purchases have been forced to cut back. It is expected that the retail industry shall post the decline in the forthcoming financial year 2013-14 to the tune of 0.8% (Ibisworld, 2013).The paper aims to bring forth a comprehensive analysis of the company in the market where it operates.

The paper shall seek to throw light on the competitive position of the company in relation to the markets within which it operates through Porters Five Forces, PEST, and Porters Generic Strategies. It moves on to discuss various cross-cultural issues that the company has come across in present times and how these were dealt with Hofstede's five dimensions and Trompenaars seven dimensions model. The paper also analyses the company’s CSR attempts with a view of sustainable growth objective for various groups of stakeholders.

The paper concludes with a discussion of the present position and standing of the company in relation to its peers and future growth prospects.The paper tries to make a justification regarding the strategies being followed by Debenhams Plc and attempts to draw strategic directions for future market analysis. A study of the external environment and cultural challenges brings forth the trend of challenges faced by Debenhams while the internal study and CSR initiatives highlight the key sustainability attempts towards challenging competition in retail business.