Business Studies Analysis Paper on Francesca’s Collection

Analysis of Francesca’s Collection

Francesca’s Collection is a multinational company that manufactures designs and markets various women’s clothes, jewelry, dresses, and gifts. The company is ranked among the best innovative companies in the fashion industry around the globe. Francesca’s Collection has much strength and utilizes the available opportunities to widen its market share to compete with other companies globally. The following paper will conduct a strategic analysis of Francesca’s Collection.

General Environment

Economy and Technology are the two highest considerations of Francesca’s Collection since the economy of a country determines the disposable income of citizens that they can spend on Apple products thereby increasing profitability. Additionally, the economy determines how the government will tax the company.

Six Segments of the General Environment

Political. The government can be a hindrance to the company’s activities. Thus, Francesca’s Collection must consider the political influence and political stability in different countries before investing more in products. The government should allow free market economies.

Economic. Francesca’s Collection should consider the economy across the globe since the economy affects company operations. For instance, high taxation levels in different countries could affect the total income of Francesca’s Collection. Additionally, the economy of different nations is undergoing a recession due to financial crisis.


Social. Social factors consider what is acceptable in the community regarding its culture. Francesca’s Collection should consider its target market in different countries.

Technology. Technology is very important in digital marketing. Francesca’s Collection should invest in technology to be competitive in different markets.

Legal.Francesca’s Collection should consider legal factors in their products by respecting the law, rules, and regulations. There should be no bias when selling products. The business should be safe and healthy for society.

Environmental.Francesca’s Collection should consider environmental regulations such as recycling material and using environmental-friendly packaging of Apple products.

Five Forces of Competition

In a perfectly competitive market, there are many sellers and buyers. Thus, there is a need for competitive strategy. According to Mishra (2017), the competitive market characteristics are high discounts, low prices, branding, incentives and gifts, the uniqueness of the product, the advertisement, and business language. Francesca’s Collection faces five forces of competition which include high competition in the fashion industry, bargaining power of clients, bargaining power of suppliers, threat of substitute products, and the threat of new entrants.

The Competitive rivalry and the threat of substitute products are the two most significant for the corporation. Competitive strategy is good for business since it enables Francesca’s Collection to acquire a huge market share even if there are other competitors in the market. Strategies enable the organization to make more profits. It also enables the company to compete favorably in the market environment, and in some cases, forces competitors to leave the market.

Competitive rivalry determines the number of competitors in a given marketplace. The intensity increases as the number of the competitors for the company and what they are capable of offering to the customers increase. Consumers can easily switch from Apple to a different company offering the same product at a lower price (Mishra, 2017). In such situations, Francesca’s Collection must have a pricing strategy to maintain its customers. Lowing prices of products and giving discounts is one of the solutions the organization applies to maintain their customer and motivate them to buy more products or services.

Bargaining power of suppliers is one of the forces for a competitive strategy of Francesca’s Collection that examines how much control and power the business’ supplier has. Bargaining the price of products or services lowers the organization’s profitability (Saravanakumar & SuganthaLakshmi, 2012). When the suppliers are fewer in the market, the more power they have. When many suppliers offer the same products, Francesca’s Collection is in better control since it has options.

Bargaining power of customers entails the power consumers have to influence the quality and pricing of products and services. When there are many sellers and a few buyers, the customers have the power since they have options of switching to different sellers. In such situations, Francesca’s Collection has to apply selling strategies to be profitable. Good branding and high-quality packaging attract more customers to a business. According to Merritt (2014), good business language that is friendly to the customer helps to attract and retain more customers. The language used in the company should be convincing, and the organization should serve customers with integrity and ethical conduct.

In regards to the threat of new entrants, Francesca’s Collection should examine it in terms of how easy or hard is it for a new firm to join its market segment. If entering the market is easy, then a new firm places a greater threat to Francesca since it will take up some of its market share. Barriers to entering the market favor Francesca’s collection as they make it hard for new firms to join the market.

The threat of substitute products is significant since it means that consumers can easily switch from Francesca’s products to those of other firms. The number of competitors in the market is a factor, in this case, since Francesca’s Collection will be forced to lower their product prices to attract more customers. However, the company must consider its profit when lowering prices to avoid losses.

External Factors


Francesca’s Collection has established online payment methods, which give the company an added advantage since it can deliver its products and services worldwide. The online payment method is an innovation which the company has adopted successfully and has enabled it to increase sales thus contributing to the company’s total revenue generation positively.Another opportunity are the new and innovative ideas. The availability of technology in Francesca’s Collection is leading to the innovation of new ideas that are better. The innovation makes the company more competitive in the market.



One of the greatest threats that the company faces is the competition from other related corporations in the industry such as H&M due to the major innovations that it has been developing. The company must adopt the current trends in the market to maintain its competitive advantage in the market. The company should be keen on every strategy it applies to be able to outdo its competitors.


The strategic analysis of Francesca’s Collection reveals that it requires transparency of its employees and values a highly accountable workforce. It requires high levels of honesty and integrity among all its employees. The company expects the employees to dress appropriately and to maintain sanity to build professionalism. In addition, by creating a culture of creativity and innovation, the company will be able to stay at the forefront in the fashion industry and maintain a sustainable competitive advantage. Overall, Francesca’s Collection is in a good and healthy position to become a dominant force in the future.




Merritt, K. (2014). Marketing services vs. products – is there a difference? MarTech Education. Available at:

Mishra, C. S. (2017). Competitive Advantage Logics. Creating and Sustaining Competitive Advantage, 3-34. doi:10.1007/978-3-319-54540-0_1

Salaffi, F. (2016). Telemonitoring intensive strategy in early rheumatoid arthritis. Http:// doi:10.1186/isrctn13142685

Saravanakumar, M., & SuganthaLakshmi, T. (2012). Social media marketing. Life Science Journal, 9(4), 4444-4451.