Revolution in retailing
A Dixons Group case study

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Page 1: Introduction

Dixons Group 5 Image 1The use of technology in the retailing environment has created a massive change in expectations about how customers expect to shop in the future. Organisations which adapt to this different focus are going to be the ones that have an influence in the future. This case study focuses on how Dixons Group plc has built on the power of its existing brands and created new brands to strengthen its market position.

If some of the largest and most successful retailing organisations of twenty years ago were to be compared with those of today, the results would be surprising. They would reveal numerous examples of success, failure or transition over this short time period. Theory shows that organisations go through periods of evolution followed by revolution. The retailing industry is about to embark upon the most radical process of change within its recent history. Organisations that do not prepare for this process - and this may include many famous high street names - may not be around for much longer.

Dixons Group specialises in the sale of high technology consumer electronics such as domestic appliances, personal computers, photographic equipment, communications products and related financial and after sales service. The Dixons Group has developed its business through a strategy of both external acquisition and internal expansion. The Dixons Group today comprises seven divisions.

Dixons - first choice for the latest technology and the leading retailer of consumer electronics, offering the latest range of TV, video, PC, photographic and communications technology on the high street and at UK airports.

The Link - leaders in communication technology; the nation-wide specialist high street retailer of mobile phone and communication products and services.

@jakarta - the games console and PC software specialist. A new, dedicated format selling a wide range of PC games console software and hardware through stores and the Internet.

Currys – Britain’s biggest electrical store. As the UK’s largest electrical retailer, Curry’s provides a comprehensive selection of TVs, hi-fi’s, domestic appliances, as well as a wide selection of PCs and communication products. Larger stores offer demonstration facilities.

PC World - the UK’s largest chain of computer superstores. PC World incorporates PC World Business Direct which specialises in direct sales of computer products to business customers. Each store incorporates on-site technical support centres and customer PC training facilities.

Freeserve - the UK’s home on the Internet. The first fully featured internet service available UK wide. Its flotation on the London Stock Exchange and NASDAQ will help Freeserve realise its full potential. Dixons Group plc has an 80% shareholding in Freeserve.

Mastercare - dedicated to customer support. Providing state of the art, delivery and after-sales services for customers of Dixons, Currys, PC World, The Link, @jakarta, and Mastercare Coverplan.

Dixons Group | Revolution in retailing