Explain the Factors That Have Contributed to the Survival of Wh Smith Plc Since 1996.

On factor that has contributed to WH Smith surviving since 1996 is the major strategic review that they undertook in 1996/7. This is because they decided to primarily focus on the core of the business by retailing books and magazines. This lead to the business being more products orientated. Also this enabled them to increase the sales of their core products and come to be known as a good supplier of books and magazine. Therefore the popularity of the business grew and thus the sales revenue increased which in turn increased the overall profits of the business. Another factor that has contributed to the survival of WH Smith since 1996 is that they began to sell off all of its diversified businesses, starting off with Do-It-All. This is because these businesses were not making a healthy profit and were not orientated around the core business. This lead to the business being able to get rid of the costs of the diversified businesses and therefore, in turn maximise their profits.

Thirdly another factor that ensured WH Smith was able to survive was their expansion in 2007/8. This was when they decided open franchise units in 85 motorway service stations. This is because it created a monopoly for them and they were able to dominate the market. This lead to the sales revenue growing and therefore the profit increasing. Also they are able to expand quickly through a franchise and they take home there cut and the franchisee would have to deal with the losses if there were any. Another factor that helped WH Smith to survive was the purchasing of their closest rival John Menzies. This is because they now had less competition to deal with. This lead to the business having a higher market share, so they are able to dominate the market. Also this lead to a higher customer base and a higher amount of footfall in front of more outlets. This would lead to an increased potential for higher profits. Also with the acquisition of the new firm more sets of employees and executives...