Predictive Data Analysis and Competitive Advantage of Jade Collections Clothing Retail Stores, Nairobi

Abstract

The objective of this study was to determine the extent to which the Jade Collections retailing store uses predictive data analysis to gain competitive advantage. This study used a case study research design and collected qualitative data from the ICT manager and head of marketing through in-depth interviews. Among the study findings, it was established that predictive data analysis is carried out on a large scale, and this analysis is done at the head office and results cascaded downwards, that is to the branches through the branch managers. Key predictive data at Jade Collections is from sales data. The company also collects social media data though is done on a fairly low scale. The data collected is reviewed by a team of analysts working in the operations department under the Head of the Consumer Department and findings are used to inform business decisions in the company like the introduction of new items, or getting rid of dead stock. The company has improved customer experience by arranging products systematically at the stores and created differentiation by introducing variety of products; as a result Jade Collections has gained competitive advantage. Concerning cost leadership, the findings show that predictive data analysis has had a relative advantage on the sales at Jade Collections because the management makes decisions based on the data collected and analysed, this has improved the clothing apparels understanding of customer trends and customer‟s behaviour. The data collected and analysed also helps them decide on when and how to introduce a new product and make decisions on slow-moving items. Among the study conclusions; competitiveness at Jade Collections and in the clothing retail business at large can be examined from the dimension of cost reduction through the use of technology, high efficiency of the business in terms of service delivery, quality products, and superior customer service and client management. Among others, the study recommends that there is the need to channel more resources towards the utilization of technology. The study suggests that the clothing apparel store should continue to utilize creative online marketing strategies to engage consumers directly and more personally with the clothing brands. Jade Collections should also keep abreast of new developments in the technological front so as to maintain or gain a competitive advantage in the industry.