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

Abstract

The objective of this study was to determine the extent to which the Jade Collections retail store uses predictive data analysis to gain competitive advantage. A case study research design was used and qualitative data collected from the ICT manager and head of marketing through in-depth interviews. Among the study findings was that predictive data analysis is conducted on a large scale, and this analysis is done at the head office and results cascaded downwards to the branches through the branch managers. The key predictive data at Jade Collections is from sales data and to a smaller extent, social media data. A team of analysts review the data collected in conjunction with the operations departments and the findings are used to inform business decisions in the company, for instance, the introduction of new items, getting rid of dead stock as well as improving customer experience by arranging products systematically at the stores and creating differentiation by introducing varieties of products. As a result, Jade Collections has gained advantage over its competitors. The findings show that predictive data analysis has had a relative advantage on cost leadership as the management makes decisions based on the data collected and analysed, leading to improved clothing apparels, understanding of customer trends and customer behaviour. The information also helps them decide on when and how to introduce a new product and make decisions on slow-moving items. The study concludes that competitiveness at Jade Collections and in the clothing retail business at large can be examined from the dimension of cost reduction using technology, high efficiency of the business in terms of service delivery, quality products, superior customer service and client management. The study recommends that there is need to channel more resources towards the utilization of technology and that the clothing apparel stores should continue utilizing creative online marketing strategies to engage consumers directly and more personally with the clothing brands. Jade Collections should also keep abreast of new developments on the technological front to maintain a competitive advantage in the sector.

Keywords: Predictive Data Analysis, Technology, Competitive advantage, Clothing Apparel Stores