The Mr. Price group is one of the most prestige corporations in South Africa and has achieved what most business owners dream about. Starting off at humble beginnings, Laurie Chiappini and Stewart Cohen worked hard to get to where they are today.
This document analyses the different business sectors using the SWOT, Porters five force model and PESTLE analysis to identify the challenges the business might face in each of these sectors. The Mr. Price Group Limited division that’s the main focus on this task is the Mr. Price apparel division which has taken advantage of all its opportunities and expanded the bran to its fullest from launching an online store and opening new branches in Australia and becoming the first international online store
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Strengths
Mr. Price (clothing) is well known and established, which explains why they make up for more than half of the total sales of the Mr. Price group. Mr. Price is also on track with international trends and also caters for local trends; they also keep in touch with their customers online by having active social media platforms such as Instagram, Facebook, Twitter as well as their blog. Mr. Price offers affordable fashion with different fashion lines and has strong advertising; their advertising style youthful and fun, which attracts the young demographic who are the make up most of the Mr. Price customers.
Weaknesses
Some of the weaknesses of this division include poor quality of materials; which results in the customers losing trust in the brand and also sets low expectations for the brand which is usually associated with being cheap and cluttered. Another problem that is related to the reputation of the business is the size problems, these problems mostly occur because their clothes are imported from China. Customer assistance is also a weak point for Mr.
Macy Inc. (M) has a cost structure that can best be viewed using SWOT analysis, which is a way of evaluating the strengths, weaknesses, opportunities, and threats to the corporation. Macy’s strengths include customer loyalty, a recognizable store name, use of technology, a substantial supply chain, its comprehensive size, and the locations of its stores. In total, these strengths enable Macy Inc. to provide a unique service that offers a characteristic their competitors do not have: merchandise tailored to the customer by store and climate zone. Macy’s main weakness is its cost structure: costs are high compared to their competitors due to a complete operational transformation that includes localizing merchandise by
This case analysis will be focused on the company QVC (Quality, Value, and Convenience). We will perform an analysis review, which, will provide a comprehensive insight into the company’s historical and current business structures, strategies and efficiencies in their operations. It will include a detailed SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats) (Humphrey) and the primary activities of the Value Chain Analysis (Porter), to provide greater insight into the firms’ competitive advantage. These key concepts will be used to analyze QVC’s business model, define potential challenges and initiate a plan of execution. We will then recommend solutions
The retail industry is a highly competitive and mature. For this reason, above-average returns can only be obtained by competitive actions and responses against competitors. Porter five forces model will be used to analysis the development and competition situation in retail industry.
The main issue the company faced is quality control issue impacting brand image. There is narrow focus in both consumer segments and product line. There is also limited brand recognition and limited geographic market such as America. The quality of yoga pants were not good because customer companied about sheer Luon Yoga Pants and the fabric is so see through.
The company 's weaknesses are that management comes and goes fast. One day their in and the next their out. Not having stability might affect the company 's performance in the long run. Steady management and ideas are crucial in business. Another weakness is that their latest styles can not be purchased online because of the exclusivity of the brand. This fact along with the threat of overseas manufacturing may hurt BCBGMAXAZRIA in the long run. A recent California economic study showed that apparel jobs might be dwindling. More manufacturers are using oversea factories to gain profits for their companies, rather than developing garments in the United States. Because of this change, many jobs in the apparel industry will be lost and the recession of the economy will increase. This in turn, will decrease spending among Americans in proceeding years that have less money to spend on desired items. Also, seeing that this forecast
Price is an important factor in Burberry as price affects the value that costumers perceive they get from buying a product (Jobber & Ellis-Chadwick, 2012). Burberry uses competitive pricing similar to its competitors which produces a psychological effect on Burberry customers (Jacobson, n.d). If Burberry for example lowered its price dramatically then customers may believe the quality has decreased and may presume it’s not worthy to be named a luxury brand. However by being expensive it suggest better quality and desire to sustain its customers as well as making there products seem exclusive.
The company has not made sufficient efforts in the diversification of their products as well as their client base. Despite the nature of their business having the potential and capacity of diversification, no significant efforts have been shown towards achieving the same. This might cost the company a significant level of income and revenue.
pricing trend in women’s apparel, and what are the main factors that are leading to
In this report we will focus on Singapore’s Uniqlo companies by providing a PESTEL analysis and review of the Porter’s Five Forces analysis to gauge the company’s competitive environment. Lastly,
In this report, it consists of Pestle Analysis and Porter’s Five Forces. Pestle Analysis will be conducted to determine on whether it is an attractive environment for HollisterCo to step into the Singapore’s Industry. Porter’s Five Forces is used to zoom into the clothing retail industry to find out whether or not is attractive enough to set up HollisterCo.
Mr Price Group is considered to be of the fastest growing retailers in South Africa. The group conducts its retails sales through 937 outlets in South Africa and an additional 24 franchised stores throughout Africa. The group also employs over 17800 people and pledges a focus on employee well being as part of its corporate ethos (Fastmoving, 2016).
TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY3 2.0 INTRODUCTION3 2.1 Background to Organization3 3.0 ANALYSIS3 3.1 Porters 5 Forces (Model of Competition)3 3.2 PESTEL (External Analysis)5 3.3 SWOT6 4.0 KEY FINDINGS OF ANALYSIS/PROBLEM IDENTIFICATION/ KEY STRATEGIC CONCERNS6 4.1 Vertical Integration6 4.2 Diversification7 5.0 POSSIBLE SOLUTIONS & STRATEGIES.8 7.0 CONCLUSION9 8.0 APPENDICES11 Appendix 1: Porters 5 Forces11 Appendix 3: Luxury Goods Group & Brands Top Ten Competitors13 Appendix 4: Industry Map*.14 Appendix 5: Financial Performance14 Appendix 6: PESTLE Analysis15 Appendix 7: SWOT Analysis16 Appendix 8: Evaluating industry Attractiveness and Competitive strength19 Appendix 9: A Nine Cell Industry Attractiveness-Competitive Matrix20
To eliminate the threat of customers possibly opting for a product similar to what Mr Price offers, they need to monitor and differentiate their products to be in alignment to what the customers want. For examples, a consumer may feel it is better to buy thing from one of their competitors as they have similar products and items.
The Mr Price Group Limited is very successful. The divisions within the group are made successful by its stakeholders. In order to strategically plan for the future and grow, Mr Price needs to carefully analyse both the internal and external environments. In this process they can use problem identifying techniques such as SWOT analysis, Porter’s Five Forces and PESTLE analysis to gain better understanding and insight into the Micro, Market and Macro environment. By doing this Mr Price can identify new opportunities for growth and further develop into a well-known and successful brand. Once all issues have been identified Mr Price can put in place strategies in order to alleviate these issues and better the internal functioning
According to What is SWOT Anlysis (2011), SWOT analysis is an analysis used to identify the internal factors (strengths and weaknesses) of the company as well as external factors (opportunities and threats) of the company.