Strengths and weaknesses are considered internal factors, over which a retailer has more control. Opportunities and threats are external factors, which are positive and negative situations that retailers continuously face. Additionally, the company may offer unique products compared to other retailers. For example, a clothing store may sell high-quality but slightly defective clothing at a low price.
A SWOT analysis for retail is a detailed look at the retailer's strengths, weaknesses, opportunities and threats versus key competitors in the marketplace. Strengths and weaknesses are considered internal factors, over which a retailer has more control.
Opportunities and threats are external factors, which are positive and negative situations that retailers continuously face. One possible strength may be the retailer's financial backing if it has plenty of capital and access to bank loans.
Another strength may be the retailer's cheaper wholesale prices. Additionally, the company may offer unique products compared to other retailers. For example, a clothing store may sell high-quality but slightly defective clothing at a low price.
Whatever the case, a retailer should make a list of all its strengths versus key competitors. Through market research, the retailer can check if it has a weak brand image versus key competitors or lack of identity in the marketplace.
For instance, the store may sell both cheap and expensive brands, so it lacks a defined place in the minds of consumers. Essentially, the store selling to all market segments may mean it has no competitive advantage that sets it apart from other retailers. Opportunities can include unfilled consumer needs.
For example, a small web design company may see an opportunity to add consulting services, if it identifies customers who desire it when conducting marketing research.
Or a retail company may identify an opportunity to purchase a smaller retailer to increase market share through a SWOT analysis.
Threats can include a decrease in consumer demand, a recession, price wars among key competitors or even an increase in competition. Even a change in shopping habits can be a major threat to a retailer. For example, when people started migrating to the suburbs in the s and s, downtown retailers, which represented the traditional way of shopping, were affected.
These days, the growing popularity of online shopping represents an ongoing threat to bricks-and-mortar retailers. Analyze SWOT for Better Decision-making Retailers should not just identify their strengths, weakness, opportunities and threats; they must also use this analysis to develop effective marketing strategies.
This can be accomplished by matching an internal variable, like strengths, to an external variable, like opportunities. For example, the owner of a chain of gift shops may have a tech-savvy marketing team -- a strength -- so she may see the opportunity to increase sales and profits through social media campaigns over the Internet that the marketing team can spearhead.Policy related issues - lack of industry status for retail.
- numerous licence,permits and registration requirement. -farmer and retailer unfriendly APMC act. Limited consumer insight -lack of detailed region specific customer data.
-less data on spending pattern.
inadequate human resources -lack of trained personnel at all level. -stringent 4/4(6). The Analysis of U.S Retail Industry Development Words | 20 Pages.
The analysis of U.S retail industry development What is the retail industry Retail is the sale of goods and services from individuals or businesses to the end user. In US too, retail has seen consistent growth and grew 2% over in retail sales in US equalled $ trillion. A major part of the retail transformation is taking place online.
E retail grew by a whopping 23% in and in the coming years too a lot is expected to happen online. This Walmart SWOT analysis reveals how the largest company in the world uses its competitive advantages to dominate and successfully grow in the retail industry.
It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. The SWOT Analysis is one of several strategic planning tools that are utilized by businesses and other organizations to ensure that there is a clear objective defined for the project or venture, in order to accomplish this task, the process of SWOT involves four areas of consideration: strengths, weaknesses, opportunities, and threats (Deakin.
How to Do a Retail SWOT Analysis. Retail companies, like other businesses, often use a SWOT (strengths, weaknesses, opportunities and threats) analysis as it provides information regarding the state of their business.