Swot analysis of foot locker
Business Strategy Review, 14 2 It has a number of unique product offerings that are not provided by competitors.
Foot locker swot analysis 2019
Butterworth-Heinemann: Oxford. The matrix is not an end as it does not show how to achieve the objectives. Financial Position: Foot Locker has a strong financial position with consecutive profits in the past 5 years, along with accumulated profit reserves that can be used to finance future capital expenditures. This is one of the major limitations of SWOT analysis. Rauch, P. W3, O3 Threats There is a threat of new entrants coming into the market. Foot Locker has qualified and accredited professionals working under in its team. This will reduce the costs incurred on inputs for production. It has been successful in past, in most of the initiatives it has taken in new markets. This means that if Foot Locker is able to hire skilled labor, it would have to spend less on training and development, therefore, saving costs. The concept of corporate strategy, 2nd edition. Trade barriers have been reduced on the import of goods.
Investment in Research and Development is below the fastest growing players in the industry. In the next few years the company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics.
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Intense competition — Stable profitability has increased the number of players in the industry over last two years which has put downward pressure on not only profitability but also on overall sales. Skilled workers: increase in education and training by numerous institutes has increased the amount of skilled labor available within the country. Foot Locker has a well-established IT system that ensures efficiency in its internal and external operations. Core capabilities and core rigidities: A paradox in managing new product development. It also faces cash flow problems. There are certain interrelationships between the internal and external factors that the SWOT Matrix overlooks. This means that the costs of inputs could increase for Foot Locker. This investment has opened new sales channel for Foot Locker. The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in. It provided an evaluation window but not an implementation plan based on strategic competitiveness of Foot Locker, Inc. New technologies developed by the competitor or market disruptor could be a serious threat to the industry in medium to long term future. High Levels of Competition: Little of the inventory sold at Foot Locker locations is exclusively offered by the company.
In this article, we will address these issues by taking a brief look at Foot Locker's business by performing an easy-to-follow SWOT analysis of the company, evaluating its Strengths, Weaknesses, Opportunities, and Threats. Strategic Management Journal, 13 S1 Highly skilled workforce through successful training and learning programs.
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Financial planning is not done properly and efficiently. Foot Locker owns a number of intellectual property rights that include trademarks and patents. W3, O3 Threats There is a threat of new entrants coming into the market. Automation: of various stages of production has allowed the more efficient use of resources and reducing costs. It also faces cash flow problems. Its products have maintained quality over the years and are still valued by customers, who find it as good value for the amount of money that they pay. This reliance on a few products makes Foot Locker vulnerable to external threats if these few products suffer for any reason. And for a company that consists of over forty thousand employees, many of whom are paid the minimum wage, it can represent a very serious problem. The matrix is only a starting point for a discussion on how proposed strategies could be implemented. To combat the aforementioned losses to poor foot traffic, the company has instituted a direct-to-customer e-commerce platform. Opportunities of Foot Locker Internet: there has been an increase in the number of internet users all over the world. This investment has opened new sales channel for Foot Locker, Inc.. The three social media platforms; Facebook, Twitter and Instagram, have shown the greatest number of increase in monthly active users. Business Strategy Review, 14 2 , SWOT is a static assessment - analysis of status quo with few prospective changes.
This means that a lot of people are now making purchases online. It has a strong financial position with positive profits reported in the past few years. The demand of the highly profitable products is seasonal in nature and any unlikely event during the peak season may impact the profitability of the company in short to medium term.
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