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SWOT Analysis of Boohoo.com Case Solution
Boohoo.comBoohoo.com is a fashion retailer that follows an e-business model. Boohoo.com was founded in 2006, and has expanded exponentially since. Boohoo.com has more than 35,000 products that have been specialized by the company itself. Boohoo.com reported sales pf almost £600m in 2018. The fashion retailer targets people aged between 16-30 years old. The SWOT analysis may be used by business managers at Boohoo.com for better strategic direction and decision making. With an innovative business model, and a keen eye for fashion, as well as connectivity with consumers, Boohoo.com has become one of the leading players in the fashion retail industry.
Boohoo.com SWOT analysis/ SWOT matrixThe strategic position held and maintained by Boohoo.com has resulted largely from its critical and continuous assessment of the SWOT analysis factors. The analysis of SWOT factors have allowed the company to conduct practical situational analysis, and develop real-time, strategic direction to help Boohoo.com move forward with confidence.
The SWOT process is critically complicated and often required interaction and interdependence between the various departments of the company. The SWOT analysis is well coordinated, and takes into account the entire company and its various business aspects to suggest effective decisions. These are suggested through the SWOT analysis matrix. The SWOT analysis often results in the SWOT analysis matrix- which is a presentation of the interaction of the internal and the external strategic factors affecting the decision making process of the company. These factors are also derived from the SWOT analysis – external strategic forces are assessed through threats and opportunities; and internal strategic forces are assessed through strengths and weaknesses. Boohoo.com can use these factors to help managers make more accurate decisions.
The usage of the SWOT analysis leads to the SWOT matrix, which will help the business managers of Boohoo.com to develop different strategies based on the situation – such as:
- Strength-opportunity (SO) strategy
- Weakness-opportunity (WO) strategy
- Strength-threat (ST) strategy
- Weakness threat (WT) strategy
SWOT analysis of Boohoo.com – a simple and easy outline to understanding the SWOT position and SWOT analysis of Boohoo.com
SWOT analysis – strengths of Boohoo.comOne of the foremost purposes of the SWOT analysis is to help the company protect and build on its strengths. As one of the leading companies in the industry, Boohoo.com also has numerous strengths, which are analyzed through the SWOT analysis below:
Broad product portfolioBoohoo.com has a broad product portfolio which helps the business cater to the demands of the varying segments and age groups of the customers. As per the SWOT analsysis, this is its greatest strength. Boohoo.com also maintains a competitive edge through this broad portfolio of products over its competition as it allows a one-stop shop for all needs and fashion demands. Boohoo.com has a diversified geographic presence. This has helped the company in expanding to different regions and cultures successfully. The successful expansion has also allowed the Boohoo.com to build an international identity and recognition, and create a loyal customer base globally.
Highly innovativeAccording to the SWOT analysis, Boohoo.com also finds its strengths in innovation. The continuous innovation by the group and the business has allowed Boohoo.com to maintain a leadership position in the industry, and develop market leader products to sustain the competitive and leadership advantage.Boohoo.com has been globally recognized for its keen focus on fashion, attention to business values and ethics, and care for customer satisfaction. The company ensures to follow sustainable practices in all its operations internationally.
Strong distribution networkBoohoo.com also has a strong dealer and distributor network. On basis of the SWOT analysis, this is important because of various international and different regional operations. The strong dealer-distributor network has allowed Boohoo.com to respond immediately to customer needs, and ensure smooth deliveries all over the globe
Focus maintained on customer satisfactionThe company maintains strong focus on its customers, nd this is not only its strength, but also its identity and brand promise according to the SWOT analysis. Customer satisfaction is top priority at Boohoo.com, which has allowed it to model its business and operations accordingly. Focus on customer satisfaction leads to customer loyalty, and high customer value throughout the lifetime.
SWOT analysis – weaknesses of Boohoo.comThe SWOT analysis also helps the company identify its weaknesses so that it is able to improve them, or remove them completely from the business model to be able to make more strategically viable decisions. The SWOT analysis for Boohoo.com has also identified weaknesses in the business which are:
Diminishing liquidity positionBoohoo.com is experiencing a decreased liquidity position, which is resulting in a difficulty for the company to be able to smoothly carry out routine task and operations. In addition, the sWOT analysis also suggests that the limited liquidity of the company has also restricted Boohoo.com’s ability to expand further, or make profitable long term investments in the business model.
Restricted focus on investment researchThough Boohoo.com has a high focus on fashion and creative building, there is little to no focus on research in investments and development. Boohoo.com has negligible resources dedicated to the building of investment plans, and building financial cushions for future investments and expansions in a planned, and a structured manner.
Limited advanced technologyThe company is restricted in its access to advanced and new technology. Based on the SWOT analysis, this is a weakness since with rapidly increasing and changing business needs, and environment, businesses are investing in advanced technology to safeguard their competitive positioning. However, lack of technological investment by Boohoo.com can be a weakness as it will allow competition to fill the gaps and the loopholes left by Boohoo.com. Moreover, lack of advanced technology also hinders proficiency, efficiency and effectiveness – thereby adding to costs of doing business for Boohoo.com......
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