The SWOT analysis (abbreviation for Strengths, Weaknesses, Opportunities and Threats) is an essential tool in marketing for understanding and supporting decision-making in all kinds of situations in business and organisations. In brief, it provides an accurate context for studying strategies, positions and directions of a company proposition. It is used mainly for business planning, competitor evaluation, marketing, business and product development and research reports. SWOT analysis is also a widely recognised method for gathering, structuring, presenting and reviewing extensive planning data within a larger business or project planning process. (Chapman, 2014)
The SWOT analysis conducted ...view middle of the document...
As my primary research suggested in the previous assignment, people tend to buy more shoes that remotes a traditional style than the colourful ones.
The weaknesses of a product or company refers to characteristics that sets it at a disadvantage position over its competitors. The weaknesses segment will help to pinpoint areas that the company can improve. Likewise the strengths, it is a factor that happens internally and currently.
• Price – The prices of Timberland products are considerably expensive when compared to direct competitors such as UGG and Clarks, and even more expensive than the average footwear retailers;
• Location – Timberland does not have as many official stores as Dr Martens, for instance, does. Having official stores changes the way that customers reach the products, as it is easier to find for them to find what they are looking for;
• Social media activity and advertisement – Timberland LLC does not update or interact with its customers through social media as much as its competitors does. Also, the company has its advertisement campaign mainly focused on American customers rather than British.
Opportunities are a very important segment of SWOT analysis, as it is likely to happen in any company. It enables the company to identify opportunities for improvements both internally and externally, whereas the opportunities might be happening currently or in the future.
• Merge with a new company – Timberland could increase its awareness and boost its sales if, for example, merge with an airline company, therefore offering discounts in its products whenever customers buy tickets to cold countries. For example, the customer buys a ticket to Russia with British Airways and instantly gets 15% in a range of shoes;
• Duty free stores in selected...