SWOT analysis is a strategic planning tool used in evaluating an organization’s strengths, weaknesses, opportunities and threats (SWOT). To effectively carry out a SWOT analysis, the specific objectives of the business must be identified as well as both the external and internal factors which are unfavorable or favorable for the accomplishment of the organization’s objectives. This paper is concerned with carrying out the SWOT analysis of La Maison de Qualit's Department Store.
La Maison de Qualit's Department Store
Located in one the metropolitan area in Marseille, France, the store is managed and owned by Pierre Fournier. It specializes in men, women, cologne, furniture, cosmetics, children, linen and house wares.
Strengths
La Maison de Qualit's Department Store has an excellent reputation gained from its highly trained sales force. Besides, the company has exceptional high quality unique products which are sold and sourced in the store. These give the company a better competitive advantage in the market. Similarly, the company has the ability to effectively carry out market research through research and developmet. This helps in offering unique services and products to the diverse customer preferences. In addition, the company has a well outlined structure. Every department specializes in a given activity aimed at promoting the quality of service and products. In particular, the company has a buying department whose job is to specifically establish unique high quality merchandise across the company’s specialty departments. Additionally, the company has an exceptional quality service. Its sales staff has expert knowledge and attention to detail that enable it offer high quality service to its customers. The company has an EPOS system that speeds up sales process and this has developed better customer relationship because sales staff has time to converse with customers.
Weaknesses
The company is using old fashioned technology. It does not use e-business strategy neither does it have a website. This localizes its operation in France. The company’s accounting department performs its functions inefficiently. Majority of their work is paperwork. This makes the accounting processes long and complicated hence inefficiency. The company lacks the personnel management department and customer relationship management department. This is likely to make the company fail in managing effectively its workforce and in building stronger customer relationship respectively. The company to fully also failed to position itself in neighboring international markets.
Opportunities
La Maison de Qualit's Department Store has the opportunity of increasing its market share. It has the potential of increasing the size of its market to other European countries. Similarly, the company has the opportunity of increasing brand awareness through the use of integrated marketing communication techniques. Based on its exceptional customer service, the company can effectively integrate e-marketing and technology in serving its customers. Similarly, the company has the opportunity of securing outstanding computerized accounting software that it can use to make efficient the operations of the accounting department. Lastly, there is potentiality of enjoying a well established position in the market place simply with a superb defined market niche.
Threats
The major threats are economic concerns and the numerous primary competitors. Recently, there was an economic downturn in France. This negatively impacted the profitably of the company as the rate of consumer spending drastically dropped. The numerous primary competitors as well pose as a major threat to La Maison de Qualit's Department Store because they reduce the company’s total market share.
Haberberg, A. and Rieple, A., 2001, The Strategic Management of Organizations, Essex: Pearson Education Limited.
Porter, M., 1998, Competitive Strategy: Techniques for Analyzing Industries and Competitors, New York. Free Press.
