Executive summary
Founded in 1918, New York and company Rebuilt is a specialty company that focusses on women’s fashion accessories and apparel. This company provides women with modernized wear. Moreover, it finds solutions which are multifunctional and at affordable prices. New York and company Rebuilt went public in the year 2004. Its headquarters are in New York City. All of its products are proprietary branded. They are exclusively sold through the company’s national network of over 500 New York and company Rebuilt outlet stores, retail stores and e-commerce portal. The main vision of the company is focus on results and knowing customer’s needs. Their products are of high quality and are affordable to most people. Nearly all fashion demands for women get catered for in this company. From trendy clothing, handbags, shoes and ornamentals. This paper therefore makes a SWOT analysis and proposes various strategies to move the company to greater heights. It gives recommendations that enable the maximization of profits.
SWOT Analysis
A SWOT analysis forms a valuable tool for any business organization. It aids the management in understanding the various kinds of business situations. The operating environment of any organization is usually bound to change with time. Some of these changes are unpredictable. According to Hill and Westbrook (48), a SWOT analysis would, therefore, help in such instances to make proper decisions aimed at driving the company to profitability. SWOT stands for strengths, weaknesses, opportunities and threats. Strengths refer to those features of a business that enable it to gain an advantage over other firms. Such attributes might include a significant market share, massive capital investment, quality of products, superior customer service and efficiency of the workforce.
New York & company Rebuilt strengths
Specialization- this company has fully specialized in the manufacture and sale of women’s apparel and accessories. Specializing in a particular niche enables a business to concentrate all efforts in an area of strength. This process allows this company to produce high-quality products that are superior to its competition.
Market share- New York and company Rebuilt has a colossal customer base. It has clients all over the country. Furthermore, some of its consumers reside in Canada and Mexico. A large customer base means that there is high demand for the company’s product. This factor brings profitability to the firm.
Market experience- this company got established in the year 1918. Having been in the business for close to a century, it has gained adequate experience on how fashion trends change over time. It is therefore in a good position to predict future trends that might arise. This factor keeps the firm ahead of its competitors. Equipped with the experience of both good and bad times, the company can quickly and efficiently respond to changes in the market.
Public company- New York and company Rebuilt went public in 2004. Its IPO enabled it to raise substantial capital to expand. Also being a publicly traded company, it can raise the capital required for research, development and the funding of capital expenditure.
Originality- New York and company Rebuilt products are branded with the company’s trademark. In addition to the high quality of goods, branding creates a sense of authenticity in the product.
Distribution network- this company has over 500 retail and outlet stores. Its e-commerce portal enables customers to access its online catalog and make orders from wherever they are within the country.
Offers- New York and company Rebuilt offers very attractive offers and discounts. These factors aid in attracting more customers to the company’s products.
Weaknesses
Limited shipping- For customers based outside the United States, the company only ships to Canada and Mexico. This situation means that the clients in other foreign countries cannot access the business's products
Large corporation size- New York and company Rebuilt is a big firm. This factor means that it at times experiences difficulty in controlling standards and quality. There are many logistics it has to deal with.
Low cost vs. high quality- The Company does not seem to have struck a balance between these two factors. The increasing competition calls for the need to lower cost. However, lowering the cost might mean reducing the quality.
Investor disclosure- because the firm is a publicly traded company. It has to share more of its details with investors. Such might include profit margins and financial status. Such information needs to get maintained as private records.
Increased regulation- All companies listed on the stock exchange must abide by the securities exchange act of 1934. Compliance costs might get very high leading to a reduction in profitability.
Market pressure- pressure from the market conditions might cause the company to focus more on short-term results rather than long-term growth. Such a situation can stunt the growth of the company. The quality of products might reduce because the focus gets placed on quick-fix products for the short term.
Opportunities
International expansion- This Company only serves two other businesses apart from the United States. They are Canada and Mexico. However, there is more room to expand further into other countries. The European market is ripe with customers who have better purchasing power to buy high-quality products.
Managerial skill- being a publicly traded company means that New York and company Rebuilt has a big capital base. This position enables them to attract the top administrative talents to the enterprise. Many propel like to get associated with success. Therefore, quality leaders would prefer to work for the company.
Unique products- because the company can attract skilled managers and personnel, they can come up with innovative ideas. A creative staff will come up with great products that serve emerging interests of the consumer base.
Employee Motivation- the Company can use its financial dominance to provide its employees with better payment and work conditions. These factors will motivate them to put extra effort and deliver more products of high quality. The company's margins would therefore rise.
Automation of tasks- advances in robotics technologies and artificial intelligence provide an opportunity to automate the various automation and data garht4ering tasks. Machines can work 24 hours a day.
Threats
Cheap counterfeits- China is very notorious for the production of low-quality imitations. These goods have the potential to lower profit margins of the company. They can also tarnish the brand's reputation.
Completion- many clothing companies within New York specialize in women’s apparel. They include Necessary clothing, Lane & Bryant and Fashion to figure. The latter two deal with clothing for plus size women. All these fights for the market share. Other bigger, internationally renowned players include Dolce and Gabanna, Giorgio Armani, and Calvin Klein. These companies resonate globally and are also very aggressive within the American market.
Economic Limbo in America- currently, there is a lot of job uncertainty within America. Most companies are adopting automation as a means of cutting costs. This means that very many people are bound to get unemployed. This factor will reduce the purchasing power of most customers, leading to reduced demand. A reduction in demand will adversely affect the profit margin of the firm.
Marketing goals and objectives
For a business to perform in an exemplary manner, it has to put in place sound marketing goals. These goals must be realistic, timely and precise (Hill and Westbrook 49). Marketing objectives act as guidelines that aim to steer the business towards profit maximization. The following objectives can provide a proper roadmap towards success and sustainability.
Understanding consumer segmentation
Consumer segmentation is the process whereby the customer base gets divided into individual groups. These groups are typically similar in some ways relevant to marketing.
The most common group subdivisions are gender, age, interests and spending habits.
Gender- in gender divisions, a company must analyze the interests of both sexes. They must clearly understand which products resonate with people of different genders. Therefore, this categorization makes it easier to determine the tastes of the different genders. During market research, proper research methodologies that target specific genders can get developed. They will gather the precise information on the general preferences of the different sexes. It is a known fact that men and women think differently. This difference in thought patterns makes them view life defiantly and as such they make different decisions.
Age-Segmentation can also get done by age. The likes and interests of young children are different from those of teenagers. The teenagers also differ from those of young adults. Adult preferences differ from those of the elderly. Market segmentation by age, therefore, gets helpful in determining the manufacture of age-specific products. A manufacturer needs to ask himself what young children like and don’t like. He or she also needs to determine the likes and dislikes of the rest of the demographic. After this determination, manufacturers need to design and manufacture products aimed at specific sections of the demographics. This method proves to be much better than adopting a one size fits all style of production.
Interests- Everybody is unique. Therefore, we all cannot like and dislike the same things. In fact, what someone dislikes might turn out to become what another person likes. In market segmentation, it is, therefore, imperative that the manufacturer divides the market based on preference. Once thorough market research gets done, it is much easier to design products targeted at different people with different interests. This becomes a form of product customization. When users get products that satisfy their needs, they become more loyal to the product and the brand in general.
Spending habits- just as tastes and preferences differ from person to person, spending habits change too. Some people do not mind spending all of their money in a short period. Other people, on the other hand, are very6 conservative with their finances. Products, therefore, need to get customizes to meet the different spending habits of individuals. People who do not prefer to spend much need products that will last them for a longer period. They prefer durable goods as a method of saving for the long term. Spenders, however, prefer to have the latest items and gadgets. Therefore, these individuals regularly need newer products after short timeframes. A company must respond to all these needs to ensure maximum customer satisfaction.
Marketing Tactics
The following are the marketing tactics I would use to increase the profitability of the company.
Creating an action program- In the modern world technology is a great marketing tool. The internet has enabled instantaneous communication and data transfer. For this reason, I would employ artificial intelligence in marketing activities. Through the online portal, consumer buying habits can get monitored. This process leads to a phenomenon called data-driven marketing. It highly involves the use of creative automation. Computers can collect data more accurately that human beings. They will give the accurate feedback on user habits. This will enable the company to make sound marketing decisions.
Behavior-driven messaging- This tactic will involve personalized communication. Instead of sending general adverts to all customers, communication gets undertaken in a manner that it addresses the unique need of the individual. Nowadays consumers do not just respond to customized services; they expect it. One strategy I would employ is to segment the audience into the smallest possible groups. After doing this, I will deliver one-on-one messages based on the interest of the consumer. I will also automate systems for the delivery of rapid responses to customer queries. Smarter website tools will enhance site personalization. Finally, I would utilize proper means of advertising without irritating the consumer with pop-up ads on the internet. I will use ways that captivate, inspire and motivate consumers in my adverts.
Sustainability
Environment impacts- during production of goods and services, waste products get generated. Such might include, waste water, plastic, and some fabric. It is, therefore, paramount to ensure that all production processes meet the stipulated environmental cleanliness conditions. A safe and healthy environment is important for all living creatures. Pollution has adverse effects on the health of humans and animals.
Social responsibility is essential for proper coexistence between the business and the community. The company needs to set up programs that aim at addressing the concerns of the local community. I will ensure that all individuals affected by the manufacturing activities of the company get compensation.
I would reduce costs by sourcing quality materials from cheap and reliable sources. I would employ more automation and reduce the workforce to a reasonable amount. A workforce that is too large leads to most of the capital getting spent on fixed recurrent expenditure which might not prove sustainable over the long term. Another aim would be to reduce energy consumption and save on the costs. This action will entail the use of efficient machinery inclusion of alternative sources of green energy.
Budget and control
The success or failure of a company largely depends on how well the budget gets drafted. This activity should get undertaken in a manner that ensures the firm does not get bogged down by day to day budgets. Such situations lead to diversion of focus on matters that are not that important to profit maximization.
One methodology to utilize is to prepare a proper business plan. These plans must cater for sales products and promotions. It is also important to periodically review the business plans to enhance their effectiveness. The financial situation and performance of the company need frequent monitoring. This step will enable the company to improve continuously and anticipate problems. As such its operations can always continue smoothly without much disruption in trying times. Monitoring the budget also allows the company to gain proper financial information on which to base decisions. This process will eventually lead to greater confidence in decision making.
Works Cited
Hill, Terry, and Roy Westbrook. "SWOT analysis: it's time for a product recall." Long range planning 30.1 (1997): 46-52.
