SWOT Analysis of Polo Ralph Lauren

One of the leading companies in the Industry of fashion designing, Ralph Lauren Corporation is located in New York City, United States. It was found in 1967 by Ralph Lauren, a well known American designer. Although the company’s core source of revenue is generated from the sales of its high-end and lavishly designed clothing, the Ralph Corporation also deals in manufacture of perfumes, footwear and home materials, like bed sheets, etc. Besides this, it also runs other brand under the common flagship, Polo Ralph Lauren, including a chain of restaurants. The annual revenue for the year 2010 was $4.979 Billion. With revenues so high and a workforce of around 19000 workers, the Ralph Corporation is renowned to be amongst the fiercest competitors among the industry SWOT analysis of the company is given in the upcoming paragraphs.


The world of Lauren is a showcase for all the Ralph Lauren products. Multiple varieties of goods combined under a single name gives Ralph Lauren Corporation an additional benefit, as people believe it to be a perfectly comprehensive and enriched market. 

Strength of the Lauren Corporation is that it is not just a national or continental competition; it is a global player in the world of fashion designing and accessories. Thereby, its sales and trade are not just confined to one place, and it remains non-competed at many places.

It has a highly efficient and excellently managed network of distribution and retailing source, which are its single biggest source of income generation. Thereby the sales are not just managed through the company outlets. Additionally, the company’s online store also constitutes a great part of income and has successfully managed to increase customer satisfaction.

The financial reports show the upward trend in revenues and profits. It has strong the employee base among the direct competitors which further strength its position in the industry.


The fluctuating exchange rates might cause the over sea trade to suffer a loss. For instance, in 2008, The Ralph Lauren Corporation had to suffer a loss of $6.4 million because of external depreciation in currency.

The company has a network of so many head offices, sub offices, factory outlets and retail stores all around the world that it costs a huge amount of money. The major weakness of Ralph Lauren Corporation  that is highly depend on outlets sales and manufacturing.


With pre-established network of retailing and departmental stores, it would be very easy and convenient for Ralph Lauren Corporation for bringing in a new line of product, or products.

Most of the work pattern is now shifting online. An internet network built today can serve as a major, or perhaps the prime source of income generation for future.

The company can also merge with or take over the departmental store chains, as American Living brand Polo has accomplished with JCP. Such mergers might mean diversification, increased control of the market share and increased revenue, plus increased profits for re investment.


With unstable conditions of many economies, the future security is thwarted and threatened. Uncertain conditions might force the businesses to close down, never to reinvigorate again. It is also becoming difficult to thrive in the competitive oceans. Also, competitors like Hugo Boss, Calvin Klein, Armani, DKNY and Ralph Lauren Corporation are sort of, waging a war against each other. The cut throat competition might lead any of the business in to slump. The company might have to bring a change in the trend, in order to avoid such situation.



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