Aaron’s Inc. SWOT Analysis
Aaron’s is a public owned company with its limited services to North America. The company was initially started in 1955 by John M. Glenn. The company headquarters are in Atlanta GA, U.S.A. The main focus of the company is to furniture, electronic appliances, retail sales and leases related to computer.
• Product line offered by the company is too diverse.
• The company is operating in 1814 stores locations including Owned Sales and lease ownership stores, Rimco stores, Franchised Salo stores and Aaron;s office furniture. Among the stores being operated 1,150 are company owned stores and 664 franchised stores.
• The company itself is a manufacturer as well as a retailer because the company is operating in three major breakups including sales and lease ownership, manufacturing and corporate furnishing.
• The business model of the company is non credential in fact it operates on the business course of action of ‘rent to own’.
• The market is fully occupied by the company as it entraps both the up and down market.
• Aaron’s offers its sponsorships for NASCAR racing; Aaron’s cycling team and the pre seasonal documentaries.
• Employees operating the company are round about 1000 in number.
• Total assets of the company are worth $1.13 billion with 11 manufacturing plants of Aaron’s Inc. that are operational in United States known by the name of ‘MacTavish Furniture Industries’.
• The revenues had a positive increase to about 7 % as compared to the previous fiscal year and reached up to $1.877 billion as compared to that of $1.753 billion.
• Their net income is totally dependent upon the profits of new stores as there is a mall management in case of maintaining equality between the historic and new stores.
• The company has been involved in either shrinking or winding up its working areas like that in the case of selling furniture division.
• Furniture rentals are not generating the expected revenue and needs to be revised according to the quality provided.
• The information technology and e marketing is not well established as that of its competitors.
• Corporate Furnishings division sold to CORT Business Services to sum up the revenue generated by this selling to be employed on ‘Sales and Ownership division’.
• The acquisitions made by the company including Lamps Forever, Ball Stalker, Metro lease, Modern Furniture and MacTavish Furniture Industries have moved the company a hade of time.
• Franchises are offered for promoting the brand name.
• The customers visiting the company increased tremendously to about 912,000 with almost 502,000 customers that visited at franchises. The customers that visited the franchise are accounted to increase by 10% each year.
• Uncertain economic conditions and decrease in the dollar rate can considerably affect the company progress.
• Political conditions and pressures of the country poses imbalance in company’s economic stability.
• Market competition with in all the parameters in which the company is working including rentals, leasing and furnishing.
• Plunkett, Jack W. (December 2007). Plunkett’s Retail Industry Almanac 2008. ISBN 1-59392-101-2.
• PRNewswire-First Call (April 14, 2009). “Aaron Rents, Inc. Changes Name to Aaron’s, Inc.”Retrieved from http://money.cnn.com/news/newsfeeds/articles/prnewswire/200904140800PR_NEWS_USPR_____CLTU001.htm.
• “Aaron Rents, Inc. Sells Aaron’s Corporate Furnishings Division to CORT Business Services”. (September 15, 2008). Reuters.
Receive Free SWOT Analysis of Companies and Corporation on your Email.....