SWOT Analysis of Big Lots
Big Lots is a worldwide retail corporation. Founded later in the previous century, in 1967, this company stands out to be one of the ‘Fortune 500’. The company is headquartered in Colombo, Ohio, USA, but has more than 1415 retailing outlets in 47 different states. Originally formed to be a local retailing store, this company rose up to be an international player when it took over Liquidation World, another company of the same kind, with base in Canada. Overstock merchandise are the common retailing products for the company. The products may include anything from toys to furniture. The company’s last publically displayed profit in 2009 was calculated to be $4.6 Billion, while the work force numbered to 14113 workers, making it one of the largest company to operate in its sector.
Big Lots Strengths
The strongest point for the company is that the company is notably amongst the largest retailing corporations around the world and particularly in the United States. This recognition has earned it an image, and a lot of customers, in fact, loyal customers.
Another advantage for the company is its pricing strategy which attracts the people most. Since overstock merchandise constitutes the majority of the products, it is likely that they carry a discounted price tag. Predominantly working on the sales of such products benefits it the most.
Lastly, the company has a highly efficient and organized network for product distribution, which allows the trade to take place on an extraordinarily awesome pace.
Big Lots Weaknesses
Predominantly, the company sells overstocked product. This means that there is no continual supply or guarantee of the supply of the same products again and again. A product once bought, may not be found again in the market. Although this is not the company’s fault, this often pisses the customers off.
Big Lots Opportunities
Another opportunity is to grow online. It is predicted that within the time period of some years, the whole world will eventually depend on the internet for all their requirements. Its not yet too late. An online facility would elate the company’s status and satisfy customers, thereby allowing the company to operate two markets, one real and one virtual.
Big Lots Threats
The whole world is going into recession, and might wear off into a slump. This may badly affect the living standards and the pattern of spending of the people, indirectly affecting the company’s sales and trading problems may also arise.
The company holds a huge number of employees. The minimum wage for US workers is likely to increase. This may increase the operating costs of the company, thereby minimizing profits. Yet, the company has still got a scope to improve.