SWOT Analysis of J Crew
Following is the SWOT analysis of J Crew which is going to cover the strength weaknesses, opportunities and threats. The strengths and weaknesses are internal to the company whereas the opportunities and threats are externs. As a company J Crew can further increase their strengths, minimize weaknesses, exploit opportunities and overcome threats.
SWOT analysis is considered as a great tool for the companies who wants to review their current standing and formulate strategies accordingly.
• A number of labels introduced by J Crew such as Madewell have been hit in the consumer market since their start.
• The company has an extensive network of retail outlets exceeding 320 in number with more than thirteen thousand employees working to help the brand grow.
• J Crew makes use of multiple sales channels such as retail stores, online sales etc.
• J Crew has some highly famous brand loyalists such as the First Lady of the US.
• Each year a new catalog is issued by the company and more than 80 million copies are distributed showing the broad international presence of the brand (Five, 2012).
• Through its e-commerce website, J Crew ships to more than a100 destinations.
• J Crew has a limited presence in many parts of the world has yet to tap many attractive markets. There are no stores in many countries where other competitors have entered successfully (Thang, 2016).
• As the majority of the stores of J Crew are in the USA, currency fluctuations can raise the costs of shipping to other destinations.
• The general perception of J Crew in the market is that it is an expensive brand.
• Do not own any manufacturing facilities and rely solely on suppliers for their products. They do not have any long-term contracts with these suppliers as well.
• The baby clothing line of J Crew failed drastically causing financial losses to the company.
• J Crew has a limited presence in the international market. It can expand and enter into new international markets such as Europe and Asia. Even in Canada, it has a lot of opportunities to grow.
• It’s jewelry line is famous. It can expand this line to include special collections.
• It can begin the manufacturing of its own products and decrease the reliance on the suppliers for supplying the goods to be sold.
• J Crew is adding handbag salons and deluxe shoes into its existing stores to attract a broader range of customers.
• J Crew is working on opening specialty shops for kids, women, and men hoping to attract more business.
• Fashion trends are rapidly evolving.
• The rising costs of production leading to increased selling cost by the suppliers of J Crew can lower the profits of the company.
• There has been a decrease in the spending of the consumers because the products of J Crew are in the category of discretionary purchases.
• As J Crew purchases mostly from foreign nations such as China, the fluctuations in the export policies of those nations can impact the foreign currency value of the country being purchased from.
• If the independent suppliers for J Crew make use of unethical business practices, it can impact the company.
Five, T., 2012. https://prezi.com/-bx8sepigq9a/jcrew/. [Online] Available at: https://prezi.com/-bx8sepigq9a/jcrew/ [Accessed 28 July 2017].
Thang, T., 2016. J Crew in 2014: Will it turn around Strategy improve Its Competitiveness? [Online] Available at: https://www.slideshare.net/TranThang6/j-crew-in-2014-will-it-turn-around-strategy-improve-its-competitiveness [Accessed 28 July 2017].