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.

Strengths

• 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.

Weaknesses

• 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.

Opportunities

• 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.

Threats