Mr Price Case Analysis Swot

Mr.price group limited was founded by Laurie Chiappini and Stewart Cohen. The current CEO of Mr.Price group limited is Stuart Bird. Mr Price consider themselves as a “Fashion value retailer” and sell mainly for cash. They are also one of the fastest growing retailers in South Africa. Mr.price ensures customers that they offer fashionable merchandise at an excellent value. According to the Mr.price website (referenced below), “Being a value retailer means lower markups and selling higher volumes in order to offer ‘everyday low prices’”. This proves the fact that Mr.Price does their best to ensure to offer affordable prices for their customers. Cash sales are said to constitute 80.4% of total sales. Mr Price is a cash-driven retailer, which

Strengths

• Mr Price offers value for money for their products.

• Their products are considered affordable.

• They have fashionable clothing items and stay up to date with latest fashion trends.

• They have a wide demographic.

• Mr Price is a well-known brand.

• They have 65 foreign stores.

• They are known for often having sales.

• Mr Price stores are easily available as there are so many nation wide

Weaknesses

• Mr Price has been called out by many customers for their poor quality.

• The stores are often in a mess and untidy

• There are complaints of bad service and negative attitudes from employees.

• There is the association that the brand is cheap.

• They import some of their clothes from China which causes size problems.

Opportunities

• They can rebrand the store and create a new image for the business.

• They can manufacture clothing locally which can create job opportunities and therefor create a positive image for the business.

• They have an opportunity of opening another trading division ( eg. A grocery store, restaurant etc...)

• They can update their store to be more

• Mr Price must ensure that they are in convenient locations to ensure that they have an advantage over their competitors.

• There is a lot of competition in there market that Mr Price is in.

Threat of new entrants

• An example of threats of new entrants for Mr Price would be foreign clothing stores coming to South Africa. They have not yet come to South Africa but they are a threat to stealing potential Mr Price customers.

• It would be a smart idea for Mr Price to negotiate with the shopping centre they are in to prevent too many competitors to also opening a store in that mall. Thereby lowering the threat of stealing customers.

• Mr Price should also consider patenting products to prevent potential competitors from selling a similar product.

• Mr Price should use marketing and advertising to their advantage, making it difficult for new businesses to enter the market.

• The government also puts legislation in place to make it difficult for new businesses to supply electricity to its customers.

• There is a tax on import goods which will make it more difficult for foreign stores to enter the