Mr Price Swot Analysis Essay

Strengths

• Mr Price is a well-established company that has been operating since 1985.

• Mr Price stocks affordable trendy fashion with different fashion lines. This broadens the target market as the affordable fashion creates a competitive advantage over other major groups such as Edcon and Woolworths, which is a bit more expensive.

• Mr Price has a wide demographic target audience, especially since they target LSM 6-10 , (middle to upper class) but also gets 24% from LSM 1-5.

• It is well known and established and therefore has a competitive advantage over new entrants.

• Mr Price has a variety of divisions namely: Mr Price Home, Mr Price Sport etc. This creates an advantage as brand loyal customers will support Mr Price and therefore increase

Fashion in the Loop, this helps customers engage in the brand, therefore increasing its customer base and profit shares.

• Due to the volatility of the Rand, Mr Price would further expand into Africa, such as Kenya. Threats

• Competition between Mr Price and Woolworths or Cotton On, as their main focus is on good quality clothing could become a threat.

• Clothing is imported from China and India, which is detrimental for the economy and employment.

• Same or similar clothing in Mr Price and Edgars could be a disadvantage because consumers would pay a bit more for good quality clothing, whilst also purchasing on credit.

• Change in consumer taste is a major threat as it is hard to predict future trends.

• Due to technological problems with the online store, customers could be disappointed and will associate negatively with the brand.

• Poor economic situations in the country, collapsing education system are all contributing factors why profits could decrease.

• A weak exchange rate will have a negative impact on Mr Price’s maintaining a low price in this tough economic environment.

• Anti-dumping goods could have huge impact on the profit of Mr