Mr Price Swot Analysis Essay

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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
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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

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