The last time we saw the SWOT Analysis of Zara, this time let’s have a look at the SWOT Analysis of Marshalls.
Marshalls is an American department store chain. They have around 1000 stores all over America offering all kinds of product lines like footwear, clothing, beauty products.
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In this blog, we will have a look at the SWOT analysis of Marshalls but before that let’s have a look at the company overview.
About Marshalls
Marshalls is a subsidiary company which is owned by TJX Companies. Marshalls has more than (1000) thousand American Stores, including Marshalls Mega Store, which covers over 42 states & Puerto Rico, & also has 61 Stores in Canada. The Marshalls entered Canada in March 2011. It was founded by Alfred Marshall along with a group of entrepreneurs like Bernard Goldston, Norman Borren and Irving Blitt.
Initially, when it was newly established it was the time of post-world war, the rival companies were facing huge losses and due to inflation, they had raised the prices too. There the Marshalls found the golden chance to start an Off-price Store that would take the products directly from industries and would land directly to consumers.
Due to less price the consumers started getting attracted and the company experienced a great boom, this concept proved highly successful and within 10 years they became the leading off-price retail chain in America. Slowly and Steadily they started their expansion too. The Marshal & T.J. Maxx operates as a Sister store, and In 2019 it began operating a website for Online Shopping too. So that can attract more & more crowds.
| Founder | Alfred Marshall, Bernard Goldston, Norman Borren Irving Blitt |
|---|---|
| Year Founded | 1956 |
| Origin | Massachusetts |
| No. of Employees | 2500+ |
| Company Type | Private |
| Market Cap | US $77 Billion |
| Annual Revenue | US $38.937 billion |
| Net Income/ Profit | US $3.06 billion |
Product of Marshalls:
The Marshalls has many products in its portfolio some of the important range of products offered by the company are listed below
- Clothing
- Beauty Products
- Jewelry
- Shoes
- Bedding
- Furniture
Competitors of Marshalls:
- TJX
- Grayers
- Nordstrom
- Macys-inc
- Kohl’s
- Gap Inc
- JCPenney
SWOT Analysis of Marshalls
A SWOT Analysis is a tried and tested tool that helps one to understand Marshalls and the comparison of its business with its competitors and have an idea of the overall position of the bank. The strengths and weaknesses are the internal factors in this analysis while the opportunities and threats are the external factors involved.
1. Strengths of Marshalls
Those are some of the plus points which company has or something that Marshalls are good at so let’s learn what are the strengths of the company
- Designer Items at Discounted Rates-It is always seen that designer clothes or items seem to be highly expensive so the Marshalls offer them at a cheaper rate and because of this the wide range of crowd is attracted.
- Wide Product Portfolio-Company offers many products to customers which gives them a wide range and choice.
- Strong Financial Planning –The company attracts many of its consumers because it is an off-price store so a lot of crowds are fond of purchasing products from them. That’s why it has many consumers, resulting in good P&L statements and a very strong balance sheet.
- Quality Products –The quality offered by the firm is superior to maintain its customers. It always tries to be good in supplying good quality.
2. Weaknesses of Marshalls
As the coin has the two sides similarly the Marshalls have weaknesses too, because of which companies position is affected so the company needs to work hard to maintain its position in the market.
- Inventory Management-The firm has very poor inventory management it has to work a lot internally otherwise it may fail to retain customers.
- Customer Dissatisfaction-Though the company offers the products at a cheaper rate but due to poor inventory management, the customers may not get the products at the time as a result has to face dissatisfaction of the customer.
- No Good hands-on Technology-Talking about the technology it has to work a lot because the staff is not well equipped with the upcoming trends so needs to hire the youths who have well awareness of technology.
- Low Brand Awareness-The company does not take any special efforts to create brand awareness among the people, if this continues it will lose its identity, or may the competitors will run ahead of the company.
3. Opportunities of Marshalls
The marshalls are ever ready to adopt new things here are some of the opportunities company will have let’s study them
- Good Market Knowledge-The company has a very wide range of products and has good information related to the consumers taste, habits, preferences and which indeed tells in advance what will further scope.
- Emerging E-Commerce-As E-commerce is today’s need and due to the rising of customers demand in e-commerce as well as pandemic has proved the e-commerce is the best way to reach the customer it can prove most effective and too much profitable if it is adapted.
- Good Expansion Opportunities- The company already has 1230 stores and based on the services they provide has a great scope to expand.
- Expand Product Portfolio- As the consumer’s taste, habits, and preferences are always changing so it has great scope to accept new products as the variety it offers is also no less.
4. Threats of Marshalls
The Company has some threats too but if it tries to cope up with can change those threats into some better opportunities
- Government Regulations- As there are no special incentives or no special favors given to the company so all efforts have to be made by the company itself and being the fashion brand it has to pay lots of taxes.
- Credit Giving Facilities- The company offers credit facilities to many of its customers that’s why the company has to face many losses and has poor ROI, as a result, needs to work to overcome such situations.
- Shortage of Skilled Labours-The skilled laborers are always paid high as a result sometimes the Marshalls ignore them but due to the rising of e-commerce, needs to work on its staff to make them skillful or should hire the skilled and talented labor.
Conclusion
The Marshalls are one of the best American stores which is an off-price store providing consumer, fashion products at a very cheap rate. It covers a wide range of products like fashions, beauty products, shoes, furniture,and many more. It is a subsidiary company and has a wide scope of growth as it has already established 1230 stores among which 1130 are in America and 100 in Canada. Though there are some weaknesses and threats to the company as it is a well-managed company, if it starts working on it, it can overcome those easily.
As we all studied or saw that Marshals were not good at accepting new changes due to this they had faced many losses. Similarly, if you too do not keep yourself updated with the new trends which are the most important nowadays, check out the world-class courses taught by expert faculty at IIDE.
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