Complete SWOT Analysis of Sleepyhead – New Zealand’s Most Trustworthy Name In Beds

Updated on: Feb 17, 2022
SWOT Analysis of Sleepyhead - Featured Image

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My name is Aditya Shastri and I have written this case study with the help of my students from IIDE's online digital marketing courses in India.

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Last time we discussed the SWOT analysis of one of the reputed telecommunication companies, Telstra. This time we will be going to know more about the SWOT analysis of Sleepyhead.

Leading brands in beds and mattresses in New Zealand – Sleepyhead is 100 percent New Zealand closely-held and operated. Originally based by Sydney Turner, bed creating experience, expertise and data have been passed down through four generations of Turners who’re equally as committed to creating beds in New Zealand, designed for each kind of New Zealander.

The thing which made this company achieve heights of success is its marketing efforts. For the last few years, the marketing strategy of every company is changing day by day. To know more about the changing scenario of marketing, join our Free MasterClass on Digital Marketing 101 by the CEO and founder of IIDE, Karan Shah.

Do you want to know how Sleepyhead became successful? In this blog, we will get to learn about the SWOT analysis of Sleepyhead. Before proceeding further let us just know more about Sleepyhead as a company.

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About Sleepyhead,

SWOT Analysis of Sleepyhead - Sleepyhead Customer Doing Unboxing of Sleepyhead Mattresses

Sleepyhead is a New Zealand based company involved in the manufacturing and distribution of bedding and accessories. It was established in the year between 1950-1960 and for the last 85+ years, it has been delivering sleep solutions with the help of more than 1,200 staff working dedicatedly in making the highest quality products to give its customers the best possible sleep. 

Sleepyhead is part of The Comfort Group, and other than New Zealand it covers the United States, some of the European countries and Asian regions including India with the selling and distribution of its products. It has also been awarded and trusted by Kiwis for eight straight years in terms of providing local communities with a comfortable sleep.

Quick Stats on Sleepyhead
Founder Steven van Alen
Year Founded 1950-1960
Origin New Zealand
No. of Employees 1,200+
Company Type Private
Market Cap N/A
Annual Revenue INR 1 cr – 100 cr (2021)
Net Income/ Profit N/A


SWOT Analysis of Sleepyhead - Home Furnishings by Sleepyhead

Product of Sleepyhead

  • Bedding
  • Mattresses
  • Sofas
  • Accessories

Competitors of Sleepyhead

  • Sleepycat
  • Sleepmaker
  • Beds Rus
  • Sealy

So as we got to know about the business of Sleepyhead, now we will discuss the SWOT analysis of Sleepyhead.

SWOT Analysis of Sleepyhead 

A SWOT analysis examines the strengths, weaknesses, opportunities, and threats that a firm faces. SWOT Analysis is a tried-and-true tool that enables a company like BCE (Sleepyhead Canada Enterprises) to compare its business and performance to that of its competitors.

It will give us a strategic analysis of its internal and external environment, which is crucial for understanding the SWOT Analysis of Sleepyhead.

To better understand the SWOT analysis of Sleepyhead, refer to the infographics below:

SWOT Analysis of Sleepyhead - SWOT Infographics of Sleepyhead

Below is an explicit guide to the SWOT analysis of Sleepyhead.

Strengths of Sleepyhead

Sleepyhead has numerous strengths that help it to thrive in the marketplace. Some of the strengths of Sleepyhead are

  • Distribution & Reach: Sleepyhead has created a reliable distribution network over its 80 years of journey that allows it to reach the majority of its potential market through innovation.
  • Cost Structure: Sleepyhead has a low to high price structure so that it is affordable to all the customers. They have big to small, hot to cold, and affordable to luxury bedding and accessories options.
  • Dealer Community: Sleepyhead have a strong relationship with the dealer itself, they supply free delivery, door to door services, if you don’t like it you can refund within 100 nights.
  • Innovation: Their rigorous dedication to innovation makes comfortable beds, sofa, sofa beds, mattresses, recliners and more. They have everything very innovatively made and manufactured.
  • Market Position: Sleepyhead holds a leading market position in the area of bedding and accessories. Since its inception, the growth enabled the company to create a new revenue stream and diversify the economic cycle risk in the markets it serves.
  • Broad Product & Retail Line: From bedding accessories to home decors and retail shops, Sleepyhead has been successful in offering comfortable home solutions which made Sleepyhead the first choice of customers while purchasing home comfort accessories.
  • Customer Satisfaction: Sleepyhead has been able to achieve high customer satisfaction among current customers and strong brand equity among potential customers due to its affordable to luxury bedding options with no compromise in quality.  

Weaknesses of Sleepyhead

Some of the weaknesses of Sleepyhead which they can work upon are

  • Profitability: The gain quantitative relation and web contribution percentage of the company are below the trade average.
  • Product Vary: There are gaps within the product range sold-out by the corporate. This lack of alternatives will offer new competitors a grip within the market. 
  • Poor Technological Investments: Sleepyhead needs to put more money into technology to integrate the processes across the board. Right now the investment in technologies is not at par with the vision of the company.
  • Reliance on New Zealand Market for Major Revenue: As Sleepyhead has its main headquarters in New Zealand, it is providing the services more efficiently and gets major revenue from New Zealand, and some parts of the United States. It is mostly dependent on the New Zealand market and hence lacks revenue from worldwide.
  • Low International Presence: Sleepyhead currently operates in only a few international markets like India other than New Zealand. It should consider operating in other countries to expand its business and create strong brand recognition and awareness in the market.

Opportunities for Sleepyhead

Opportunities are potential areas of focus for a company to improve results, increase sales, and, ultimately, profit. Some of the opportunities for Sleepyhead are

  • Technological Advancements: The new technology provides an opportunity for Sleepyhead to practice a differentiated pricing strategy in the new market. It enables the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions.
  • Social Media: Over the years the number of active users on social media channels has increased and with this Sleepyhead can make use of its social media handles to promote its products, interact with customers and even provide after-sale services.

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  • Opening of New Markets: The adoption of new technology standards and government free trade agreements has provided Sleepyhead with an opportunity to enter a new emerging market.
  • Overseas Expansion: Sleepyhead has its presence only in some areas of the United States, by initiating to cover the whole of the United States and other parts of neighbouring countries, Sleepyhead can gradually build up its stake in the market.
  • New Products: Sleepyhead should try to enter into new markets by expanding its product portfolio. Currently, Sleepyhead is only dealing in the manufacturing and selling of bedding, sofa and comfort accessories, by exploring other home items and essential accessories it can launch its complete new range of product categories.

Threats to Sleepyhead

Threats are environmental factors that can be harmful to a company’s growth. The following are some of Sleepyhead’s threats:

  • Local Manufacturers: In countries like India consumers prefer to buy bedding and accessories from local retailers due to its pocket-friendly nature. This is the area where brands like Sleepyhead are facing tough competition from local players. 
  • Counterfeit Products: As Sleepyhead deals in selling bedding and accessories, imitation of counterfeit and low-quality products under the name of Sleepyhead by fake product sellers can badly affect the name of Sleepyhead.
  • Transportation Cost: Sleepyhead products like bed, mattresses, sofa and accessories are heavy and big in size which requires big trucks and containers to ship it to the end consumer. Increasing transportation costs and fuel prices are negatively affecting the profitability of brands like Sleepyhead.
  • Exchange Rate: The exchange rate also keeps fluctuating and makes it difficult for a company like Sleepyhead because it extends service internationally while its suppliers are local.
  • Return & Damage: Sleepyhead 100 days return policy after delivering the final product can cause an increase in the return of damaged beds and mattresses which can abruptly increase the expenses of Sleepyhead.

This ends our complete SWOT analysis of Sleepyhead. Let us conclude our learning below.

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To Conclude

Sleepyhead is a well-reputed company that is a trusted one among customers in New Zealand. In the SWOT analysis of Sleepyhead, we learnt that it has reached the markets of its nation but is still facing the problem of marketing its products internationally due to fewer funds and inefficient financial planning.

With increasing competition in such markets, companies need to do better digital marketing efforts. In today’s world, people need to know more about the marketing aspects used to boost the company’s growth. If you are intrigued with the above piece of information in learning more and upskilling, check out the 3 Months Advanced Digital Marketing Course by IIDE to know more.

We hope this blog on the SWOT Analysis of Sleepyhead has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


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