1. Complete a SWOT analysis with the information provided.

Sallys is a small, independently owned, high-fashion ladies clothing shop in a suburban strip mall. It is a full-price, full-service retailer for fashion-forward shoppers. It carries sportswear from popular designers, has a personal shopper for good customers, and has an on-premises tailor. Sallys is updating its strategic plan to secure more funding for an expected expansion.

SWOT Analysis

Strengths

Current

Loyal customer base.

Excellent reputation for high-fashion clothing and accessories within the community.

Little competition within a target market concerned with high fashion.

Acceptance by a target market more concerned with fashion, quality, and customer service than with price.

Unlike consumers favoring classic clothing, Sallys fashion-forward customers spend a considerable amount of money on clothing and accessories per year.

Sallys highly regarded personal shopper (who assembles clothing based on customer preferences, visits customers, and arranges for a tailor to visit customers).

Long term

Fashion-forward image with the stores target market.

Exclusive relationships with some well-known and some emerging designers.

Low-rent location in comparison to a regional shopping center.

Excellent supplier relationships.

Loyal employees.

Excellent relationships within the community.

Weaknesses

Current

Difficulty in recruiting appropriate part-time personnel for peak seasonal periods.

Small store space limits selection. Too often, the tailor does major alterations.

Long delivery times for certain French and Italian designers.

Lack of a computer-based information system that would better enable it to access key information concerning inventory, sales, customer preferences, and purchase histories.

Limited expertise in social media.

Long term

Limited bargaining power with vendors due to small orders. This affects prices paid, as well as access to hot-selling clothing.

Suburban strip mall location reduces its trading area. There is little tourist trade.

Over-reliance on the owner-manager, and on several key employees.

No long-term management succession plan.

Opportunities

Current

Hire another experienced tailor to create a custom-made clothing department.

Hire an assistant to better coordinate trunk and fashion shows. This would solidify Sallys reputation among fashion-forward shoppers and in the community.

Take over an empty adjacent store to increase size by 50 percent.

Enhance the Web site. This would enable it to appeal to a larger trading area, promote more events (such as a fashion show), and provide links to designers.

Long term

Larger store increases the ability to expand the number of designers, as well as the product lines carried. This would improve Sallys bargaining power with suppliers.

Custom-made clothing department to appeal to customers who dislike ready-to-wear apparel and to customers with highly individualized tastes.

Expanded market due to enhanced Web site.

Threats

Current

Rumors that Bloomingdales, a fashion-based department store, may soon locate a new store within 10 miles of Sallys. This could affect relationships with suppliers as well as customers. Bloomingdales offers one-stop shopping and has a flexible return policy for unaltered merchandise with its labels intact.

Local recessions impact on revenues.

Long term

Many customers in their 50s and 60s. Some are close to retirement; others intend to spend more time in Florida and Arizona during the winter. The retailer needs to attract and retain younger shoppers.