BA 3103 Critical Analysis Paper Pier 1

1352 Words Mar 30th, 2015 6 Pages
Kristin Colgan
Dr. Andy Hornett
BA 3103 MWF 9am
October 30, 2014
Critical Analysis Paper on Pier 1 Imports

Pier 1 Imports has earned a place as one of the leading competitors in the home furnishing industry with a focus on their brick-and-mortar storefronts. Alex Smith, CEO, believes that shopping for home furnishings is a visual impulse buy and has concentrated on creating an in-store experience for customers with bold, colored textiles and tableware.
Pier 1 excels in its strategy as a niche differentiator with the right product selection in the specialty segment of home furnishings. So, why did Pier 1 Imports decide to maintain its brick-and mortar strategy in the height of the e-commerce era? This paper will help us better understand
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Buyer Power is high with a lack of brand loyalty due to consumer’s ability to price compare online. Consumers are inundated with coupons and promotions which could sway them to purchase furnishings from a different store. Amazon also offers a membership, Amazon Prime at $99/year, which guarantees buyers 2-day shipping on all items marked Prime, and creates a buyer loyalty program for the company.
Figure 3: SWOT Analysis on Pier 1 Imports
Strengths
Visually stimulating store designs
Highly functioning supply chain
Excellent inventory and cost controls
Quality products and customer service
Weaknesses
High operational costs
Prices are geared toward middle-class
Opportunities
Expand e-commerce through advertisements through social media
Create a virtual store for online sales with a design simulation and guide

Threats
Increasing popularity of do-it-yourself (DIY) applications like Pinterest
Future housing crisis
The SWOT analysis helps us understand the strengths, weaknesses, opportunities, and threats of Pier 1 Imports. A major strength of Pier 1 is its highly functioning supply chain which Smith had retooled along with consolidating their merchandising and inventory processes making the whole process visible and trackable. Another strength they possess is the experience they create for customers with visually stimulating stores filled with quality products and well-trained customer service associates which you cannot get when shopping online. While

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