Strengths
- Affordable trendy fashion for adults and children.
- They are in every town.
- Popular store.
- Offers not only fashion but sports and homeware.
- Gives local designers a chance to showcase their goods.
- Offers regular sales and end of season markdowns.
- On a par with international and local trends.
- Social responsibility with the sponsorship of School Teams and the Redcap Foundation.
Weaknesses
- Not the best quality fabrics.
- Reputation of being cheap therefore not quality.
- Size issues due to importing from China.
- Stores are often untidy and cluttered.
- Staff are not helpful.
Oportunities
- Improve service in stores.
- Open an online store.
- Beacuse Mr Price is a household name, it allows them to open shops …show more content…
- Local shops opening in major shopping centres that can match Mr Price’s pricing.
Competitive rivalry
- Shops using local suppliers where the goods are a fraction cheaper.
- Shops such as Woolworths could take their customers away.
- If similar shops to Mr Price have sales, their potential customers are going to decrease.
- Customers could prefer another shops style of clothes.
Supplier power
- If a supplier is selling a product at a really cheap price, they can dictate the price in which they sell it for.
- Imports from China have become expensive for Mr Price due to South Africa’s weakening economy, so therefore Mr Price will need to go against what they have been doing for many years and increase their prices.
- If there are many different suppliers, it would be alot easier to obtain goods.
Threat of substitution
- Change in customer taste will make customers go to stores with fashionable styles.
- New trendy shops may open where customers prefer there different and more trendy style.
Buyer power
- Due to recession customers are not buying many items and are not paying cash for items, they generally buy on …show more content…
The fact that the vast majority of Mr Price’s management and staff have an ownership stake in the Company equips them better than most to tackle more challenging times.
Social
- Changing trends.
- Changing consumer behaviour.
- Unemployment, Mr Price will have to have a decreased target market.
- Have to sell products within boundaries of race and religion.
Technological
- Competition from new online shopping. Create online buying which will increase the range of potential consumers.
Legal
- The consumer protection act forces Mr Price to stay within the boundaries of these laws.
- National credit act allows Mr Price Sport to buy on credit from their suppliers at a reasonable interest rate.
- Mr Price cannot sell bad quality products as it is unethical.
Economic
- When South Africa is going through a resession, peoples levels of income is less, so the consumers buy less.
- Changes in taxes make it expensive for both the consumer and Mr Price.
- When inflation increases prices go up and this makes the consumer unhappy.
- When exchange rates are low, it makes it costly for Mr Price to import goods from overseas.
- Poverty is also a major factor as it decreases Mr Prices target
- Affordable trendy fashion for adults and children.
- They are in every town.
- Popular store.
- Offers not only fashion but sports and homeware.
- Gives local designers a chance to showcase their goods.
- Offers regular sales and end of season markdowns.
- On a par with international and local trends.
- Social responsibility with the sponsorship of School Teams and the Redcap Foundation.
Weaknesses
- Not the best quality fabrics.
- Reputation of being cheap therefore not quality.
- Size issues due to importing from China.
- Stores are often untidy and cluttered.
- Staff are not helpful.
Oportunities
- Improve service in stores.
- Open an online store.
- Beacuse Mr Price is a household name, it allows them to open shops …show more content…
- Local shops opening in major shopping centres that can match Mr Price’s pricing.
Competitive rivalry
- Shops using local suppliers where the goods are a fraction cheaper.
- Shops such as Woolworths could take their customers away.
- If similar shops to Mr Price have sales, their potential customers are going to decrease.
- Customers could prefer another shops style of clothes.
Supplier power
- If a supplier is selling a product at a really cheap price, they can dictate the price in which they sell it for.
- Imports from China have become expensive for Mr Price due to South Africa’s weakening economy, so therefore Mr Price will need to go against what they have been doing for many years and increase their prices.
- If there are many different suppliers, it would be alot easier to obtain goods.
Threat of substitution
- Change in customer taste will make customers go to stores with fashionable styles.
- New trendy shops may open where customers prefer there different and more trendy style.
Buyer power
- Due to recession customers are not buying many items and are not paying cash for items, they generally buy on …show more content…
The fact that the vast majority of Mr Price’s management and staff have an ownership stake in the Company equips them better than most to tackle more challenging times.
Social
- Changing trends.
- Changing consumer behaviour.
- Unemployment, Mr Price will have to have a decreased target market.
- Have to sell products within boundaries of race and religion.
Technological
- Competition from new online shopping. Create online buying which will increase the range of potential consumers.
Legal
- The consumer protection act forces Mr Price to stay within the boundaries of these laws.
- National credit act allows Mr Price Sport to buy on credit from their suppliers at a reasonable interest rate.
- Mr Price cannot sell bad quality products as it is unethical.
Economic
- When South Africa is going through a resession, peoples levels of income is less, so the consumers buy less.
- Changes in taxes make it expensive for both the consumer and Mr Price.
- When inflation increases prices go up and this makes the consumer unhappy.
- When exchange rates are low, it makes it costly for Mr Price to import goods from overseas.
- Poverty is also a major factor as it decreases Mr Prices target