SWOT Analysis Of Victoria's Secret

The SWOT analysis was used to analyze Victoria’s Secrets internal strengths and weaknesses in connection to the external opportunities and threats. The company’s major strengths include strong brand recognition, fashion shows, strong E-commerce, wide range of products, Oligopoly within American lingerie market and effective social media marketing. Victoria’s Secrets weaknesses are their limited store locations outside of the US, high inventory rate, skinny centric marketing and lack of promotional consistency across channels. Going forward, company’s new growth opportunities include international expansion, economic recovery, growth of the target population and plus-sized market. The threats Victoria’s Secret may face consist foreign competitors, …show more content…
With proper preparation and planning Victoria’s Secret can expect positive business dealings. When doing business in Finland, it is advantageous to have some knowledge about the culture, economics, politics and infrastructure. Knowledge of such topics may help Victoria’s Secret to save time and money and ultimately help decide whether it is safe to invest in Finland. Finnish consumers want to experience new retail trends which leads to growing demand for brands in the Helsinki metropolitan area. Finland’s well-established infrastructure creates a lot of opportunities for Victoria’s Secret. Increasingly relaxed retail opening hours regulations will help Victoria’s Secret to establish their own opening hours. Large number of Russian tourists and visitors will also help Victoria’s Secret to boost retail sales in …show more content…
Victoria’s Secret’s pricing strategy is based on its positioning relative to competitors. Victoria’s Secret’s plan is to keep the price higher than its local competitors in Finland. A strategy that Victoria’s Secret will use in Finland is price skimming so they can enter the market with a relatively high price point. Introduction of lingerie store in Finland has a first-mover advantage to skim early sales while the brand has a high level of exclusivity. Pricing strategies Victoria Secret will use in Finland value added pricing. Value added pricing is based on high quality clothing while offering additional features such as brand recognition, fashions shows, engaging promotions and catalogues. Victoria’s Secret products are known from their high quality and high fashion all around the world. Victoria’s Secret’s brand is very well known world wide and gives the consumer certain status. Discount coupons and promotions will always be available. There is low competition in store carrying only lingerie in Finland. This is why it is acceptable to keep the price a little higher than the prices of lingerie sold in department stores carrying other products in combination with lingerie. Overall there is something for everyone in Victoria’s Secret there is more budget-conscious styles and the more expensive and unique styles. Ultimately the price will be comparable to U.S and implement the U.S sales model