6. SWOT Analysis
6.1 Strengths of Mr Price
a) Mr Price is a cash based operator and is currently operating on 83% cash sales out of their total sales of 2016. This is strength for Mr Price as there is less impact by the cyclical nature of retail, there is much less exposure to bad debt, Mr Price now also does not need to be dependent on credit driven sales - especially during poor economic times and by having a good cash flow this will support and fund the future growth of Mr Price. If you refer to figure 2 below I have provided a visual representation of the comparison between cash based sales and credit based sales of Mr Price over the past few years. Mr Price has improved their cash based sales from 79.9% to 82.8%.
Figure 3. Table representing a comparison …show more content…
By doing this they will also be improving the economy of South Africa and encouraging growth. Mr Price can also look for better suppliers who can provide better quality products to satisfy their customers’ needs.
6.4 Threats of Mr Price
a) A major threat that Mr Price has to face is their competition with various competitors in the same market offering similar products. Mr Price has many competitors such ZARA, Cotton On, PnP Clothing, PEP, Ackermans, Truworths, Foshini and Woolworths. Mr Price needs to conduct a competitor profile to analysis how much of a treat each competitor is by looking at things such as price, location and market share. If Mr Price builds a strong brand loyalty with their customers they will be able to focus more on the quality of their product and less on the competitors in the area.
b) Mr Price can sometimes offer misleading advertising where they advertise a product and customers go to the store to purchase this product but it is nothing like the product in the advertisement and is of poor
6.1 Strengths of Mr Price
a) Mr Price is a cash based operator and is currently operating on 83% cash sales out of their total sales of 2016. This is strength for Mr Price as there is less impact by the cyclical nature of retail, there is much less exposure to bad debt, Mr Price now also does not need to be dependent on credit driven sales - especially during poor economic times and by having a good cash flow this will support and fund the future growth of Mr Price. If you refer to figure 2 below I have provided a visual representation of the comparison between cash based sales and credit based sales of Mr Price over the past few years. Mr Price has improved their cash based sales from 79.9% to 82.8%.
Figure 3. Table representing a comparison …show more content…
By doing this they will also be improving the economy of South Africa and encouraging growth. Mr Price can also look for better suppliers who can provide better quality products to satisfy their customers’ needs.
6.4 Threats of Mr Price
a) A major threat that Mr Price has to face is their competition with various competitors in the same market offering similar products. Mr Price has many competitors such ZARA, Cotton On, PnP Clothing, PEP, Ackermans, Truworths, Foshini and Woolworths. Mr Price needs to conduct a competitor profile to analysis how much of a treat each competitor is by looking at things such as price, location and market share. If Mr Price builds a strong brand loyalty with their customers they will be able to focus more on the quality of their product and less on the competitors in the area.
b) Mr Price can sometimes offer misleading advertising where they advertise a product and customers go to the store to purchase this product but it is nothing like the product in the advertisement and is of poor