SWOT analysis of Bed bath & beyong SWOT analysis is a business tool used to evaluate organizations’ internal factors over which some measure of control are applied in order to maintain competitive advantage especially in a highly competitive market (Gayla, et al 8). Bed bath & beyong Inc operates a chain of domestic merchandise retail stores in the United States and Canada. In its operations, the company can be analyzed to have strengths, opportunities, weaknesses, and threats. Strengths Bed bath & beyong is believed to effective customer communication and services.
It is apparent that customer service is vital component for any organization that wants to be successful. It is because of customer satisfaction that a company can have new and returning customers. In fact, Bed bath & beyong is argued to have many loyal customers who come back for more services. Another important aspect of Bed bath & beyong’s strength is its reputable management. Studies have documented that an organization that excels in its operations endorses reputable management. Management encompasses both human resource management and organizations operations management (Gayla, et al 9).
Opportunities Bed bath & beyong has an opportunity to diversify its operations in other parts of the world through online marketing and operations. With diversity in the way technology has offered opportunities for organizations to market and operate, chances for such organizations to grow are high. Bed bath & beyong has online marketing that puts it in a better position to venture into to new markets. In addition, since Bed bath & beyong does not deal with a single product, it is a good opportunity to reach out many and different customers.
This acts as a good opportunity for the company because in situations where a customer may want to purchase several products may find it efficient and convenient to purchase them under one roof or retailer (Gayla, et al 9). Threats It is apparent that Bed bath & beyong faces several threats especially externally. For example, taxes can be a great threat especially when they keep on fluctuating. This means that the company may have unpredicted costs, which may force it to sometimes increase its prices. This has a negative impact on it because it may chase away its customers.
Additionally, politics may also play a part in dictating on conditions of environment the company operates in (Gayla, et al 9). In most cases, threats are unpredictable. For example, in times of economic crisis, a company can have difficult times in trying to balance between maximizing its profits while at the same time maintains the current prices in order to avoid losing customers. In another dimension, customers may have little money to spend in case of economic crisis, and this may also be a problem to the customer. Weaknesses Bed bath & beyong stores are not in abundance.
This may limit the company in serving more customers that it does currently. In essence, an organization with many stores has an opportunity to serve more customers than those that do not have (Gayla, et al 9). Another concern is Bed bath & beyong’s geographical concentration. If the company can open up new stores in other international markets, its profit margins would improve. Works cited Bed bath & beyong Inc. Web 6th April 2013 Gayla, Rogers, et al.
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